Robinhood is drawing attention over how memecoin purchases made through its wallet are being classified on card statements. Recent test buys routed through payments partner Crossmint showed up under merchant category code 5815, the same label used for online books, films, and music, not cryptocurrency. That distinction counts for cardholders and banks. With the digital media code, customers earned standard rewards points, while crypto-coded transactions usually do not qualify. Chase flagged the issue and escalated it to Visa, since this coding meant cardholders got points that are not typically allowed for crypto-related purchases.
Merchant category codes shape three outcomes: they determine if you get rewards or cashback, they affect how banks and networks monitor for higher-risk transactions, and they guide how banks interpret what you are buying, digital goods, entertainment, or crypto. But ultimately, the network’s stance will matter most. If Visa decides the transaction should be treated more like crypto or quasi-cash, Robinhood and Crossmint may have to recode such purchases, affecting rewards eligibility and compliance review.
It depends on whether Visa requires a reclassification or allows this approach to stand. The outcome will show how card networks plan to treat memecoin purchases made through wallet-linked card payments.
Robinhood’s memecoin buys being coded as digital media, and the scrutiny around it, is the watch as payments rails push back on crypto categories.