Chase Challenges Robinhood Memecoin Credit Card Rewards

JPMorgan Chase has raised concerns with Visa over how credit card purchases of Robinhood-linked memecoins are being categorized, potentially putting rewards earned from these transactions at risk.

Visa rules generally require cryptocurrency purchases to carry merchant category codes (MCC) 6012 or 6051 and a quasi-cash designation. Such transactions typically do not qualify for credit card points or cashback. However, reported tests involving dogwifhat (WIF) purchases were processed under MCC 5815, a category associated with digital books, movies and music, allowing normal rewards to be credited.

Chase argues that its rewards agreement specifically excludes cryptocurrency and other cash-like transactions. The bank reportedly maintains that rewards should not have been issued and has taken the coding dispute to Visa.

Crossmint, which provides infrastructure for the purchases, takes a different position. It limits the service to memecoins it considers digital collectibles tied to internet culture, while excluding stablecoins and payment-focused cryptocurrencies.

That distinction has some regulatory support. U.S. Securities and Exchange Commission staff compared certain meme coins with collectibles in 2025, while a March interpretive release reportedly cited WIF alongside CryptoPunks. Visa's payment rules, however, do not provide a comparable memecoin exception.

The dispute comes as platforms seek to make memecoin purchases as simple as everyday online payments, including through Apple Pay. New York Attorney General Letitia James is also reportedly reviewing the arrangement.

WIF traded around $0.19 on Wednesday, down roughly 2% over 24 hours, with a market capitalization near $197 million. The payment controversy had little immediate impact on its price.

Separately, a viral claim that a trader lost $19.8 million buying Robinhood Chain token Artificial Inu (AI) appears to have resulted from misleading price-tracker data. The tracker reportedly interpreted one stage of a multi-pool transaction as the entire trade. Traders reconstructing the route estimated the actual purchase at about $650,000, although that figure was not independently confirmed.

Visa could ultimately recategorize the merchant, issue warnings or fines, or claw back fees. Any such action could eliminate credit card rewards on future memecoin purchases.