Robinhood Users Are Earning Credit Card Rewards While Buying Memecoins

A strange loophole is allowing some traders to earn credit card rewards while buying memecoins through $HOOD-linked services.
Users of Robinhood Wallet and social trading app Fomo have reportedly been purchasing memecoins with Visa and Mastercard credit cards, Apple Pay and Google Pay through Crossmint.
The Block found that some of these purchases were being classified as “digital goods/media” rather than crypto transactions.
That classification allowed certain users to earn normal credit card points or cash back on memecoin purchases instead of having the transactions treated like cash advances or crypto purchases.
Chase has said the transactions were incorrectly classified and has asked Visa to investigate the issue.
The New York Attorney General’s Office is also reportedly reviewing the matter.
If the classification is corrected, the ability to earn rewards on these purchases could disappear quickly.
For now, the episode highlights how payment infrastructure is struggling to keep up with the increasingly blurred line between traditional card payments and crypto transactions.