Robinhood Wallet, Fomo Card Purchases Appear to Bypass Crypto Rules

Card networks and issuers commonly restrict cryptocurrency purchases or treat them as cash advances, which can trigger extra fees and exclude rewards. Tests involving Robinhood Wallet and Fomo suggest memecoin transactions may instead carry a “digital media” merchant classification. That distinction matters because payment controls depend heavily on transaction coding, raising questions about compliance, consumer protection and whether issuers are accurately assessing crypto-related risk.

Recent test purchases showed users could buy memecoins with credit cards through Robinhood Wallet and Fomo while the charges appeared as digital-media transactions rather than cryptocurrency purchases. The coding seemingly allowed the payments to clear despite card-network crypto restrictions and enabled customers to earn credit-card points. Separate coverage of the same trading surge also flagged roughly $20 million in suspected onchain slippage, intensifying scrutiny of both transaction execution and the platforms’ payment practices.