Referral Fees for New Deposit Accounts
Answer by Andy Zavoina, BOL Guru Guru Bio
Question: Our marketing department wants to pay our customers (both consumer and business) a referral fee for every new deposit customer they refer to the bank. The referral must result in a new, funded deposit account.
I am unaware of any restrictions on such a promotion. Am I missing anything?
Answer: In a nutshell, your new customer will have to waive a privacy right because you're telling someone else that these folks now bank with you. You also could have tax reporting when you pay $600, 1099-MISC.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
