Skip to content
Thread Options
#736318 - 05/18/07 08:13 PM Gift Card Rewards
J2C Offline
Diamond Poster
Joined: May 2004
Posts: 1,475
Big Brother knows and that's a...
We currently have a referral program for our customers to receive a $25 merchant gift card when they refer a new customer to us. The face value of the card is $25. We (the bank) are being charged a $3 fee for each card that is issued. Question is does the bank issue a 1099 to the customer for the $25 or for $28? Our invoice isn't broken out down to show the fees and the cards seperately, it just shows them as one total.

My opinion is mine only- not my employer's!

Return to Top
#736431 - 05/18/07 08:52 PM Re: Gift Card Rewards J2C
rlcarey Online
10K Club
Joined: Jul 2001
Posts: 79,958
Galveston, TX
Payment for referrals are not interest and would be reported under the 1099MISC rules which have a threshold of $600. You are not giving these for referral on mortgage loans - right?
The opinions expressed here should not be construed to be those of my employer:

Return to Top

Moderator:  Andy_Z, MoneyMaker