Referral Bonus

We are going to run a referral promotion. If a customer refers a friend to open a consumer checking account with debit card and e-statements we will give the new customer $25 and if they have direct deposit we will give them another $25. We will give the referring customer $25 when the new customer opens their account. Does the bonus get reported under 1099 Misc.?
Thanks

I am interested to hear from anyone that has a done a promotion like this as well, and what compliance and/or privacy concerns come into play?

Do a search for "refer a friend" with the quotes and you will find a lot of discussion on this topic.