Those Credit Card Bonuses May Be Taxable
Have you gotten a bonus from your credit card company for successfully referring friends or family for new cards? You may owe taxes on that bonus. People who thought they were getting a perk with no strings attached are getting 1099 tax forms from some major card brands, including Chase, American Express and Discover. Whether rewards or bonuses are taxable depends on whether they are tied to spending on the card, tax experts say. If you get cash back or rewards from a credit card in exchange for buying things with the card, the Internal Revenue Service generally doesn’t consider the rewards taxable. If you earn a reward or bonus for simply opening an account–or referring a friend who opens a new account–that amount is considered to be taxable. [The New York Times]
70% of all online gambling transactions are now made using mobile devices (Getty)Getty
Gambling Industry Report Finds 95% Growth In Mobile Transactions
The last five years are marked by the continuing expansion of mobile gambling. Not only are players using their mobile devices to gamble, they are using them to pay for their online gambling. Back in 2012, the growth rate for mobile financial transactions compared to 2011 was just 6%. In 2018 the growth rate had soared to 95%. An iovation study found that 70% of all online gambling transactions are now made using mobile devices. [Legal Sports Report]
This Legislation Could Force Stores to Take Your Cash
Stores and restaurants in several states would be required to do something pretty basic if certain lawmakers have their way: accept their customers’ cash. The legislation comes amid a worldwide move toward cashless payments using credit cards or mobile devices. Critics say an outright ban on cash discriminates against those without credit or bank accounts, and raises concerns about privacy and data security. The New Jersey Legislature and the Philadelphia City Council have passed measures this year that would ban cashless stores. New York City, Washington, San Francisco and Chicago are weighing similar bills. [The New York Times]
Purchases With Plastic Get Costlier for Merchants-and Consumers
Credit card companies are increasing a range of fees that U.S. merchants will pay to process transactions, a move likely to inflame already fractious relations between many businesses and card networks. Visa and Mastercard are preparing increases to certain existing fees that will kick in this April, according to people familiar with the matter. Merchants often increase the prices consumers pay in an attempt to protect their own profits. Roughly 1% to 2.5% of prices for goods and services go to cover card fees, according to people familiar with merchant pricing. [The Wall Street Journal]
Another Multibillion-Dollar Settlement Won’t Dent Mastercard’s, Visa’s Dominance
Visa and Mastercard are going to have to put a lot of checks in the mail. The U.S. District Court for the Eastern District of New York said in a release that an agreement had been reached to settle a class action lawsuit brought by merchants who claimed the card processors had charged them excessive fees on debit and credit transactions. Visa and Mastercard, and certain banks, will pay between $5.54 billion and $6.42 billion on claims from merchants who accepted customer payments via Visa or Mastercard anytime between 2004 and Jan. 25, 2019. [Barron’s]
Mastercard Renews Effort to Enter Chinese Market
Mastercard, after years of frustrated attempts to enter the Chinese market, is trying again by joining with a Chinese company close to the regulator in charge of approving credit card businesses. The card network plans to set up a joint venture with NetsUnion Clearing Corp., a clearing house for online payments more commonly known as Wanglian. The person said Mastercard will then refile its application with the People’s Bank of China, which is in charge of approving card-clearing services. [The Wall Street Journal]
Mobile Coupons Drive Loyalty, Customer Engagement
As couponing continues to evolve, brands and retailers alike must pay attention to text messaging, as it’s going to quickly disrupt the way people access and use deals to make purchases. With 90% of all text messages read within three minutes of delivery, this is an exciting opportunity to help businesses deepen brand affinity and engagement with highly personal mobile deals. The golden rule of 21st century retail is personalization, and what’s more effective to garner long-term brand loyalty than offering consumers with deals tailored exactly to their personal needs? [Mobile Payments Today]
What is the Earned Income Tax Credit?
It is tax time in the United States, and many Americans are trying to make sense of the new tax code and hoping they qualify for a return instead of having to pay. One thing that could ensure a return is qualifying for the Earned Income Tax Credit, which is a benefit for those who have low to moderate income. To qualify for the Earned Income Tax Credit, you must meet a number of criteria. [LowCards.com]
Apple, Goldman Sachs Team Up on Credit Card Paired With iPhone
Apple and Goldman Sachs plan to start issuing this spring a joint credit card paired with new iPhone features that will help users manage their money. The card will be rolled out to employees for testing in the next few weeks and officially launch later this year. The companies hope to lure cardholders by offering them extra features on Apple’s Wallet app, which will let them set spending goals, track their rewards and manage their balances. [The Wall Street Journal]
How Will People Bank in the Future?
What will replace the personal computer, smartphone and other digital devices that dominate transactional banking today? With 5G networks about to roll out, augmented reality and mixed reality becoming more pervasive, and AI, voice devices, and other Internet of Things (IoT) integrations, could completely new forms of engagement be on the horizon? [The Financial Brand]
Provided by LowCards.com