Are companies not allowed to do cashback bonus programs soon?

I heard that debit and credit cards that offer types of cash back rewards programs, will soon not be able to do that any longer. I was told it was because it was tax free money and the government didn’t like it. Any truth to this? I’ve tried google-ing and what not, but haven’t found anything.

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1 Comment »

  1. Comment by the tax lady — November 19, 2011 @ 1:30 pm

    The change in policies–which has already started–is because congress is voting to change the fee structure. If they can’t make money on the usage of the cards, there is nothing to share with the consumer.

    As far as taxes, the money was considered a ‘rebate’ on the purchases and thus not taxable.

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