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Refund Transfers Help Tax Professionals Get Paid

Refund Transfers Empower Tax Professionals

This post is intended for the tax preparer, regardless of experience, who is interested in learning more about “tax refund bank products,” or “bank products” for short. To understand bank products, it’s helpful to understand what happens at the tax office.

When engaging a new client, a tax preparer will typically ask for upfront payment and, in rare cases, a tax preparer may decide to assume a credit risk by preparing the taxes anyway and collecting payment at a later date. Simply put, a bank product is a third option which allows a tax preparer to collect payment from a taxpayer’s refund with the assistance of a trusted financial services provider.

The Refund Transfer Process

What does this mean exactly and how does it work?

It means that the tax preparer can help the new client without worrying about getting paid because the financial services provider is a trusted third party whose primary responsibility is to receive and disburse funds to the appropriate parties.

These disbursements typically come in the form of a check or direct deposit. The financial services provider charges a fee for providing this service.

Tax Preparer Benefits

  1. Can boost sales by serving a wider customer base

  2. No anxiety about getting paid or turning away cash-strapped customers

  3. Offering tax refund bank products is easy and fits with existing tax prep workflow

  4. Bank product providers work seamlessly with most professional tax software programs

  5. Higher customer satisfaction and loyalty

Taxpayer Benefits

  1. Can have taxes prepared and pay out of the refund once it arrives for a small fee

  2. Quick access to refunds, even without a bank account

  3. Can cash checks for a low, flat rate at thousands of locations nationwide

  4. Refunds can be deposited into reloadable debit cards

  5. Free mobile apps are available to view balances and track refund status

In our next post, we’ll share an infographic that best describes refund transfers.

Do you use tax refund bank products? If so, why did you begin offering them and what do you like and dislike? Find us on twitter #taxprotalk @refundo. 

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