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 refund transfers, it’s helpful to understand what happens at your tax office.
When engaging a new client, tax preparers 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, refund transfer is a third option which allows tax preparers to collect payments 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 do refund transfers work?
It means that tax preparers can help new clients 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, and the financial services provider charges a fee for providing this service.
Refund Transfer Benefits For Tax Preparer
Can boost sales by serving a wider customer base
No anxiety about getting paid or turning away cash-strapped customers
Offering tax refund transfer is easy and fits with existing tax preparation workflow
Refund Transfer providers work seamlessly with most professional tax software programs
Higher customer satisfaction and loyalty
Refund Transfer Benefits For Taxpayers
Can have taxes prepared and pay out of the refund once it arrives for a small fee
Quick access to refunds, even without a bank account
Can cash checks for a low, flat rate at thousands of locations nationwide
Refunds can be deposited into reloadable debit cards
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.