How to Use Tax Bank Products to Grow Your Business

Woman tax preparer using bank products with TaxSlayer Pro

As a tax preparer, using bank products can help you get paid on time and allow you to offer more to your clients. If you’re unsure about using bank products, here’s everything you need to know about how they can benefit you and your customer base.

What are Tax Bank Products?

At their core, bank products are simply a disbursement option for your clients’ tax refunds. They also allow your clients to have your fee deducted from their tax refund. Some banks will also allow taxpayers to receive an advance on their refund. You might also hear bank products called “settlement solutions” and “refund transfers.”

How Bank Products Work

After you’ve confirmed that your client will receive a refund, give them the option of using a bank product to receive their refund and pay your fee. The IRS sends the money directly to the refund settlement bank, and the bank sends the payment back to you and your client. 

Bank products also allow your clients to choose how they want to receive their refund: as a direct deposit, a check, or a prepaid card. No matter which form of payment your client chooses, your fee will almost always be paid as a direct deposit. 

If you’re working with a tax software that integrates with bank products, the process is easy for you. You can work directly in your tax preparation software to select the bank product options that are best for your individual clients.

Use of a bank product usually involves small fees for your client, which will be deducted from their refund, as well. These can include fees from the bank and your tax software company. Typically, the tax preparer won’t face additional fees for using bank products.

What Else Can Bank Products Do?

Many bank products offer a full or partial refund advance. Refund advances are a kind of loan that allows your clients to receive their money as quickly as possible. When the IRS sends the refund to the refund settlement bank, the bank keeps the money, and the “loan” is repaid.

Banks that offer refund advances include EPS Financial, Santa Barbara, RiverCity Bank, along with several others. Many of these advances are interest-free, up to a certain amount. If your client wants to receive even more of their refund as an advance, they can usually choose to take out a larger amount and incur interest charges. 

Getting Started with Bank Products

The best way to get started with bank products is by choosing a tax preparation software that can integrate with bank products. This streamlines your workflow and is usually more cost-effective than working with banks separately. You’ll then need to get preapproval from the refund settlement bank. The application is typically straightforward and quick, especially if your software company’s customer service department can guide you through the process. 

For TaxSlayer Pro customers, our Customer Growth Team can help you choose the bank products that are best for their business and get approved quickly. 

Improve Cash Flow & Grow Your Business

Bank products eliminate the time you spend chasing down payments. Because your fee is automatically deducted from your clients’ refunds, you never have to worry about getting paid. With the time you save, you can focus on gaining and serving more clients.

Offering bank products also gives you an edge over tax preparers who don’t utilize bank products. You can offer your services at no out-of-pocket costs to your clients, and you can help them get their money faster. To take full advantage of bank products, differentiate yourself from your competitors. Advertise how you can help your potential clients get their refunds more quickly with no upfront costs.

It’s also important to inform your clients about the fees associated with bank products. Your clients are sure to appreciate your transparency, and for many taxpayers, the convenience of bank products outweighs the small cost. For clients who need the help of a tax preparer but can’t afford to pay you upfront, bank products offer the ideal solution and are well worth the fee.

If you’ve been hesitant to try bank products, the experts at TaxSlayer Pro can answer any questions you may have and how to get started.