How to Grow Your Practice with Refund Transfers
The Refund Transfer (RT)1 is a bank product that allows tax preparation and other authorized fees to be deducted from your client's tax refund.
In addition, the RT is also a method for clients who do not have bank accounts to receive their refunds with the speed of direct deposit instead of waiting for a mailed check.
When tax refunds are issued by the IRS or states, the bank deducts all authorized fees from the refund and automatically forwards them to the appropriate parties.
This means that tax preparation fees are deducted from your client's refund and deposited directly into your account, eliminating the need for up-front payment from your client and ensuring you're paid promptly for your services.
TaxAct has partnered with Republic Bank for many years to offer RTs to our professional tax preparation customers.
Republic Bank now offers additional services to make your office more efficient and provide you with new opportunities to market and grow your practice.
A Variety of Disbursement Types
Once your client selects the RT, he or she has several disbursement options to receive the net refund.
These options include a check that can be printed in your office, Walmart Direct2Cash direct deposit and a prepaid card.
Check – Republic has arranged for RT check-cashing options at:
- Wells Fargo® – Clients can cash RT checks up to $8,000 for only $8.00
- Walmart – Clients can cash RT checks up to $7,500 for only $6.00.
- Walmart Direct2Cash – When funding is issued, your client can go directly to participating Walmart locations to pick up the refund as cash, up to $7,500.
- Direct Deposit – Your client can choose to have the RT proceeds deposited to existing bank accounts.
- MoneyClip Visa Prepaid Card1 – Client refunds can be loaded directly to a prepaid card – an option for clients who do not have an established bank account. The cardholder can reload the card via payroll direct deposit or with cash.
Proactive Text Messaging
Republic Bank also offers optional free text messaging to notify your client when you print the check, when funds have been loaded to their MoneyClip Card, or when refunds are available to pick up at Walmart.
If you're printing refund checks in your office, you can delay text messages in one hour increments, up to 24 hours. This option allows you to save time and effort of answering questions about whether refunds have arrived. Remember, message and data rates may apply from the wireless carrier.
Republic Bank also offers the following programs to help you succeed and grow your practice:
Receivables Assistance Program, (RAP)
If, like many tax offices, you open around the first of the year, you've likely paid overhead expenses for over a month before you start receiving prep fees through IRS deposits.
With the Receivables Assistance Program. Republic Bank advances practices 50% of the tax prep fees as soon as it receives an acknowledgement from the IRS for returns with a Refund Transfer. This is a free service designed to ease your cash flow struggles early in the season.
Republic Bank has partnered with SmartBiz to offer SBA Loans to help tax preparers like you grow and expand their practices.
This program eases the difficulty of obtaining loans due to the seasonality and cash flow challenges of owning a tax preparation business. Loan amounts range from $5,000 to $350,000 with terms up to 10 years.
Republic Bank is always developing new products and services, and updating existing bank products and services to help you grow your practice.
Visit www.republicrefund.com to learn more.
1 Refund Transfers and Money ClipSM Visa® Prepaid Card are offered by Republic Bank & Trust Company, member FDIC. Fees apply.
2 SBA Loans are offered by Smartbiz and not by Republic Bank & Trust Company.