Prepaid Debit Cards for Tax Refunds

If you own a tax business, you may have encountered taxpayers who have no bank account. In financial arenas these folks are referenced as “the unbanked.” These clients are the taxpayers who may request a refund transfer check or, if they are able to pay up-front, may request a tax refund check from the IRS. While this may seem inconvenient, inefficient or unusual to people who regularly use banking conveniences for everyday life, this is one way that some taxpayers are able to avoid overdraft fees, avoid the purchase of costly checks, and avoid other hidden fees that banks regularly impose. However, there are options for these tax clients that do not involve paper tax refund checks.

Prepaid debit cards for tax refunds are very common now. Most banks who work in the tax industry offer prepaid debit cards for tax refunds as a refund transfer option. This allows your taxpayer client to enjoy some of the benefits of having a bank account while avoiding the formal banking institution. After the tax refund preparation fees are paid, the remainder of the tax refund is automatically loaded onto the card. The taxpayer can use this prepaid debit card just as one would use any other debit card. Often these prepaid debit cards are reloadable so they can continue to be used year after year. Some prepaid debit card vendors are even equipped to offer the ability to have direct deposits of employment wages put onto the cards. 

If you are a tax office owner and would like to learn more about prepaid debit cards for tax refunds, feel free to call into the office at (866) 357-2052.