Bank Products

[erchess]

Jiggers do you have to print checks?

I was not aware that there were RAC options that print the check for you? I am aware of spending cards and the possibility of direct deposit of course.

In case there is anyone here who doesn't know it, RAC is industry shorthand for a tax refund related bank product that is not a loan. From the IRS's point of view what is happening is a direct deposit into the client's bank account but this account is set up especially for receipt of the tax refund and once the money is there the account closes with fees going to the bank and the preparer and the balance to the taxpayer. The fee is much lower than for a loan product because there is no loan and the taxpayer gets no money until the IRS deposit if any. A typical RAC fee as far as I know is around $20. I've always felt that it isn't bad for someone who either has no bank account of their own to receive a DD into or lacks the funds to pay up front.

[Jiggers]

Just asking - if they cannot pay your fee out of pocket, are these really the type of clients you want to attract? Seems that these type of clients are also the ones who price shop every year.

Here in a small South Texas town, I have MFJ clients with a kid or two, W-2's totalling $80,000, which is a lot for this small town, and live paycheck-to-paycheck.

I have another MFJ client, W-2's, 1099R, totalling $200,000, and $10 interest income. Spend everything they get.

My software uses EPS Financial, very cheap, and I get my fee deducted from their refund, and the client pays the small fee. Not an RAL.

But I only had 3 that used that this past year.

[KBTS]

I am thinking this year about using a bank product for the first time. I do not want to do
rapid refunds, debit cards or print checks. I just want the product to take my fees from
the clients refund.

Does anyone know of a bank product that just does fee collection and what costs are
involved.

My current clients would probably not use this feature, however, would like to try to
increase client base by getting clients that now go to big box companies simply because
they do not have to come up with money to pay preparation fee out of their pocket.

Just asking - if they cannot pay your fee out of pocket, are these really the type of clients you want to attract? Seems that these type of clients are also the ones who price shop every year.

[Jiggers]

What tax software do you use?

[Earl]

I am thinking this year about using a bank product for the first time. I do not want to do
rapid refunds, debit cards or print checks. I just want the product to take my fees from
the clients refund.

Does anyone know of a bank product that just does fee collection and what costs are
involved.

My current clients would probably not use this feature, however, would like to try to
increase client base by getting clients that now go to big box companies simply because
they do not have to come up with money to pay preparation fee out of their pocket.