Introduction

For most tax offices in the United States, bank products are not optional — they are the difference between closing a return and watching the client walk down the street to the office next door. Refund transfers and refund advances let your clients walk in with nothing in their pocket and walk out with their fee paid and their money on its way. This article explains how each one actually works, why your clients are asking about them, and how to choose a banking partner that will not embarrass you mid-season.

What Bank Products Actually Are

A bank product is a short-term financial product, offered through an IRS-authorized bank, that allows a client to either receive their refund without paying upfront preparation fees or receive a portion of their refund early as a loan. Your tax software integrates with the bank, the IRS sends the refund to the bank, the bank takes its fee and your preparation fee, and the rest is disbursed to the client.

Refund Transfer vs. Refund Advance

These two terms get used interchangeably, but they are different products with different mechanics, different fees, and different client conversations.

• Refund Transfer (RT): the client pays no out-of-pocket fee. The IRS deposits the refund into a temporary bank account, the bank deducts your preparation fee and the bank fee, and the client receives the rest. Typical bank fee: $35-$60. Timeline: same as a normal IRS direct deposit.
• Refund Advance: a no-interest or low-fee loan against the client's expected refund, often available within hours of acceptance. The bank decides who qualifies based on the return. The advance is repaid automatically when the IRS sends the refund.

Why Clients Ask for Them

Bank products solve real problems for the people walking into your office. If you are not offering them, the office down the road is — and your client is asking why.

• No upfront fee: removes the single biggest objection at the close.
• Faster cash: refund advances put money in the client's hand the same day the IRS accepts the return.
• No bank account required: prepaid debit cards mean unbanked clients can still be served.
• Trust: the client sees a recognizable bank brand on the disclosure, not just your office.

How to Pick the Right Banking Partner

Your tax software determines which banks you can offer. Once you know that list, evaluate each option on the same criteria: advance amounts and approval rates, bank fees, disbursement options (direct deposit, prepaid card, check), settlement speed, and the quality of mid-season support. The cheapest bank fee is meaningless if the bank's approval rate is half what the competing bank approves.

Compliance and Disclosure Reminders

Bank products are subject to specific IRS and bank disclosure requirements. Two non-negotiables every preparer must remember:

• The client must receive and sign every bank disclosure document before transmission — never after.
• Your preparation fee for a bank-product return must be the same as the fee for the same return paid in cash. Charging more is a violation of IRS Circular 230 and bank program rules.

“Bank products are where new preparers either build their reputation or lose it. Offer them, explain them honestly, and your clients come back every year. Try to hide the fees and you will not see them again.” — ETS Banking Partners Team

How ETS Connects You to Banking Partners

Executive Tax Software ships with direct integrations to multiple IRS-authorized banking partners, so you can compare advance amounts, fees, and approval rates side by side before you sign up — and switch between them year over year if a better offer appears. Our team also handles the enrollment paperwork with the banks on your behalf, which is the single most underrated time-saver of the onboarding process.

Final Thoughts

Bank products are a multiplier on every other part of your tax office: more clients close, more clients come back, and unbanked clients can finally be served. The right banking partner makes that multiplier reliable. Pick a software that gives you choice between banks, train your staff to explain the products honestly, and you will see the difference in your retention numbers within one season.