Bank Products for Tax Preparers: TPG Tax, EPS Financial, and Refund Transfers
Bank products — primarily Refund Transfers (RTs) and in some markets Refund Anticipation Loans (RALs) — are one of the most effective tools for independent tax preparers serving lower-to-moderate income clients. A Refund Transfer allows your client to pay your preparation fee out of their IRS refund rather than upfront, removing the most common objection from clients who need their taxes done but do not have $200–$300 available in January. For the preparer, bank products mean you get paid within 24–48 hours of IRS refund funding — no collections, no invoicing, no late payments. Here is how the system works and how to set it up.
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How Refund Transfers Work
A Refund Transfer is a temporary bank account opened by a bank product processor (TPG Tax, EPS Financial, or Refundo) at a partner bank. When you e-file a return with bank product enrollment, the IRS deposits the refund into this temporary account instead of the client's personal bank account. The processor then deducts your preparation fee, their service fee (typically $39.95–$44.95 charged to the client), and any applicable fees, then disburses the net amount to the client via direct deposit, prepaid debit card, or paper check. Your fee is deposited to your designated preparer account within 24–48 hours of IRS funding. There is no credit risk to you — the processor assumes all risk. You receive your fee whether or not the refund fully covers all fees.
TPG Tax Products Group: The Market Leader
TPG Tax Products Group (owned by Green Dot Corporation) is the largest bank product processor in the U.S., processing refunds for millions of returns annually through independent preparers. TPG integrates natively with Drake Tax, TaxSlayer Pro, CrossLink, and several other professional platforms — setup is completed within your software's bank product enrollment section. TPG's Refund Transfer fee to the client is currently $39.95. Preparers earn a fee split for volume; high-volume preparers also qualify for advance programs where TPG advances your preparation fees before IRS funding based on expected refund volume. TPG also offers a software purchase advance program that allows you to borrow against expected bank product fees to pay for your tax software in December before season revenue arrives.
EPS Financial: The Strong Alternative
EPS Financial (part of Pathward Financial) is the second-largest bank product processor and is known among preparers for competitive fee structures and attentive customer service. EPS integrates with Drake Tax, ProSeries, and other platforms. EPS's Edge program offers preparers cashback incentives on high bank product volume. The client-facing fee structure is similar to TPG at $39.95–$44.95 per Refund Transfer. Some preparers alternate between TPG and EPS based on annual promotional incentives, while others maintain accounts with both to ensure redundancy if one platform experiences technical issues during peak filing season.
Refundo: The Challenger
Refundo is a smaller bank product processor that markets specifically to independent preparers with competitive fee splits and lower enrollment requirements. Refundo is known for faster customer service response times than the larger processors and offers a mobile check printing option that allows preparers to print client refund checks in-office — useful for serving unbanked clients who cannot receive direct deposits. Refundo integrates with CrossLink and several other platforms. For preparers in markets with high concentrations of unbanked clients who prefer cash or check disbursement, Refundo's mobile check printing capability is a meaningful competitive advantage over TPG and EPS.
Setting Up Bank Products: The Enrollment Process
Bank product enrollment requires: an active EFIN, a completed application with your chosen processor (available through your tax software's bank product section), business banking information for your preparer fee deposits, and IRS compliance information. Processors conduct their own suitability review — EFINs with compliance issues or histories of suspended operations may be declined. Apply for bank product enrollment in October to ensure approval before January. Some processors require a minimum number of prior-year returns filed to qualify for enrollment as a new preparer; TPG and EPS both have programs specifically for new preparers with lower volume thresholds. Disclose bank product fees to clients in writing before preparation — this is a consumer protection requirement in most states.
Preparer Advances and Cash Flow Management
The most valuable feature for new preparers beyond basic bank products is the preparer advance — a credit facility offered by TPG and EPS that fronts your preparation fees before IRS processing based on your enrolled bank product volume. If you have 50 returns enrolled for bank products at $250 each, a preparer advance might front you $5,000–$8,000 in January before any of those refunds arrive — helping you cover marketing costs, software fees, and operating expenses during peak season cash flow. Interest rates on preparer advances are typically low because they are secured by committed bank product volume. Apply for preparer advance programs when enrolling for bank products in October.
RECOMMENDED TOOLS
TPG Tax Products Group
Largest bank product processor — Refund Transfers, preparer advances, and software purchase advances integrated with Drake, CrossLink, and TaxSlayer Pro
EPS Financial
Bank product processor with competitive fee splits and strong customer service — Edge cashback program for high-volume preparers
Refundo
Bank product processor with mobile check printing for unbanked clients and faster customer support response times
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FREQUENTLY ASKED QUESTIONS
Are Refund Anticipation Loans still available through bank product processors?
True RALs — where the bank funds the loan before the IRS issues the refund — were largely discontinued by major processors after 2012 regulatory pressure. What most processors now offer are Early Refund Advance products that are technically loans but funded after IRS acceptance (not before IRS release of the refund) and branded as advances. These carry no interest to the client in most structures. True same-day RALs are still offered by a small number of specialty processors in select markets.
What fee can I charge clients for a Refund Transfer?
The bank product processor charges the client their service fee (typically $39.95–$44.95). Your preparation fee is separate and is set by you — you are not limited in how much you charge for preparation. However, some states have passed legislation capping or regulating bank product fees charged to consumers; check your state's consumer financial regulations before setting bank product add-on fees beyond the processor's standard charge.
Can I offer bank products if I am in my first filing season with no prior return volume?
Yes, with caveats. Both TPG and EPS have new preparer enrollment programs that do not require prior return volume. However, your preparer advance limit will be lower than for established preparers, and some volume-based incentive programs require a minimum prior-season return count. Apply directly with both processors in October and compare their new-preparer terms.