What Are Bank Products?
Bank products are financial services tax professionals offer to help clients access their refunds faster and help pay for tax prep services. These products are typically facilitated through third-party banks and are fully integrated into your professional tax software.
Common bank products include:
- Refund Transfers (Pay‑by‑Refund)
- Refund Advances
- Prepaid Debit Cards and Disbursement Options
Why Offer Bank Products in Your Tax Office?
Here are some reasons tax preparers choose to offer bank products:
1. Make Your Services More Accessible
Many clients hesitate to pay for tax prep services upfront. With refund transfers, they can pay your fee directly from their refund — no out-of-pocket costs needed.
2. Attract More Clients
Offering bank products can be a competitive advantage. Clients might be more likely to choose a preparer who provides flexible refund and payment options.
3. Streamline Your Payments
When clients use refund transfers, your fee is automatically deducted from the refund and deposited to your account. This simplifies collections and reduces the risk of unpaid invoices.
4. Improve Client Experience
With prepaid cards, direct deposit options, and even refund advances, you’re giving clients flexibility and faster access to their money — increasing satisfaction and loyalty.
How Refund Transfers (Pay‑by‑Refund) Work
A refund transfer, also known as Pay‑by‑Refund, allows clients to:
- File their taxes without paying you upfront
- Have your prep fee automatically deducted from their IRS refund
- Receive the remaining balance via check, direct deposit, or prepaid card
You, as the preparer, get paid directly by the bank when the refund is issued, making it seamless and secure.
Refund Advances: Fast Cash for Clients
Refund advances are short-term loans backed by a client’s expected tax refund. They allow clients to get funds within 24 to 48 hours — often before the IRS even processes the return.
With no interest in many cases, these products appeal to clients facing urgent expenses or those eager to get access to their funds.
What to know:
- Approval is typically based on expected refund and bank partner guidelines
- Drake’s integrated setup allows for easy processing within the software
- You can offer refund advances without risking your own funds
Disbursement Options That Meet Every Client Need
Through bank products, you can offer multiple refund disbursement methods:
- Direct deposit to a personal bank account
- Paper check printed in-office or mailed
- Prepaid debit card, a popular choice for unbanked or underbanked clients
These flexible delivery options help improve convenience and client satisfaction, especially in underserved communities.
Best Practices for Tax Pros Offering Bank Products
Want to help drive success with bank products in your office? Keep these tips in mind:
- Start early: Complete applications before January to avoid delays
- Train your team: Make sure your staff understands how to explain options and fees
- Promote your services: Advertise refund advance and Pay‑by‑Refund options to attract clients
- Educate clients: Use printed materials or email templates to explain how refund transfers work
Drake Software’s Integrated Bank Product Solutions
Drake Software makes offering bank products simple. Here’s what you can expect:
Easy Setup
Drake’s interface walks you through enrolling with a bank partner, completing necessary forms, and activating refund transfer or advance products in your software.
Trusted Bank Partnerships
Drake partners with leading financial providers to promote secure, compliant, and fast service — including EPS Financial, TPG (Santa Barbara), and others.
Seamless Client Experience
Clients don’t need to visit multiple platforms. Their bank product experience is fully managed through your Drake workflow — from refund filing to disbursement.
Need Help? Drake offers a helpful bank partner comparison chart and a full guide for new users.
Bank products are more than a client convenience — they’re a powerful tool to help expand your client base, get paid faster, and enhance your professional offerings.
To learn more about Drake Bank Products, please visit our bank products page.
