Drake Software blog for tax pros, covering tax, IRS news, and more

Looking for Bank Product Solutions?

Looking for Bank Product Solutions?

For more than 20 years, use of bank products have grown tremendously. Not only do bank products provide a simple solution for taxpayers to pay for their tax-preparation fees out of their refund, but they also act as a marketing tool to help drive customers through a tax preparer’s doors.

e-Collect, introduced to the marketplace in 2010 by EPS Financial, LLC, received rave reviews after just one year. In that first year, EPS processed over $750 million through its system. Preparers looking for a competitive advantage were able to offer bank products for as little as $5.00 per product.

“We found that many tax preparers who did not offer bank products in the past were pleasantly surprised at how easy it was to process an e-Collect product and have tax-preparation fees deducted from taxpayers’ refunds and direct-deposited into their bank account,” said Clark Gill, President of EPS Financial, LLC. “We don’t know of any less expensive and more streamlined program than e-Collect. What was interesting was how many tax-preparer partners moved away from RALs (Refund Anticipation Loans) in favor of a “price-sells” theory. To be able to let your customers know that you can provide a bank product solution at prices so much lower than other competitor programs had driven business and been used as a viable competitive advantage.”

One preparer who used EPS stated, “I have previously worked with other financial institutions to provide clients with refund options. However, it is my opinion that the e-Collect program is by far the best option in the market. [EPS offers] the best price and lowest prices for the customers—which keeps them happy and coming back.”

The e-Collect program allows taxpayers to choose from three options to have their refund proceeds disbursed to them:

  • Directly deposited into their own bank account
  • Loaded on an E1 Visa® Prepaid Card  (an instant-issue card provided in the tax preparer’s office)
  • A check printed in the tax preparer’s office

For those offices that are new to bank products and have customers who are typically banked,  e-Collect Basic has been a successful solution. e-Collect Basic is direct deposit only, allowing the e-Collect system to directly deposit tax-preparation fees into the preparer’s bank account. The remaining refund proceeds go directly to the customer’s bank account.

For those offices already involved in bank-product programs, e-Collect Deluxe and e-Collect Elite have been good options. e-Collect Deluxe offers direct deposit to the customer’s account and allows the preparer to print, in the office, a check for the refund proceeds less tax preparation fees (which are directly deposited into the tax preparer’s account).

e-Collect Elite offers all three disbursement options for your customers: direct deposit into the taxpayer’s account, the E1 Visa® Prepaid Card, and a check that can be printed in the office.

Regardless of the option selected, the preparer receives all the necessary supplies—such as check stock and instant-issue E1 Visa Prepaid Cards—well before tax season begins. EPS has a reorder process so preparers can replenish supplies as needed during the season. With all options, preparers may also charge for the forms associated with
the e-Collect program.

The Costs of e-Collect products

Visit us online at http://www.epsfinancial.net/

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