Integrate Pay-by-Refund into your payment platform.
$0 cost to taxpayers.
Your clients can enjoy the ease of paying fees straight from their refund with no out-of-pocket costs.1
Benefits that add up
In demand
Today’s consumer prioritizes convenience. Drake Refund Pay will help attract new clients to your tax business with an option that allows them to pay for tax preparation fees with their refund, while simplifying your collections process.
Cost-effective
Each transaction is a flat $10 fee, paid by the tax preparer, at no cost to taxpayers. Fees are comparable to credit card transaction charges.2
Financial flexibility
More payment options give taxpayers greater flexibility when it comes to paying tax preparation fees. This leads to an easier, smoother payment process for tax preparers.
Give your customers more options
Taxpayers want to choose the payment option that works best for them. With Drake Refund Pay, you’re offering an easy choice that will appeal to a range of clients.
Start offering Drake Refund Pay to clients3
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Apply for Drake Pay |
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Add Drake Refund Pay as a payment option |
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When you request payment, your clients will be able to choose it from available payment options |
Enroll in Drake Refund Pay FREE
Want to learn more?
Simply fill out this form or contact our team at (800) 890-9500 and a specialist can answer your questions.
Frequently Asked Questions
Drake Refund Pay is a payment method that provides tax professionals with a simple solution for collecting their preparation fees by automatically deducting them from their client’s IRS tax refund at no additional cost to the taxpayer. This approach makes the payment process easier and more efficient for both parties. .
First, you must enroll in Drake Refund Pay here. You can conveniently enroll in Drake Pay™ credit/debit processing and Drake Refund Pay in one application. After you are enrolled, you can utilize the Request Payment functionality built into Drake Tax, in which your client will receive a secure payment link where they can elect to pay outstanding preparation fees from their federal refund via Drake Refund Pay. For more information about sending convenient payment requests with numerous payment options within Drake products, see Drake Pay.
You can offer Drake Refund Pay to your clients when their tax return is completed and ready for e-filing but has not yet been e-filed.
After sending a payment request from Drake Tax, the taxpayer will receive a link to your firm’s payment page. On the payment page, the taxpayer will be asked to consent to check eligibility for Drake Refund Pay. If the taxpayer is eligible and elects it as the method of payment, the taxpayer must also consent to share their data with the Drake Refund Pay processor and sign an agreement to allow the payment of your fees out of their refund.
The transaction then will be facilitated by our partner bank, Pathward. Once the taxpayer’s refund is received by Pathward from the IRS, the tax prep fees will be deposited in the tax preparer’s bank account (net of transaction fee) and the remaining refund will be deposited in the taxpayer’s bank account.
There are several factors that are used to determine if the client is eligible for Drake Refund Pay (e.g., refund amount must be greater than tax prep fees). In the payment workflow, after the taxpayer consents to check eligibility, Drake Pay automatically determines eligibility and presents Drake Refund Pay as a payment option alongside other payment options if the taxpayer is eligible. If the taxpayer declines consent or is not eligible, Drake Refund Pay will not be presented as a payment option.
There is no fee charged to the taxpayer. There is a $10 fee charged to the tax preparer, similar to a processing fee associated with a credit card payment. For Pay-by-Refund options where the fee is paid by the taxpayer, see our bank product offerings.
Refunds (net of preparation fees) will be direct deposited in a bank account specified by the taxpayer.
No, you must either enroll in Drake Refund Pay or bank products through one of our partner banks. If you are interested in offering advances or other features to your customers, see our bank product offerings
For additional information, please reach out to our team at (800) 890-9500 and a specialist can answer your questions.
DISCLAIMERS
1. Each transaction is a flat $10 fee, paid by the tax preparer, at no cost to taxpayers. Fees are comparable to credit card transaction charges.
2. For a $350 tax preparation fee, the standard credit card processing fee with Drake Pay credit card processing would be $10.23
3. Drake Refund Pay is offered through Pathward Financial, Inc. Enrollment is subject to approval. Eligibility is limited to customers not currently enrolled in a program with a Drake bank partner. Transaction fees apply and Drake may earn a fee from Pathward.