In an attempt to further integrate itself into the financial industry, Wal-Mart is offering consumers the option of picking up their tax refund in cash at 3,000 Wal-Mart locations. The offer targets consumers who may not have a bank account and primarily use cash for everyday transactions. For this group, the effects of a delayed tax refund (as is expected this year) would be especially significant. The service is hoped to help consumers get their money quickly and reduce check-cashing costs.
Daniel Eckert, senior vice president of services at Wal-Mart U.S. says,
We know tax refunds can be one of the largest financial payouts of the year for many of our customers, and the last thing they want is to wait for a refund check to arrive and then spend money on unnecessary fees.”
When manually filing their taxes at one of the 25,000 tax preparation locations, taxpayers can choose to pick up their refund inside a Wal-Mart store. The return will then get released to Tax Products Group (TPG) or Republic Bank & Trust Company- the two banks Wal-Mart is partnering with for the initiative. From there, the taxpayers will be emailed by the bank notifying them the refund is available. A refund of up to $7,500 can be picked up in person at any store Money Center or customer service desk.
While Wal-Mart will not be charging fees for cash pick up, tax preparers can charge up to $7 for the service when filing. The service will not be available for people who electronically file their taxes or those who do their own taxes.
Read more here- “Walmart to Offer Cash Pickup for Tax Refunds,” (The Associated Press, The New York Times)