Receiving your tax refund as fast as possible is preferred by most Americans, but that's especially true for those who file late. According to the IRS, seven out of ten refunds were received in the form of a direct deposit last tax season. But did you know direct deposits aren't just for traditional checking accounts?
Receiving your tax return on a prepaid card is a great alternative for those who don't have a traditional checking account and don't want to wait for their check via snail mail. Below is a list of prepaid debit card options available for those who want to receive their tax refund quicker, in the form or a direct deposit. Some even offer a cash back bonus if you have your refund deposited onto their prepaid card.
Get Your Tax Refund Faster
It's important to keep in mind that you won't receive your tax refund faster with any of the below prepaid offers because they have some special relationship or partnership with the IRS. The refund may be received faster because direct deposit will always be faster than a paper mailed check.
Most of these prepaid offers require the name on the card account to match the name on the tax refund, so if you filed a joint tax return, make sure both of your names are on the account. Some will come with additional fees to process the transaction and spending limitations, which may sway you one way or another on which card to choose.
NetSpend Corporation has a few cards that promote a faster refund including:
• ACE elite Visa Prepaid Card
• NetSpend Visa Prepaid Card
• Pink ACE Elite Visa Prepaid Card
These prepaid cards will allow you to get your money up to two days faster with direct deposit.* There is no fee to receive a direct deposit, but the name on the card must match the name on the tax refund. If it does not, you will need to get another card in the appropriate name, which comes with a service fee of $3.95 ($9.95 for NetSpend Visa Prepaid) for the secondary cardholder. There may be other fees associated with the transfer of funds, depending upon the method used.
The Account Now Prepaid Card promises a fast refund with ezTaxReturn.com. Account Now is also running a sweepstakes now through April 30, 2015, giving consumers a chance to triple their tax refund. There are three ways you can enter to win, one of which is by directly depositing your federal or state tax refund. Read the official rules for eligibility requirements and more information.
The Readydebit Platinum Visa Prepaid Card also states that consumers can deposit their tax refund onto the card, which are FDIC insured up to $250,000, and comes with credit monitoring. The bank routing number and Account Number can only be used for authorized ACH debit transactions, and not for debit transactions that are converted into a paper check, check-by-phone, or other item processed as a check.
Receive Bonus Cash Back With Direct Deposit
Some prepaid cards offer a cash bonus for those who directly deposit their tax refund. Those who are current RushCard members or those who would like to apply for a prepaid Rushcard, you'll receive your tax refund up to two days faster. Cardholders will also receive $20 cash back when they directly deposit their tax refund. With Visa Zero Liability Policy, your funds will be protected if your card is lost or stolen.*
Cardholders will need their routing number and account number in order to perform the deposit. The name on the tax return needs to match the name on the account. There is a spending limit of $2,500 on all POS and ATM transactions within a 24-hour period. Read the full terms and conditions for fees and additional details. Check out the available RushCards by visiting our website.
TurboTax & State Refund Options
If you filed with TurboTax, you can receive your tax refund on a NetSpend Premier Prepaid Card. When filling out your taxes with TurboTax.com, simply select to receive your refund on a NetSpend Premier Visa Prepaid Card and the card will be delivered by snail mail for you to activate and use.
Those residing in the state of Virginia already have the convenience of a direct deposit. Since tax year 2012, all individual tax refunds are issued in one of two ways; as a direct deposit into the tax payer's bank account, or they may opt to receive a debit card, the Virginia Tax Refund Debit Card. The Act was passed to reduce printing and postage costs, but also seems to put an end to lost or stolen paper checks sent via snail mail. States such as Connecticut, Georgia, Louisiana, New York, Oklahoma, and South Carolina allow taxpayers to receive their state tax refunds on a prepaid debit card issued directly from the state. Check with your state's tax or revenue department online to find out.
Some states have also rejected tax returns filed electronically through Intuit (TurboTax.com) due to recent fraudulent activity with the program. This only affected state tax returns and not federal returns.
This article originally appeared on blog.comparecards.com: Get Your Tax Refund with Prepaid Credit Cards.