Walmart launches in-store tax refunds in cash

Walmart is hoping to increase the cash in in-store shoppers’ wallets this year by offering a new tax refund service.

Direct2Cash is a way for customers to collect their tax refunds in cash at stores this tax season. The service is an alternative for taxpayers who otherwise might get refunds via check or direct deposit.

“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 their refund check to arrive and then spend money on unnecessary fees -- in many cases upwards of $70 -- to cash it,” said Daniel Eckert, senior vice president of services for Walmart U.S. “By skipping the check and choosing this new service, customers will not only save time, but also keep some extra cash in their pockets -- two things Americans can always use more of.” Eckert also said the service is targeted mostly at customers who don't have bank accounts.

Walmart has an agreement with 25,000 tax preparers to arrange for the in-store refunds. Walmart says it won't charge customers any fee to pick up the cash at its stores, but that tax preparers may charge up to $7 to arrange the payment.

The service is not available to taxpayers who prepare their taxes online themselves.

The average federal refund check this year will come to $2,900, according to Eckert. Walmart will hand out cash refunds of up to $7,500.

Jackson Hewitt tax preparers will once again be in more than 3,000 Wal-Mart stores nationwide this tax season. Jackson Hewitt is offering its eligible clients a $50 Wal-Mart gift card when they e-file through a Jackson Hewitt tax preparer.

Walmart is working with Tax Products Group and Republic Bank & Trust, two leading providers of tax-related financial products and services, to provide Walmart Direct2Cash as an option to millions of customers.

“Walmart Direct2Cash is a groundbreaking new service that reduces the cost and complexity of the refund process for taxpayers and tax preparers,” said Bill Maher, CEO of Tax Products Group LLC. “The response from tax preparers has already been incredibly positive. They believe this will not only simplify the tax refund process but provide a great benefit to taxpayers.”