About TRX Financial Services
The need for Financial Services Processors in the Income Tax Return industry has made a huge impact on the Independent Tax Preparers to compete with the "Large Franchise Tax Preparation Offices", you could almost consider it a monoply at this point. In the past the software cost vary not so much on the quality or functions of the software but on the amount of bank products done by the office. Generally a software company will get a rebate from the bank and a transmission fee from the taxpayer, along with a Minimal software license fee from the Tax Preparer. Bank Rebate $8.00 per Bank Product Transmission Fee $20.00 on Bank Products Software License Fee $995.00 annually With the average tax office doing an average of 150 bank product returns per year let’s do the math: Bank Rebate $8 x 150 = $1,200.00 Transmission Fee $20 x 150 = $3,000.00 Annual Software License $995.00 = $995.00 Total = $5,195.00 As you can now see the average cost of income tax software is $6,398.33. But let’s carry this step further H&R Block is said to do 1 in every 7 returns done. H&R Block would be in the same segment of this industry along with all the independent tax preparers in the industry. Also in this segment are the large franchise tax preparation office which includes H&R Block, Jackson Hewitt, Liberty Tax Service and more. If you are interested in taking a bite out of the "Large Franchise Offices" you may want to look at our teammate 1040 Financial Partners.
TRX Financial Services teaming with CitizensBank and 1040 Financial Partners are determined to ensure the Independent Tax Preparers are able to compete. TRXFS is able to offer not only No Fees Upfront tax preparation options, but other financial services allowing the Independent Tax Preparer to utilize their facility to make money year around.
This may enlighten you futher;
In 2009/2010 tax season there was Republic Bank, Chase Bank, River City Bank, HSBC (H&R Block Only) Banks and SBTPG, Refund Advantage, Advent, Atlas, EPS Processors.
The 2010/2011 tax season is rapidly approaching Chase Bank is out of the industry, Republic has limited their enrollment to no one doing less than 150 bank products last tax season is not allowed to enroll, SBTPG says they are doing RAL’s but will not put anything in writing read here, Refund Advantage is saying they are having RAL’s, Atlas, Advent, EPS and TRX Financial are doing RT’s only.
The 2010/2011 tax season may be the final season RAL’s are offered, if so the software companies are already developing partnerships with the current processors to create RT’s or what I refer to as pass throughs. The pricing thus far is between $55 and $70 per pass throughs.
