retail

Walmart Targets Bankless Tax Filers

WalmartBuildingWalmart, which has been rapidly expanding its financial services offerings aimed at lower-income Americans, is readying a big push linked to looming tax season.

The Bentonville, Ark.-based retailer says it plans to double the number of in-store kiosks from tax preparers Jackson Hewitt and H&R Block the week of Jan. 16-22. And for those filing federal Form 1040EZ, Jackson Hewitt will offer free filing at its Walmart kiosks throughout the tax season, while H&R Block plans to do so through Feb. 29. (H&R Block intends to have some 250 kiosks in Walmart, while Jackson Hewitt is beefing its count up to 2,800.)

The retailer is also stepping up promotional efforts around its $3 and $6 check-cashing, which it says can generate substantial savings for people without bank accounts each year. (It estimates some 60 million Americans fall into this “unbanked” category, using money orders and check-cashing services instead.)

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“Over the next two weeks these underserved Americans will file their taxes and start cashing approximately $31 billion in tax refund checks,” Daniel Eckert, Walmart’s VP of financial services, says in its release. “Sadly, so many providers stand to capitalize on these individuals by charging between 1 and 3% percent of the total refund to cash the check. The average tax refund is $2,902, which means Americans could spend up to $90 just to receive their tax refund.”

The FDIC estimates that in addition to the 9 million unbanked households, another 21 million are under-banked -- which means that while they have a checking or savings account, they also rely on alternative financial services such as non-bank money orders, non-bank check-cashing services, payday loans, rent-to-own agreements, or pawn shops at least once or twice a year, as well as refund anticipation loans at least once in the past five years.

Among the services Walmart offers are walk-in bill-paying services for utilities, mobile phones, starting at 88 cents, as well as a Walmart MoneyCard, a reloadable prepaid debit card. MoneyCard customers can deposit their paychecks on the card, check balances, pay bills, shop online, and use the card as a Visa or MasterCard.

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