Jackson Hewitt Teams with BillFloat On Credit Lines
Through a new partnership with BillFloat, Jackson Hewitt Tax Service will have a product which will allow its customers to access cash during the upcoming tax season.
Now we have a better idea of how the company will replace its refund anticipation loans. It is also a coming out of sorts for BillFloat, a California company that has carved out a niche in bill payments via relationships with several large companies that want to reduce loss rates on retail receivables. BillFloat has never worked in the tax channel, though, and in doing so it means that the company is about to assume a much large place in alternative financial services. operated on this scale.
Here are the basic terms of the product: The “SmartLine of Credit” is a line of credit of between $200 and $1,000 bearing an APR of 35 percent. With each transfer of money from the line of credit, the account holder pays a draw down fee equal to the greater of three percent of the amount transferred or ten dollars. The product lets borrowers have access to the line for as long as a year, provided that they stay current with monthly minimum installment payments. Customers pay a monthly maintenance fee of $6.95, regardless of the outstanding balance. There is a $35 fee for missing a scheduled payment. Do the math: here are the differences in costs between the SmartLine and a RAL:

Cost of BillFloat vs. prior year RAL at Jackson Hewitt. In this example, cost in 2nd month (excepting repayment) at BillFloat is $12.78 for $200 and $33.12 for $1,000. A RAL is a one-time transaction, so there would be no additional fees save for the ongoing monthly prepaid and additional ATM fees.
You must file your taxes with Jackson Hewitt in order to apply for a SmartLine of Credit.
The actual proceeds of the advance come from Golden Pacific Bancorp, a small California bank with $11.8 million in assets.
At what scale?
In 2012, Jackson Hewitt’s competitor, Liberty Tax, prepared 1.8 million returns. For the lack of publicly-available data from Jackson Hewitt, I will extrapolate on likely pickup of BillFloat from Liberty’s data. Like Jackson Hewitt, Liberty has sold bank products to a high share of its customers, and like Jackson Hewitt, it was prevented from doing as many RALs last year because of the same regulatory headwinds. In 2012, Liberty prepared 1.8 million returns. According to Liberty’s annual report, 51.5 percent of those filers purchased a bank product. That translates into 927,000 RACs and RALs. However, with the scarcity or RAL money in 2012, only 4.5 percent got the latter. Demand was probably still there, as the share of RAL usage was almost three times higher as recently as 2010.
Imagining that Jackson Hewitt can deliver from a similar set of consumers with the same expectations for quick refund money, then possible uptake is very high. Jackson Hewitt is even larger than Liberty, as they prepare about 2.2 million returns annually. Thus, demand for bank products at Jackson Hewitt could reach as high as one million returns. If half of the consumers that might have formerly been RAL buyers apply for a BillFloat account, then BillFloat could be processing requests for as much as $50 million in lines of credit.
Traditionally, BillFloat has paid bills on behalf of account holders directly to its partner companies in exchange for fees and interest. But the SmartLine of Credit could be the trigger for a rapid rate of growth. At this moment, the company has 43 employees, but they are hiring five people every week for customer service, data analytics, and product management.
“Our office has grown from being an eight thousand square foot space with enough extra room to have a bowling alley,” Gilbert said, “to one where we don’t have room to play marbles.”
BillFloat says that some people will be turned down and that others may only qualify for a smaller credit line. So, unlike the case with a RAL, getting an advance on a return filed at Jackson Hewitt will by no means be automatic this year.
To apply in the store, consumers are asked to supply their email address, their Social Security number, a bank account with routing numbers, and date of birth.
The consumer will tap the advance from their existing bank account – and not with an account at Golden Pacific. Golden Pacific originates the line, but the spend occurs through a bank. Furthermore, the system has some means of filtering out accounts on prepaid cards.

lolita smith
January 11, 2013
why can’t I get the loan I have a checking account with regions. bank
Adam Rust
January 11, 2013
What has happened? Did you file your taxes with Jackson Hewitt, then apply for the product and complete the account set-up?
Brenda Frolos
January 11, 2013
How long does it take to get money can I use my regions bank now card I have a acct number n a routing number or I’m on a saving acct for my daughter can I use it
Adam Rust
January 11, 2013
You will not be able to use a Regions Now Card, even though it does have a routing number. The SLOC is not set up to work with prepaid cards.
ray freeman
January 14, 2013
i am having problems getting on home.billfloat.com cant even get to website or find right one . have active billfloat account also . received partial loan .did not get rest of my loan only got half of my amount due and trying to get the rest . iwent through jackson hewitt also
Adam Rust
January 14, 2013
Thanks, Ray. Other people are having trouble with their Smart Line of Credit, as well. You can see the other comments. I know that some of their executive-level leadership reads this site so they may try to reach out to you. Could you be more specific about what happened? How much did you expect to receive?
Karen
January 14, 2013
We bank with First American Bank in Oklahoma, and couldn’t proceed because our bank is not eligible?
Is there a list of banks available to the public that are accepted by Billfloat?
Adam Rust
January 14, 2013
Interesting. Is your account a prepaid card account, a savings account, a debit card without checks, or a checking account?
Karen
January 14, 2013
It is a checking account, with a check/debit card. No paper checks
Adam Rust
January 14, 2013
Karen, Ray, and Brenda:
I will reach out to their staff about this.
By the way, if anyone else out there is reading this exchange and has their own need for resolution, please let me know either in a comment or via email.
michelle perez
January 14, 2013
I filed my taxes today and when they tried for a line of credit through bill float it would not work. I have an account already will bill float when i was inquiring about it years ago but never used it. So when i filled in the required fields it recongnized me but when i would go to click continue to go to the next page it would just sit there and never went anywhere. I stayed at jackson hewitt for an hour, we even called bill float but no one would pick up. Very disappointed…
Beth
January 14, 2013
I have been trying to apply with billfloat for a while, but it keeps getting stuck at “we can’t approve you at this time, unexpected system error” when I enter bank info. We use TD BANK, is it not supported or is this just an error? Thanks
Adam Rust
January 14, 2013
Michelle —
The fact that you have a Bill Float account already, but that it would not work at the Jackson Hewitt makes me think that the issue is with something on the Jackson Hewitt end.
To Beth\’s question above, TD Bank should work. The only hold up should be with a prepaid card.
Michelle Perez
January 14, 2013
Hi Adam,
I have tried a couple of times through my tax manager on the jackson hewitt website. It will not get further than my personal information, when i click continue it just sits there and won’t go to the bank information. Jackson Hewitt says it isn’t there side, they have been having trouble with everyone. I called Bill Float and they said they are having techinal difficulties
Just sad, they are offering this new line of credit and the bugs aren’t worked out.
Sharita
January 14, 2013
We use tcf bank in Minnesota and it say it doesn’t accept our bank.
Sharita
January 14, 2013
I tried it again and it is saying our application can not be processed at this time because of system errors and to try again later.
Jovan Scott
January 14, 2013
Same thing is happening to me our bank is wells fargo and its not excepting is this a scam or what?
kevin peters
January 14, 2013
ive been approved for the billfloat loan but cant get any information on when the money will arrive in my account;need money asap please respond
Yolanda Graham
January 15, 2013
I been trying for weeks to get the loan and bank vertication is not working
Theresa
January 15, 2013
I applied Sunday night, which stated I was approved, a d that I was going to get a confirmation email….never received anything in regards as far as an email goes. There’s no way to see that on here either like a summary transaction, like other pages. If someone can get back to me???
Adam Rust
January 15, 2013
BillFloat is answering my emails, but Jackson Hewitt\’s phone center is a stone fortress. The BillFloat CEO is monitoring this site.
I am hearing several problems: Some banks are not willing to take these advances, in some instances there is no verification, and sometimes the applications are not even processing.
Ed
January 15, 2013
you should have just gone to Liberty Tax. I had my taxes prepared and they actually hand you a REAL $50 bill. Also I referred 2 friends and they got 50s and she handed me another $50 for referring. I have $100 instant cash in my pocket
Adam Rust
January 15, 2013
Sounds like a good refund loan substitute!
Michelle
January 15, 2013
I attempted to apply the first day it was available and ran into all types of problems. The application finally went through about a week later and they told me I was denied because I had too many inquiries within the last 90 days. However, this is the first loan I have applied for in over a year. I am wondering if every time I tried to complete the application, although it froze on my end, it actually still checked my credit. That is the only thing I can think of. Customer service is a joke. They can’t answer any questions. The only answers I received was “the website should be working later on tonight or tomorrow and keep applying”
Sharon
January 15, 2013
I’ve been waiting for my ‘bank verification’ for 2 whole hours at ‘www.billfloat.com/jh’. I now see it isn’t my computer. Jackson Hewitt should stop referring Billfloat, makes them look bad.
james
January 15, 2013
tried to set up for loan .cant even get in to apply typed in email and password wont open anything .begin to think this big joke.
Tom
January 15, 2013
Is there a link to apply for this smartline of credit or a phone number
Paula Killion
January 16, 2013
I submitted an application online last wednesday and was approved for $350 and was given a payback date, but I have yet to receive the money in my account. I have not received an email from billfloat/smartline either. Please help
Adam Rust
January 16, 2013
You have to get it at a Jackson Hewitt office and you have to do your taxes with Jackson Hewitt in order to apply for the product.
Adam Rust
January 16, 2013
Did they say that you would only get the money was your return was accepted with the expectation of a refund? Yes, I was under the impression that you could get the advance in two to four days.
kim
January 16, 2013
I also have tried for two weeks to get this loan at the first week and a half if would freeze at the bank verification.. now it says the is a tecnical error.. when I tried under my husband it says my bank isn’t supported I go though sefcu and am confused to how it worked on mine and says the bank isn’t supported on my husbands…
Paula KIllion
January 16, 2013
I went to the Jackson Hewitt office and inquired about it but the individual told me that they didn’t have anything to do with it and that I needed to contact smartline/billfloat and they did not have a number for them.
Bobbie
January 16, 2013
Hello everyone!!! Just to let you know Jackson Hewitt refers this just to help you out. It is not up to JH to approve you or not. You don’t have to do your taxes to apply for this line of credit so that is not true. Also it takes 3 to 5 buisness days to go to your account. The number for billfloat is 1-877-369-6481 that is the customer service line.
Alexandria
January 16, 2013
I went to jackson hewitt today an i try to apply for the bill f credit theyre sayin my bank is not available to participate i have first merit bank is this a scam or what thi$ is not a prepaid bank at all can someone please respind to me asap
Alexandria Soriano
January 16, 2013
I went to jackson hewitt today where i been filing wit them for the last 3 years i sign up for the bill float credit but there sayin my bank do not quafity why is that i am a first merit customer an this is not a prepaid account can someone please tell me whats goin on
Adam Rust
January 16, 2013
Alexandria —
This is amazing, surprising…
I am yet to get a comment on this board from anyone that has been able to get the BillFloat SmartLine to work.
Anyone?
Jena
January 16, 2013
I too was approved on Monday for $500, even printed the “Your all set” the funds will be in your back account in 3-5 days. However, when I call they have no record of me, and when I’m able to log in to the home page, noting about the supposed deposit. I have the same question, has anyone ECER received money from Billfloat? If not ill happily go elsewhere!
Chris
January 17, 2013
billfloat told me 2 hours ago they are having technical problems and had no idea if or when we would get my wifes loan she was approved for $750 and only asked for $500. i have been fighting with them for 3 days. enough is enough. they are not off to a good start. further more they also informed it has been this way since day 1
ollie griffin
January 17, 2013
I also, applied for this load .I think this is a scam trying to get our bank info for they can get our money. Scam all over this.Dont make me call my local news. Because chanel 2 will get to the bottom
Adam Rust
January 17, 2013
Did they tell you more about what technical problems they were having, specifically?
Did you go through Jackson Hewitt or were you going through the traditional BillFloat site?
Kizzie Castille
January 18, 2013
If no one recieved no money from these people even after they said u were approved for it n it’s been more than 3 days then its just a scam I wouldn’t trust them with my information
Marie
January 18, 2013
I believe this is a scam. I am just going to go to HR Block and get there emerald card and there new Emerald gold card.. Should have work out the bugs before offering this.. They lost a customer and I am just going to go to HR Block..
Monica
January 18, 2013
They said the computer crashed and the banks have not been able to get the system up running again.
Chris
January 18, 2013
after a long 1 hour wait on hold then a call back from another cell phone that the number given to call is just a call center and they can do nothing to help. they only email the problem to the finacial department and they handel the transfer. i was also informed by billfloat that they tryed to send it twice to my bank and it was rejected. problem is my bank has no record of any such action. furthermore they are taking monday off for the holiday. with the problems there having they need to be at work. they also dont care if you call the better business bureau.
Malissa Sterling
January 21, 2013
My Wright Patt credit union was not a qualified bank either
lisa robinson
January 21, 2013
wat website do i have to applie at to get your loanthough jackson hewitt
lucretia
January 21, 2013
having an issue with billfloat keep getting the same response not able to recognize you . As a jackson hewitt customer i was looking forward to the ral at least i was approved without any problems. Starting to question all these tax preparer companies motives. People loook forward to getting their money early not having to wait for a whole month!!!!!!
cynthia Jones simmons
January 22, 2013
hello.my tax person at Jackson Hewwitt stated i could appy for a 1000 loan.how can i go by doing so
Adam Rust
January 23, 2013
You have to go into a store and do your taxes before you are eligible to apply for the SmartLine of Credit.
paulna
January 26, 2013
from what am reading this web page seem like its a scam. i file yesterday. she put my info in. it said to tried again. as i get home i tried more than a dozen time. i can even get to the same page. with everything am reading. i think i minus just wait for my money. instead of losing partial of it.
Denise B.
January 27, 2013
when is the deadline for this line of credit?
Timothy Yankee
January 27, 2013
Nothing works and the cust service is stupid. Error when I put in bank info. Told me there fixing it try next day. Didnt work, Told me to close my account and try again in 24 hours. Now when I enter my citizens bank info it recognizes it as a completely different bank and cause its wrong guess what… an error. Annoying and no one responds to errors
Timothy Yankee
January 27, 2013
And btw Jackson Hewitt has nothing to due with it. Smartline.billfloat.com that was the site on there computer. Dont even need to do your taxes through them. Most locations have a computer designated to it. If you go to billfloat.com there customer service will help out better than the number Jackson hewitt gives you
Timothy Yankee
January 27, 2013
And it ain’t a scam owned by PayPal. Just high rates for crap
john
February 1, 2013
I am sure http://www.paypal.com it self is a big scam.
Melanie
February 1, 2013
I called Jackson Hewitt 3 or 4 times last week because I was having problems applying for the smartline loan. Jackson Hewitt repeatedly informed me that I was not able to go to any of there physical locations to apply and that I didn’t have to file my taxes with them that I’d have to apply on Jackson Hewitt website through my tax manager. I had tried doing this a few times last week and twice this week. It would pull up the application but it wouldn’t let me get past entering my basic info. Now every route I go instead of being told over and over that I CAN’T go to there store and apply I’m being told that I DO. Also, and now when I go to Jackson Hewitt website and go to my tax manager its not bringing up the smartline application anymore. It’s not even showing the smartline application link period anymore.
Rachel
February 1, 2013
I believe this to be a scam to get into people’s bank accounts. Since no tax company is able to give out loans this year there is probably millions of people trying to get this loan through Billfloat. This company asks for your bank online password, but says its “not required” and Billfloat states you’d be more likely to get approved if you supply it. So more then likely most people are giving them this information. There also saying they can’t except certain banks. Has anyone thought maybe the banks there not excepting have higher security precautions then the ones they will except. With this company having access into millions of people’s bank accounts they could take a few cents out of every single bank account and it would prob go unnoticed for awhile, or not noticed at all. If this company did this they’d end up with a very decent chunk of money. I have no idea if this could be true or not. I’m saying it because myself among a bunch of others got scammed for some money through a supposed loan company that was being advertised in major and popular newspaper where I live at. The newspaper company even does checks on people and companies that want to advertise certain things in there people. I just wrote this to give people a diff point of view to think about when applying for this loan, in no way at all do I know if this is true or not.
john q
February 4, 2013
i was going to try the billfloat but after the negative feedback i dont beleive i will thanks everyone for the info
Heather
February 8, 2013
I used bill float. I applied online even used a prepaid money network card from Walmart and received my money in 3 days. I received the money weeks before I filedmy taxes.
Adam Rust
February 8, 2013
I am glad to hear that it worked. You are the first commenter to leave a positive story about your experience. I\’m sure that the comment population biases toward those with negative experiences – that\’s just the nature of how we all run our busy lives. But I am intrigued that it worked with a MoneyCard. By the way, when did you apply?
Thanks for your comment.
Tina
February 9, 2013
I was approved for $750 and received $500. I too was told that they were having technical difficulties, when I tried to get the remaining $250.
Adam Rust
February 11, 2013
Are you likely to use the SmartLine as a line of credit for the near future – perhaps as long as for the next year – or did you apply for it only as a means some money early? This is one of the big questions surrounding the Smart Line.
steve
March 1, 2013
COMMENT TO FOLLOW TO ADAM RUST I HAVE BEEN SCAMED
sharon
March 16, 2013
I could never get through to any one.
Steve
March 22, 2013
my comment is How Do You Make Go Away dont make much since now but will
marge arnett
March 26, 2013
I applied yesterday and got an email congratulating me and that I was approved. Have been trying to access my smartline account on thier website but, after I log in I go directly to a screen that says we are processing your application and it stays there and doesn’t go any further. If I was approved as it said in the email why can’t I login to smartline and why does it say we are processing your application…I was under the assumption I was approved already?
latoya shepperd
March 28, 2013
I applied for this four months ago…I got half of it and cannot retrieve the rest of my funds, as soon as I log on.it tell me how much I have left…but can’t get it nor get n touch with them..but it’s crazy bc they r getting the money out of my acct every month…Do any one have any kind of contact info if these people..bc emailing them just isn’t working!!!!
What is airsoft
May 9, 2013
Oh my goodness! Impressive article dude! Many thanks, However I am experiencing troubles with your RSS. I don’t understand the reason why I cannot subscribe to it. Is there anybody else having similar RSS problems? Anyone who knows the answer can you kindly respond? Thanks!!
loan
May 13, 2013
The next time I read a blog, I hope that it doesn’t disappoint me as much as this one. After all, Yes, it was my choice to read through, however I genuinely thought you’d have something helpful to talk about. All I hear is a bunch of complaining about something that you could possibly fix if you were not too busy searching for attention.