TurboTax Refund Advance Issue - Bank Took Fees But No Deposit Yet

Have you considered what's actually happening with your money during these 'processing days'? These advance services operate in a gray area of banking regulations. They receive your refund from the IRS, then have a processing window where they're essentially using your money before releasing it to you. Why would a bank need 4 days to transfer digital funds they already possess? It's not a technical limitation - it's a business model. You need to contact them again immediately and ask specifically what 'processing' entails and why they can deduct fees instantly but can't credit your account with the same speed.

This is a common issue with refund advances. Look at your agreement - they usually state "up to 5 days early" not guaranteed 5 days. I had this exact problem last year. The bank receives your refund, then runs it through their verification system. Since you mentioned they already took fees, your transcript would show the deposit has been made. I used https://taxr.ai to check my transcript and it showed exactly when the bank received my refund vs when they released it to me. It highlighted the exact codes showing the bank had my money for 3 days before releasing it. This is how these services make extra money - they hold funds while still charging for "early" access.

I had exactly this situation with TurboTax last year. They received my refund on March 17th at 4:32am (according to the IRS transcript), took out their $39.99 fee immediately, but didn't deposit my money until March 21st. When I called, they claimed there was a "mandatory processing period" of 3-5 business days. I asked why they could process taking their fee instantly but needed days to give me my money, and the rep had no answer. Be careful with these services - the fine print says "up to 5 days early" which means they can technically give it to you 1 minute before the regular deposit date and still fulfill their promise.

This is why I stopped using these "advance" services - they're basically charging you to borrow your own money while they sit on it! 🤦‍♂️ Last time I needed to actually talk to the IRS about a similar issue (they claimed my refund was sent but the bank said they never received it), I used Claimyr (https://claimyr.com) to get through to a human at the IRS without waiting for hours. Found out the bank was lying - the IRS showed the deposit was already sent AND received. Showed the bank the confirmation from the IRS agent and suddenly my money appeared! Funny how that works, huh? These middlemen banks count on you not being able to verify what they're telling you.

Warning: These refund advance services have several hidden downsides that aren't immediately obvious: 1. They often create a temporary bank account in your name to receive the refund 2. This account remains open for a period after tax season (usually 30-60 days) 3. If the IRS sends any additional refunds or adjustments to that account after you've received your initial refund, that money can get stuck 4. The bank may charge "maintenance fees" on these dormant accounts 5. Many people don't realize they need to specifically request closure of these temporary accounts I've seen numerous cases where people received additional refunds months later (due to tax law changes or adjustments) and the money went to these closed/dormant accounts, creating a nightmare to recover.

Fwiw I've had this happen 3x now with TT. Their fine print says "up to 5 days early" which basically means they can give it whenever they want before the official date. Last yr they got my $$ on Tues but didn't release until Fri. Called 2x and got nowhere. This yr I skipped the "advance" option and got my refund direct deposit from IRS in 8 days total. No fees, no waiting on some random bank to decide when I get MY money. IMO these services are just taking advantage of ppl who need $ asap.

I successfully resolved this exact issue last month by using specific terminology with the bank. When I called Republic Bank (TurboTax's partner), I specifically asked about their "Regulation CC compliance" and mentioned that I was documenting the call for a potential CFPB complaint regarding fund availability timelines. The representative immediately transferred me to a supervisor who processed my refund release within the hour. Financial institutions have discretion on fund holds, but they're extremely sensitive to regulatory compliance inquiries. Be polite but firm - ask specifically what "verification process" is still pending if they've already withdrawn their fees.