H&R Block's Emerald Card is a flawed gem

Tax-preparation stores are attempting to solve a problem for their low-income customers without bank accounts. H&R Block is offering its customers a cash card to hold their tax refunds. For no start-up or maintenance fees, clients can load their refunds directly onto a MasterCard debit card called the Emerald Card. Like a savings account, the Emerald Card's balance is protected by the FDIC. Like a credit card, holders are protected from unauthorized purchases. They can add balances throughout the year, spend anywhere MasterCard is accepted, and take out money from participating ATMs for a $1.50-per-transaction fee.

Jackson Hewitt's iPower CashCard is similar, though more costly. You have to pay a $30 start-up fee, plus a Jackson Hewitt "office fee" that averaged $2.24 last year, according to the iPower web site. This card has the same balance protection as the Emerald Card, but requires no fee for using a participating ATM.

I should get excited about these cards. After all, they may be the only protected way "unbanked" people can hold on to their money. But there are drawbacks I don't like. The iPower card expires on July 31, 2007, so you're encouraged to spend that money rather than save it. The Emerald Card also expires, though an FAQ on the Block site suggests you can load your funds onto another card before the expiration date. But what a pain!

Of course, there's no interest offered, though at the low rates most brick-and-mortar savings and interest checking accounts are providing, that's no great loss. Still, by offering no interest, these cards offer little incentive to save, and to periodically shop for higher rates.

What I'd like better would be some truly low-cost, interest-bearing savings and checking accounts for lower-income savers. They're available online (check out Bankrate.com's listing of the top interest-paying accounts), but not of much use to people who don't have easy access to a computer.

One group looking for a solution is America Saves, a coalition of nonprofit, corporate and government entities focused on increasing the savings rate in the United States. Among its programs, America Saves identifies financial institutions that will provide low-minimum-balance, interest-bearing accounts to new savers. Individuals and families can join groups based in churches and community centers that offer "wealth coaching" to encourage good savings practices. America Saves says it has 65,000 such members nationwide.

This approach serves lower-income folks better than a temporary cash card, even one that can be renewed. In my view, if you want to save, don't put your money into Emeralds.

Comments

[Donna Irish]

This was the worst card or service I could have signed up for. This "Bank" lost $400.00 from my savings due to a "glich" as they put it. I was told the $ would be back in my savings by 3/01/08 and on 3/04/08 I was told the $ had been transfered however THEY DONT KNOW WHERE IT WAS TRANSFERED TO !!!!!! so' I have been hung up on by their so called customer service rep. 4 times and every time you call count on a 30 minute hold time at least. I would not and DO NOT reccomend this service to anyone! It sounds great but thats all I have never been so agravated with one company in my life and wish I could redo my taxes and never have considered this service. and when I recieved my new card, the permenant one, they did not cancel the temp. card and they cant tell me where the balance on the temp. card is either !!!

[TIMOTHY NELSON]

hello,
i would like to know
why i havent got my refund on
my card

[Don Moniere]

I filed my taxes on Feb 26th And filed my Taxes rapid . the money was to be transfered to my card in 8-15 days and still today It is not there I havecalled the IRS time and time again for them to tell me I have unpaid childsupport . For who ALL my kids live at home . They have the taz forms infront of them . Then they told me that they Were going to be another 2 weeks . I paid alot of money to get these taxes done to wait ??? The charges for this card were absoultely outragous . I do not recommend this service to anyone . DONT USE THE EMERALD CARD . IT IS A BIG MONEY GRAB FOR LIES PROMISED BY HR BLOCK

[Skrapy]

I have had no problems yet with the emerald card. Except the wait of 2 weeks when i was supposed to get the money in 1-2 days. A little loss of money. I think that H&R Block is not the best place to get your taxes done. But if you want to file and not pay money up front, it's not a bad deal. I would definitely recomend going to an accountant and paying the $60 up front. Probably get more money, and have no lingering headaches. Next year that is exactly what i am doing.

[Mary Ripoll]

My card was stolen in the First week in February. I reported it,filed a claim, and faxed all the paper work needed,now I would like to know when I will get my money also...The persons that had my card spent 1800 dollars of my money...This card isn't worth the hassle. Hold times are from 30 minutes to 2 hours on hold. Not very good customer service...

[Rachel Wesley]

I haven't had NO proplems with this card, It was FREE so for the guy that said it cost to much, its advertised as free you should ask for your money back. I see alot of people complaining about how long it took to get you taxes on the card, thats not the card its the IRS learn before you speak!

[Trina Pedigo]

I am in the situationa as Donna it has a month and still nothing. Service has also hung up on me. They gave me the same story a glich. First they said it would be there in 24 hrs then it went to a week. Well it has been over a month now and still nothing. To add to that every time I call about ths problem they charge ME $2.00. Every time I called I was on hold for 45 min. and on the phone with them for 1 hr. 30 min. I don't under why the Better Business Bureau hasn't done any thing about all the false advertisement. DO NOT DO THIS IT IS NOT WORTH IT!!!!!! H & R Block is the worst company I have ever had to deal with.

[Raquel Cox]

I have this card.I'll never do it again!!! They charge you all these fees for your own money! I wanted a cash withdrawl off the card. I got the withdrawl of $1300 and they charged me $120 of my money of fees.This was'nt the first time! I wouldn't recommend this to anyone! In fact draw all your money of at one time!In fact for the hassle and high charges, you are safer to get your money in a check. Its a rip off!

[ADRIANA]

THE EMERALD H&R BLOCK CARD IS THE WORST CARD EVER THOUGHT OF. I ALSO HAVEN`T RECEIVED ALL OF MY TAX REFUND AND I FILED TAXES FEB 13TH! IT`S BEEN ALMOST TWO MONTHS AND STILL NOT ALL OF MY MONEY HAS BEEN REFUNDED!!!!

I FILED TAXES JOINTLY WITH MY SEPARATED HUSBAND, WHOM I HAVEN`T BEEN WITH FOR ALMOST TWO YEARS. BIG MISTAKE! H& R BLOCK HAD ASSURED ME SEVERAL TIMES THAT I WOULD GET MORE MONEY THAT WAY AND THAT WE COULD GET OUR TAX REFUNDS SEPARATED INTO TWO ACCOUNTS. AFTER MANY ASSURANCES, I AGREED. THEY SAID THAT IT WOULD BE NO PROBLEM!!! BOY WAS I WRONG. I SHOULD HAVE KNOWN TO TRUST MY GUT INSTINCT.

WELL THIS IS WHAT HAPPENED.... TWO WEEKS LATER, NO TAX REFUND ON MY EMERALD CARD (THEY ASSURED ME THAT IF I CHOSE THAT REFUND METHOD IT WOULD BE THE SAFEST AND FASTEST REFUND!!!). I CALLED MY EX TO FIND OUT THAT HE HAD NOT ONLY RECEIVED HIS FULL REFUND BUT ALSO A PORTION OF MINE!

H& R BLOCK SAID THEY WERE SORRY...YEAH RIGHT....& THAT THEY COULDN`T FIX IT!!! WELL, HOW CAN YOU NOT FIX A MISTAKE YOU MADE! THEY TOLD ME TO CALL IRS, AND SO I DID. THEY TOLD ME THAT OF COURSE H&R BLOCK MADE A MISTAKE AND THAT H&R BLOCK WAS RESPONSIBLE TO FIX THE MISTAKE!!!! YEAH, RIGHT.

OF COURSE H&R BLOCK SAID ONCE AGAIN SORRY.....THEY(H&R BLOCK) HAD DEDUCTED THE CHILD SUPPORT THAT MY HUSBAND OWES ME FROM MY REFUND!!!!! I HAVE OUR SON AND I`M THE ONE THAT IS OWED THE SUPPORT, NOT HIM!!!!! HE RECEIVED CHILD SUPPORT MONEY THAT HE OWED ME OUT OF MY REFUND!!!! CAN YOU BELIEVE THIS?????!!!! STILL H&R BLOCK CLAIMS THAT THEY CAN NOT FIX IT WHEN THEY MADE A MISTAKE!!!!! I ONLY RECEIVED ABOUT $800 OF MY TAX RETURN WHEN I WAS OWED A LITTLE OVER $3,000!!!!

TO TOP IT ALL OFF, MY EX RECEIVED HIS REFUND AND THE REST OF MINE!!!! HE`S WALKING AROUND WITH TONS OF MONEY & STILL NOT PAYING CHILD SUPPORT WHILE I`M STRUGGLING TO MAKE ENDS MEET!!! OF COURSE HE FEELS THAT IF HE RECEIVED THE MONEY, THEN IT`S HIS TO KEEP!!!!

H&R BLOCK TOLD ME TO CALL THE IRS ONCE AGAIN AND FILL OUT AN INJURED SPOUSE FORM. WELL, WHEN I ASKED THEM (H&R BLOCK) TO HELP ME FILL IT OUT THEY TOLD ME I HAD TO PAY!!!!! PAY???? I JUST PAID THEM A LOT OF MONEY AND THEY f****d UP AND NOW THEY ARE ASKING ME TO PAY TO FILL OUT A FORM TO FIX THE MISTAKE THEY HAD MADE????!!!!! WHAT JERKS!!!!

ANYWAY, SO I CALLED THEM (H&R BLOCK) A MILLION OF TIMES AND FINALLY SPOKE TO THE RUDE MANAGER WHO AFTER MANY PHONE CALLS DECIDED THAT THEY WOULD DO ME A FAVOR AND NOT CHARGE ME TO HELP FILL OUT THAT DAMN FORM! WELL THEY SURE ACTED LIKE THEY WERE DOING ME THE BIGGEST FAVOR AFTER I PAID ALL THAT MONEY TO GET MY TAXES DONE!!! SO.... I MAILED IN THE FORM AND STILL NO MONEY!!!! IT`S BEEN ALMOST TWO MONTHS AND NO RESPONSE!!!

OF COURSE H& R BLOCK WON'T HELP, THEY ALREADY MADE THEIR MONEY!!!! SO I ADVISE ALL OF YOU, DON`T GET RIPPED OFF. PAY A LITTLE MORE AND GO HAVE A REAL ACCOUNTANT DO YOUR TAXES. IF YOU GO TO H&R BLOCK, YOU PROBABLY WON`T SEE YOUR REFUND MONEY! GOOD LUCK!!!!!!! I`M STILLL WAITING :) $$$$$$$

[Mike Slone]

I got my refund from H&R Block on an emerald card... And let me tell ya... I had NO problems what-so-ever... Zero. Zilch. I use my card all the time! I even use the GreenDot MoneyPaks to reload it and use it for PayPal and eBay.

[Becky]

I got my card when they first came out with them in 2007. I have never had any problems with my card. I even got a personlized card and my husband and I have our paychecks direct deposited on it. Still never a problem. Yes, there is an atm fee, but if you get cash back at a retailer, there is no fee. The atm fee is still not as high is having to pay a fee to have your check cashed somewhere, not to mention the hassle because you don't have an accout. It sounds like most of the problems I have read about have been the IRS fault, not H&R Block. I would recommend the card to anyone who asks.

[josie]

i love my emerald card! it is very convenient and i can use it anywhere. it helps me alot and for people who don't have good credit and can't get a credit card it's a plus! i would recommend it to my friends. also, i opted to get my refund on the card in 8-15 days and got it in exactly 8 days. maybe i'm just lucky.

[Sharon]

If your refund was direct deposited to the emerald card, will the rebate also be direct deposited to the emerald card as well?

[Macmorran]

I got my refund on on an emerald card. And NEVER had a problem
to this day i still use it. The only thing I would like to know is If your refund was direct deposited to the emerald card, will the rebate be direct deposited to the emerald card as well?

[Tobie Stanger (Consumer Reports)]

Emerald Card users:

Expect to get your rebates by mail. Please see my new blog, which was posted today (April 28th.)

[shana]

I paid $194.16 in fees and got an emerald card. When I trace my IRS refund it says that my refund was deposited on February 8, 2008. My card and the # you call to activate it doesn't work. Now I know that my stimulus rebate which should have been deposited today I will never have access to. So I will lose 1200 dollars of my refund from next year that I never got, also. Emerald cards are a BIG, I mean BIG mistake.

[Tobie Stanger (Consumer Reports)]

Shana:

If you used a refund anticipation loan (RAL) to get your refund on your Emerald Card, your rebate will be MAILED. Keep in mind, too, that even those rebates that are scheduled for direct deposit did not all go out yesterday.

Please see my blog of April 28, 2008 for details.

[ryan Schaffer]

We got this card in January and everything went smoothly. Our taxes were put on it. and my wife has her paychecks deposited straight to the card. It worked fine until March 15th when they sent a letter telling us that we could get a 500 dollar advance put on the card with a 30% interest and to just call to get it set up. We just laughed and said to each other NO WAY and threw it away... But the day after, 300 dollars showed up on the card. So we called customer service to ask them what it was from. They told us the money was the prob from the charges when we filed the 24 hr (RAL) and since it took 2 weeks to get our taxes, the bank was sending the money back for that. So we spent it, and about a month later we get a letter in the mail stating that we now needed to make 30 dollars a month payments to them along with the 30% interest rate for the cash advance. So I called them up saying, Hey, we never authorized this, and the lady said, Well you would have to for the money to show up. So I asked her to show me where I had ever called and talked to this place to authorize this and she said she couldn't and transferred me to her shift manager. I asked him the same question and he tried to tell me that we had called the number on the back of the card and since I did that I must have done it then. I explained to him that number takes me to 4 different places. And I then told him that yes, we did call that number and it was to customer service and what they had told us. So I posed the same question to him: Show me where I had ever called that particular division to activate the advance. And he said, Well, our computers don't do that; it just shows that you called the number on the back of the card. Can you believe that? So we went back and forth and I finally told him to provide the proof that I authorized this cash advance and he slipped up and said he couldn't, and hung up on me. And every time I call back, they do the same thing. I think it's time to get a lawyer. All you guys, watch out for this scam if you have this card.

[Jaime]

If you received a RAL or RAC you will NOT be direct deposited the cash, you will receive a check.

If you went in and did a normal tax claim and had money direct deposited (not a RAL or RAC) your stimulus will go on your emerald card... has been confirmed by the H&R Block website

http://digits.hrblock.com/taxrebate/myth.php

[sharon gari]

I got my card in 2006, so I have had it over a year. For the most part, I have had no problems with it. This year I opted to have my refund direct deposited onto the card, as I did the year before. They said it would take a couple of days, I didn't do the RAL but did do "the anticipation loan" which costs less in fees. The next morning I called the 866 number to check my balance and the money was already there! I pay my bills online with my card and use it for most purchases with no problems. I had my work direct deposit my payroll check to it, no problem.
BUT every gas station I go to and swipe the card, it says "see cashier" so I have to go into the station and stand in line and they tell me that their computer system will not take the Emerald card at the pump but it does inside when they swipe it!
Go figure!? This really irks me because I use the debit card at gas stations to save time and not have to go into the station!
At a Mobile station the clerk suggested I press "credit" instead of debit and it did go thru but the next time I tried that it didnd't. By the way, if you want to get out of ATM fees, go to Walmart. They will let you get $100 over the amount of your purchase and there is no fee. Of course, if you wanted $300. you may have to go back 3 times but I think it is worth not having to pay the $2.00 per $200. fee the machine charges you and then another $1.50 fee from the Emerald card! I also do not like using Moneygram to load the card. They charge you like $5.00 to put money into your account!!! I think that is outrageous!

[Robert]

Disclaimer: My spouse works for Block - of course no one handling the Emerald Card accounts has any way of knowing that.

The card was designed for people who can't even get a debit card because they're deadbeats, or have some other MAJOR financial/legal issue. In my case, I had an unpaid bounced check. If you have an account with a bank, why in the world would you opt for one of these?

I have had one problem ever - my direct deposit from my employer was delayed once for about 6 hours. That's it.

To Ryan Schaffer who spent the cash advance he claims they never authorized, please.... Give me a break.

There is a process you have to go through that's pretty obvious.
The fees that would have been refunded would only have been the Rapid Refund type fees - not the tax prep fees, as was explained to you, and which you acknowledged in writing.

And let me point out that you have to have either ROTTEN credit or owe a government debt to not qualify for RR. It used to be tougher, but now even I qualify, and I can't even get a cell without a $500 deposit from ATT - and VZW won't do it for any amount.

How much were your prep fees and how much were you going to be charged for the advance? If you didn't remember (unlikely) you could have referred to your packet where it's all spelled out. Simple logic should have told you that:

A: The $500 was much larger than the fees that could have been refunded.

B: It's highly unlikely that the fees would come out to exactly $500. This would have been your clue to read your paperwork.

In any case, you admit receiving the money, so it's a valid debt. If it were actually made in error, the MOST that would be waived would be the fees associated with the advance, not the advance itself.

Of course, you probably won't pay the money back. If you were in the habit of paying your debts, you wouldn't have been declined for the loan in the first place.

Is 30% a high rate?

Yes, if you have decent credit. But I guarantee I wouldn't loan you money even at 30% apr with no collateral and crappy credit.

To Adriana:

Typing in all caps doesn't make you look too bright - just an fyi...

Your husband filed a fraudulent tax return. Block filed based on the information you provided. They have no control over what your husband does. You should have known that he might do something like this. He'll be screwed in the end so you can take comfort in that. It's still not Block's fault in any way, and your post is childish. Please grow up.

To Raquel Cox:

WHO charged you $120?
I'll bet you $120 it wasn't Block charging you $120 to withdraw $120 of your own money. As a matter of fact, while I doubt you'll ever read this, if you can provide documentation that HR Block Bank charged you $120 to withdraw $1300 of your money (not a cash advance) I will personally send you six $20 bills via US Mail. I'm not kidding, and I'll back up what I say, but you'll have to back up what you claim as well. Put up or shut up.

I'm so tired of all these mouth breathing trailer trash that don't listen, don't read, and blame everyone else on the planet for their own irresponsibility.

[Ann]

We've had an Emerald Card for two years now and never had a single problem. The money is always there when it's supposed to be and we've never been charged any outrageous fees for cash withdrawls. We mostly use it to pay bills online and to pay-at-the-pump for gas. We've been screwed by the two local banks here and refuse to drive 35 minutes to find a better one so this was a great solution.

Robert, you found a way in your post to offend almost everyone who has ever used an Emerald Card by calling us deadbeats or "mouth breathing trailer trash". With you admitting to your horrible credit and that unpaid bounced check sounds like the pot calling the kettle black.

[ryan Schaffer]

to Robert you come in here trying to defend a mistake that yor spouses company made . and call us all names? but next time do us all a favor before speaking
A)Learn how to read.
B)do some research

for one the reason why people got the card was it was the only way h&r block would let you get an advance on yor taxes you had to take their card.

as to you saying i have rotten credit not to get a(RAL). ask your spouse what could stop you from getting one of those loans .and he or she would tell that if you don't file as head of house hold every year then you won't get it! since my wife norm has our taxes done at while I'm at work they would norm put her as head of house hold since they have to because she is there. since this was the first year since we have been married that i was put on first they denied me because i have never had one done in my name before. that's all that matters not yor credit. lol BTW i have very good credit just to let you know. we only use the card for on line stuff like ebay. But seems like you don't since you have a unpaid bounced check and think 30 to 40%interest isn't high. That says allot about h&r block. That they will let somebody work there that can't even pay their own bills.Yea you guys can't even balance yor check book then i am going to trust your wife to do my taxes? kind of says something huh? but any ways you self stated there was a system that they would to had to follow. then why can't they follow that system and show me where i authorized this? oh wait because they can't since i never did. that the only logical explanation for this fact that they can't show me. if they could they would have done it right there. don't you think? i think they would have. and if you read what i wrote they gave us 300. and yes thats right about 290 with some change is what the fees and every thing came out to on the RAL. that's why they are trying to regulate them right now in congress.

the bottom line is. learn how to read and do some home work. then you won't look like such a moron when you say every body in here is a "mouth breathing trailer trash that don't listen, don't read, and blame everyone else on the planet for their own irresponsibility". FYI

PS thanks for letting me know not to go back next year. since you and your wife can't balance you check book. why am i going to trust h&r block with people like that working there?

[Robert]

Hey, I never claimed to be responsible - but I do accept the consequences of my actions.

Ryan: Bottom line - $500 or $300 - there was no reason for you to expect that amount to be credited back. Again, the only thing potentially creditable would be the interest/loan fees - not the tax prep. And the fees do not come anywhere near that amount. They simply can't. You'd exceed the max loan amount before you came up with $300 in loan fees.

Some people think I'm harsh - but the simple fact is that the vast majority of complaints here are from people who clearly have little to no understanding of how financial instruments function.

Hell, they can't even grok that a loan is a loan, so now Block reps have to state - very slowly - "Your Refund Anticipation Loan is a loan. You have to pay it back even if your refund amount is ultimately less than the loan amount."

I'm fortunate in that my employment allows me freedom to pretty much make my own hours, and my wife's office is in a high crime area, so during tax season I spend my evenings sitting in the waiting area of my wife's office. A male presence does have a deterrent effect.

In sitting there, I've seen clients explained how things work in excruciating detail, only to have said client later claim it was never explained to them.

[Robert]

Oh, btw - the reason I stopped by to update my comments is that I did have a problem with my card today.

It wasn't a Block problem - it was Southwest Airlines putting holds for one amount, and then breaking the charges into segments so they don't match and the holds never clear.

Block fixed it though. Took about 5 minutes - 10 if you include the first explanation to the outsourced script reader.

[tee]

Just to let everyone know, i got an emerald card too. Crazy thing happened and i would like to share with all you guys. Ilike everyone one else used my my card up . My last balance in feb was like 2 dollas and some odd change. Just this may I checked it again and it said $156 and some odd change . So just be careful and dont be so quick to dirch thos cards. I dont know how i got it but im not complaining either.Lol

[cecil]

Can I close my Emerald Card balance by transferring it to another bank? Fees?

[Tonya]

I would like to know are you doing the loan this year with your most recent pay check stubs and when