DailyPay Launches Early Access to Federal Tax Refunds for Users
Workers using DailyPay, a financial technology company offering on-demand pay services, may now be able to receive their federal tax refunds up to five days earlier than the standard processing time, the company announced Tuesday.
The new feature allows users to direct their refunds to a DailyPay Visa® Prepaid Card. According to the company, once the IRS transmits the payment file through the Automated Clearing House (ACH) network, DailyPay can make the funds available ahead of the official payment date—though early access is not guaranteed and depends on several factors, including the timing of the file and fraud screening procedures.
Jack Rubin, senior vice president of consumer financial solutions at DailyPay, said the service aims to help users achieve greater financial flexibility.
“Getting hard-working Americans their hard-earned tax refund dollars faster represents another example of how we are thoughtfully creating impactful products and solutions to help workers everywhere on their journey to financial stability,” Rubin said in a prepared statement.
The early tax refund option expands the company's portfolio of financial tools, which includes earned wage access, savings features, credit health resources, international money transfers, and cash-back offers through its prepaid card.
A 2023 survey commissioned by DailyPay found that 69% of users who previously paid bills late reported doing so less often or not at all after using the service. Additionally, 62% said they were less likely to incur credit card interest charges.
DailyPay’s platform is offered as an employee benefit by a range of major employers nationwide, aiming to support workers' financial well-being by providing more control over their income.