Refund Transfers (RT): Why “SBTPG” or “Republic Bank” Has Your Money

You check Where’s My Refund, see “Refund Sent,” and expect your deposit to hit. Instead—nothing. Then you notice unfamiliar names like SBTPG or Republic Bank mentioned by your tax preparer.

This is not a mistake. It is a Refund Transfer (RT).

Understanding the IRS refund transfer middleman explains why your refund does not go directly to your bank, why delays of 24–48 hours are common, and why WMR and your bank account never seem to line up when fees are deducted from your refund.

What Is a Refund Transfer (RT)?

A Refund Transfer is a payment arrangement where:

• You do not pay tax prep fees upfront
• Fees are deducted from your refund instead
• A third-party bank temporarily receives your refund

The IRS does not send the money directly to you in these cases.

Why SBTPG or Republic Bank Is Involved

Banks such as:

• Santa Barbara Tax Products Group (SBTPG)
• Republic Bank
• Other tax settlement banks

Act as middlemen between the IRS and you.

Their role is to:

1. Receive your IRS refund
2. Deduct preparation fees and advances
3. Forward the remaining balance to you

This extra step creates extra time.

How Refund Transfers Change the Refund Path

Without a Refund Transfer:

• IRS → Your bank → You

With a Refund Transfer:

• IRS → SBTPG / Republic Bank → Your bank → You

The IRS is finished once it sends the money to the settlement bank.

Why WMR Says “Sent” but You Don’t Have the Money

When WMR updates to “Refund Sent”, it means:

• The IRS released the funds
• The refund was paid to the third-party bank

WMR does not track what happens after that point.

Your personal bank will not see the deposit until the settlement bank finishes processing.

Why Refund Transfers Add 24–48 Hours

Settlement banks must:

• Receive the IRS funds
• Post them internally
• Deduct fees
• Initiate a new ACH transfer to you

Each step occurs in batches, not instantly.

That is why most Refund Transfers add one to two business days.

Why This Delay Is Not an IRS Issue

Once the IRS sends the money:

• It cannot speed up delivery
• It cannot see the settlement bank’s timeline
• It will not update WMR again

At that point, the delay is entirely between:

• The settlement bank
• Your tax preparer’s agreement
• Your personal bank

How to Confirm If You Used a Refund Transfer

You likely used an RT if:

• You chose “pay fees from refund”
• You received a refund advance
• Your preparer mentioned SBTPG or Republic Bank
• Your deposit is not direct from “IRS TREAS 310”

These are all indicators of a middleman.

What Happens Next?

After the settlement bank processes the refund:

• The remaining balance is sent to your bank
• Your bank posts the deposit according to its rules
• Funds become available shortly after

No further IRS updates occur.

What You Should and Should Not Do

You Should:

• Check the settlement bank’s refund status portal
• Allow 24–48 hours after WMR says “Sent”
• Confirm fees and advances were deducted correctly

You Should Not:

• Call the IRS about the delay
• Expect same-day deposits with Refund Transfers
• Assume the refund is missing

The money is moving—it just took a detour.

The IRS refund transfer middleman system explains why your refund sometimes feels late even when everything went right.

• The IRS sent the money
• A third-party bank received it
• Fees were deducted
• Your deposit is on the way

If SBTPG or Republic Bank has your refund, patience—not panic—is the correct response.