It means you want to have the fees deducted from your federal refund. Then it has to go though a 3rd party bank to take the fees out. There is an EXTRA 40 Refund Transfer service charge (45 in California) for that. Or you can pay the fees upfront with a credit card to avoid the extra charge.
How to remove the Pay with Refund fee
https://ttlc.intuit.com/community/downgrading/help/how-do-i-remove-pay-with-my-refund-fees-in-turbot...
