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Top 5 Reasons You Need a Benefits Debit Card

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Does your company sponsor Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), Health Savings Accounts (HSAs) or Transit/Commuter benefit accounts? If they do, they may offer you an account-linked benefits debit card. Here are our top 5 reasons to use a benefits debit card.

#1: Fewer claims to file

Benefits debit card purchases are often auto-substantiated at the point of sale. That means at many vendors, such as pharmacies, grocery stores, and doctors’ offices, your purchase is automatically verified. As a result, you don’t have to fill out claim paperwork and submit it to your administrator. Keep in mind, your administrator may still require proof to meet IRS requirements, so hang on to your receipts.

#2: Easy receipt submission

If your administrator offers a mobile app or online claims entry, it’s easy to submit requested receipts. Snap a quick photo and with a few clicks you’re done. Most TPAs still accept faxed receipts, if you prefer that route.

#3: Quick access to funds

Your FSA, HRA, HSA or Transit/Commuter account are there to be used. With a benefits debit card, you have instant access to funds unlike having to wait for a claim reimbursement.

#4: Benefit security

The locations where you can use your debit card are restricted by merchant category codes (MCCs). Approved vendors include medical clinics, pharmacies, eye care centers, day care facilities, bus and train terminals, etc. This prevents theft and benefit fraud. For example, you can’t use your healthcare debit card at a movie theater or gas station. In addition, many retailers use inventory codes to ensure that only approved products and services can be purchased with the card.

#5: Convenience 

Depending on your plan setups, multiple benefit accounts may be linked to a single debit card. For example, you may be able to have a dependent care FSA, healthcare FSA and transit account all on the same card. When you pay for goods and services, the MCC codes help identify which funds to use.

Check with your HR, benefits administrator, or Summary Plan Description to see if the company offers a benefits debit card. It’s a convenient and secure way to make the most out of your benefit accounts.