Do you have a Flexible Spending Account (FSA), Health Savings Account (HSA), Transit/Commuter account, or other employer-sponsored benefit accounts? If you’re enrolled in one of these accounts (or other similar account), you may be eligible for a benefits debit card. Learn more about benefits debit cards below.
A benefits debit card is an account-linked debit card that allows you to pay for out-of-pocket expenses at approved locations. Most benefits debit cards are powered by Mastercard® or Visa, which means they can be accepted at most places that accept major credit cards.
If you sign up for a tax-advantaged benefit account through your employer, you may be eligible for a benefits debit card. These accounts include:
It depends on your employer’s plan, whether or not you can get a benefits debit card. During enrollment season, your HR department or benefits administrator should provide you with that information. If you have further questions or are unsure, be sure to contact them.
A benefits debit card is linked directly to your FSA, HSA, etc. account. When you make a qualified purchase at an approved location, you swipe the card and transaction is complete. You don’t have to pay upfront and then file a claim for reimbursement.
You should always keep your receipts because your administrator may request them to verify your purchase.
If you don’t have a benefits debit card, you’ll have to pay up front and then file the claim paperwork afterwards.
Yes. Your card is equipped with a Merchant Category Code (MCC) and inventory information approval system (IIAS) that helps reduce the chance of benefits fraud and protects your money. Learn more about these security features.
In order to make a purchase, you have to be at an approved location. These include pharmacies, grocery stores, doctor’s offices, bus station, and other locations. Second, the item or service purchased must meet IRS eligibility. View a list of IRS-approved eligible expenses.
For more information on benefits debit cards and if your plan is eligible, contact your HR or benefits administrator.
Sign up to receive personal thoughts from the Captain as well as news on FSAs and HSAs!