Captain Contributor Explains Benefits Debit Cards
No matter where you go – doctors’ offices, grocery stores, retail shops, and more – you can use a debit or credit card to pay for goods and services. But did you know you can also use a debit card that’s linked to your healthcare benefits accounts?
If your employer offers a Flexible Spending Account, Health Reimbursement Arrangement, Health Savings Account, or Transit/Commuter benefit account, you may have the option to get an account-linked benefits card.
Convenience
One of the best things about a debit card is that it’s super convenient and you have fewer claims to file. At many vendors, such as pharmacies and doctor’s offices, your purchase is automatically verified and the money comes out of your benefit account. This can cut down on the time spent filling out paperwork and waiting for a reimbursement.
Keep in mind, your administrator may require proof for record keeping so hang on to those receipts!
Security Features
You can’t use your card to pay for just anything, though. Locations where you can use your debit card are restricted by merchant category codes, which means the card only works at pre-approved vendors such as medical clinics, pharmacies, eye care centers, day care facilities, or bus and train terminals. This prevents theft and benefit fraud. In addition, many retailers use inventory codes to ensure that only approved items and services may be purchased with the card.
One Card for Multiple Accounts
You may be able to use just one debit card for all your benefit accounts! For example, you can have a dependent care FSA, healthcare FSA and transit account all on the same card. When you pay for goods and services, the card automatically pulls the money from the correct account.
No ATM Withdrawals
It’s important to note, however, that you cannot use your benefits debit card at an ATM to withdraw cash.
For more information about your benefits debit card, or to find out if your company offers them, contact your HR department.