FSA Debit Card

FSA Debit Card is an exceptional type of debit card which is used in America to get at tax favored spending accounts like HRA or Health Reimbursement Account,HSA or Health Saving Account and FSA or Flexible Spending Account. These cards are often issued with HSAs, HRAs or FSAs, and because the FSA is the most common and the oldest of these accounts these cards are known as FSA Debit Cards. Most of the FSA Debit Cards are issued for medical purposes though there are also issued for dependent care and transportation expenses.

FSA Debit Cards are not like other debit cards that can be used at every market place which accepts Master card or Visa card. There are some distinct places where FSA Debit Card can be used:

• Doctors and hospitals who provide medical treatments.
• Businessman with an Inventory Information Approval System or IIAS. The FSA eligible products are only eligible to be bought through FSA Debit Cards.
• Grocers, online pharmacies, and discounters need to install IIAS to accept the card after December 31, 2007.
• All true pharmacies will have to install the IIAS within 31st December,2008 unless more than 90 percent of their products are FSA eligible.

FSA Debit Card IRS Requirements

• Every transactions that are made through FSA Debit Cards must be either confirmed or reimbursed from the employees according to the IRS Revenue Ruling 2003-04. This substantiation should be done either through paper receipt posited by the holder or through electronic evidences such as auto-adjudication.
• Copay Matching is known as the most common method of auto adjudication. Under the ruling 2003-43 as exaggerated by 2006-69 notice ,the provider of HRA or FSA must get hold of the amount of the health plan of the employee. If it becomes exactly the same as between one and five of the co payment accounts, it can be approved without receipt and auto adjudication.
• If the charges are not confirmed through receipts or auto-adjudication, the provider of FSA or HRA should reimburse the charge and freeze the Debit card until it is reimbursed. There are various other methods through which this process can be done.