When you apply for the FSA debit card with ASIFlex, your card is programmed with the full amount in your Health Care FSA for the entire plan year. This means if your annual contribution amount is $1,000 for the plan year, your card will be programmed with $1,000 on the first day of the FSA plan year. (If you apply for the debit card after you have submitted claims for reimbursement, your card will be programmed for the remaining balance in your Health Care FSA.)
The FSA debit card is swiped at a credit card machine like a normal credit card. When the card is swiped, two things are checked: 1) available funds in your Health Care FSA and 2) the Merchant Category Code (MCC) or Merchant Identification Number of the merchant you are purchasing goods or services from. If you do not have enough available funds on the FSA debit card to cover the entire attempted transaction amount, the card will be declined at the point of sale. If you attempt to purchase a good or service at a vendor that does not have a MCC indicating it is a health care provider or at a merchant with an IRS-approved Inventory Control System the card will be declined.
Please note that even though the card is known as a debit card, you will have to select the "credit" option at the point of sale.