FSA Debit Cards

FSA Debit Card

We have included some of the most frequently asked questions on the FSA debit card below.

How does the FSA debit card work?

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.

How do I get an FSA debit card?

You can sign up for the FSA debit card by completing the FSA Debit Card Application. Once you complete the FSA Debit Card Application, you may fax or mail it to ASIFlex for processing.

Please note it takes approximately two weeks for you to receive the card once ASIFlex receives your FSA Debit Card Application.

Is there a Debit Card Claim Form?

You can find the form at the following link FSA Debit Card Claim Form. Once you complete the form, you may fax or mail it to ASIFlex for processing.

How do I report a lost card or request additional cards?

When you initially sign up for the FSA Debit Card, you receive two cards, both in the name of the participant. If you have lost your card, or simply wish to receive an additional card for a family member, simply contact ASIFlex, at (800) 659-3035, to make this request.

In addition, there is a $5 replacement FSA Debit Card fee, which is payable by check to ASIFlex.

Can I get a card in my spouse or child's name?

No. When you elect the FSA debit card, you automatically receive two cards, both in the name of the employee. You are free to give one card to your spouse or child, but ASIFlex cannot issue a debit card in the name of the spouse or child.

Where does the FSA debit card work?

The FSA Debit Card is coded to only work at: 1) merchants that are set with a MCC code defining that purchase/service as a medical good or service, or 2) stores that have an Inventory Control System in place that confirms at the point of sale that any items that have been purchased are eligible for the Flexible Spending Program (FSA).

What is a Merchant Category Code and why is it important?

The Merchant Category Code (MCC) is a four-digit number assigned to the vendor's credit card machine that identifies the provider as being a medical provider, dentist, grocery store, book store, convenience store, etc. If the vendor does not have an appropriate MCC (i.e., they must be coded as a medical provider, dentist, optometrist, hospitals, etc.) the card will be declined at the point of sale. There is not a way to tell prior to using the FSA Debit Card whether the provider has a MCC of a medical provider. We have generally found that the card does work at most doctors, dentists, optometrist and hospitals. In most, if not all cases, the card will not work at grocery or general retail stores (even at the pharmacy counter) unless the grocery store has implemented the Inventory Control System.

What are the Inventory Control System Restrictions?

The IRS says that use of the FSA Debit Card is okay if it is at a grocery store or general retail outlet that confirms at the point of sale that any item that is purchased with the card is eligible for reimbursement.

If you attempt to purchase a prescription and a Coca-Cola with the same transaction at a store that has the Inventory Control System, the FSA Debit Card will pay for the prescription and then ask you for a separate form of payment for the Coke. You should keep your receipts for all purchases made with the FSA Debit Card, but you should never have to submit a receipt for purchase made at these locations with your FSA Debit Card. As new merchants implement these systems, we will notify your employer. You may also view an extensive list of vendors that have implemented this system, by clicking here. Read more about the Inventory Control System by clicking here.

Do I have to file claims when I use my FSA Debit Card?

It depends. If you use your FSA Debit Card at a medical provider location where the dollar amount matches the known co-pay (your employer's insurance co-pay amount) for the treatment of service you received, you will not need to file a claim or send supporting documentation. This includes co-pays for prescription drugs, up to five times the amount of the co-pay. So, if you receive a five-month supply of a drug that costs $10 per month, you can charge up to $50 on your FSA Debit Card without sending a claim. If you charge over $50 on you FSA Debit Card for this purchase, you must submit a claim form with supporting documentation.

If you use your card at a store with the Inventory Control System, you will not have to submit a claim.

ASIFlex will let you know if you need to submit a claim form, so keep all receipts for your FSA Debit Card purchases. Please do not submit documentation until you receive a notice asking for it, since some items don't require follow-up documentation. You will need to send this notice to ASIFlex with the supporting documentation.

Please note that you will be required to provide documentation for eligible expenses that is at least equal to your entire purchase that is being questioned (or write a check to ASIFlex), or your card may be deactivated.

How do FSA Debit Card purchases that don't match a known co-pay or aren't made at a store with the
Inventory Control System affect my account?

If you make a purchase at a pharmacy or pay at a physician an amount different from your insurance co-pay, ASIFlex will immediately reduce your available Health Care FSA balance and show this on your ASIFlex account as a payment in advance. ASIFlex will send you a notice asking for follow-up documentation to support the purchase you made with your FSA Debit Card When ASIFlex receives a copy of your notice back with substantiating documentation, you account will then go back to normal.

Example: Tom pays his dentist $700 for a crown, using his FSA Debit Card. ASIFlex sends Tom a notice asking for follow-up documentation for the $700 purchase. Before Tom gets the detailed statement from his dentist, he submits a paper claim to ASIFlex for $22 in hearing aid batteries he paid for with cash. ASIFlex processes his claim, but no payment is issued that day. Instead, the amount ASIFlex is showing that Tom has been "advanced" is reduced from the $700 to $678. The next week, Tom faxes the notice received from ASIFlex along with his itemized statement for the crown to ASIFlex. ASIFlex processes the supporting documentation for $700, and Tom is issued a payment of $22.

Will I benefit from using the FSA debit card?

Yes, if you have high out-of-pocket costs for prescription drugs, doctor or dentist visits, or hospital charges. You can use your FSA Debit Card to pay for your co-pays at the time of service, instead of paying upfront, submitting a claim, and waiting for reimbursement. Additionally, while you will have to submit claims in many instances, using the FSA Debit Card allows you to utilize funds from your pre-tax account, as opposed to paying with your personal debit or credit card. The card is provided by your employer to increase convenience, but please don't forget that using the card doesn't mean you won't have to submit any claims for your FSA.

Do I have to sign up for the FSA debit card?

The FSA Debit Card is optional. If you do want a card, you will have to complete an FSA Debit Card application to get the process started. Otherwise, you can file claims and choose to either receive a reimbursement check or to have ASIFlex deposit your reimbursement in your bank account. When you sign up for the card, you will receive two FSA Debit Cards automatically. Both cards will be in the participant's name.

How will I know if the FSA Debit Card will work at my doctor's office or pharmacy?

You won't know until you receive a service or treatment from your provider. ASIFlex does not know which providers have an acceptable Merchant Category Code (MCC). However, if your card does not work at your doctor's office or pharmacy, you may still file a claim to receive reimbursement. Just let ASIFlex know whether you want a reimbursement check mailed to you, or deposited into your bank account.

How do I use the FSA Debit Card when I receive care?

You just swipe your FSA Debit Card through the credit card machine and select "credit" (Do not select debit).