Explaining HSA/FSA Card Acceptance

What is HSA/FSA Cards?

A Flexible Spending account (FSA) is an employee benefit that consumers can have that allows them to set aside money, on a pre-tax basis, for certain health care and dependent care expenses.  

A Health Savings Account (HSA) is an investment account that consumers can have that credits a portion of a consumer's premium to the HSA Today.

Talus Clients can accept HSA/FSA Card payments if the following criteria is met.

• Have an approved MCC/SIC that is eligible to accept these card types (set by Talus). 
• Register with SIG-IS if you are a pharmacy OR other eligible business.
• The card being used is set up to accept the MCC/SIC that is assigned to your account with Talus.

If you feel that your MCC may not be correct, you can contact Client Services at 1800-787-4105. 

Note: Enabling an account to accept HSA or FSA payments does not guarantee a card will not be declined. Card issuers are still at liberty to authorize or decline any payment as they would with any other type of credit card.

For more Information and how to Register for SIG-IS, please see: How to Register for SIG-IS for HSA/FSA Card Acceptance

MCC's That are Eligible to Accept HSA/FSA Cards:

• 4119 – Ambulance Services (Dependent on Plan Administrator)
• 5047 – Dental/Lab/Medical/Opthalmic Hospital Equipment & Supplies
• 5122 – Drugs, Drug Proprietaries, and Druggist Sundries
• 5912 – Drug Stores, Pharmacies. 
• 5975 – Hearing Aids Sales, Service, and Supply Stores
• 5976 – Orthopedic Goods-Artificial Limb Stores
• 7277 – Debt, Marriage, Personal-Counseling Service (Dependent on Plan Administrator)
• 8011 – Doctors-not elsewhere classified
• 8021 – Dentists, Orthodontists
• 8031 – Osteopathic Physicians
• 8041 – Chiropractors
• 8042 – Optometrists, Ophthalmologists
• 8043 – Opticians, Optical Goods, and Eyeglasses
• 8049 – Chiropodists, Podiatrists
• 8050 – Nursing and Personal Care Facilities
• 8062 – Hospitals
• 8071 – Dental and Medical Laboratories
• 8099 – Health Practitioners, Medical Services-not elsewhere classified

Note: The above list of MCC's is selected at the time of boarding based on the goods and services you provide. Talus will set appropriately once an account is boarded. If you have an MCC listed above already with Talus, that does not automatically mean you can accept ALL HSA/FSA cards. The card itself must be enabled to be used at businesses with that same MCC. If the card is declining and you do have one of the MCC's listed above, the cardholder will need to contact the issuer to review the reason for the decline. If the issuer is not able to allow it for that MCC, then the cardholder can discuss their options with the issuer. There is nothing additional that Talus can do to allow an HSA/FSA card to go through other than ensure we have the appropriate MCC assigned to your account.

Additional Information

Clients that are selling products must first be registered with SIG-IS in order for their products to be deemed as “Eligible,” “Dual-Purpose” or “Ineligible.” In addition, the client must have an Inventory Information Approval System, or IIAS, in place to restrict the use of HSA/FSA cards only to eligible products. Finally, the client must be certified with SIG-IS and registered with Visa and Mastercard. Following these steps ensures that HSA/FSA payments will be processed without any declines (assuming cards are properly activated), and that purchases will be auto-substantiated (so that there is no need to provide receipts to prove eligibility of items purchased). Furthermore, no special MCC code is required in order to accept HSA/FSA funds as long as the above requirements are in place.

Clients that are exclusively providing healthcare services (for example, doctor’s offices, optometrists, hospitals, and dentists), can accept HSA/FSA cards without the need for further registration. However, due to prohibitions on the use of HSA/FSA funds for cosmetic healthcare purchases, payments that are processed by healthcare services clients may not be auto substantiated. Note that if a healthcare services business sells any products (e.g., an ophthalmology service that also sells glasses), they are subject to the same requirements as clients selling products, namely product registration, IIAS certification, and registration with SIG-IS, Visa, and Mastercard.

For more information, visit Merchants (sig-is.org).