Debit Card Tips

Debit Card Tips: What to Expect

1) The debit card is intended to increase the convenience of using your tax-free contributions to your FSA account and may or may not reduce the number of claims you are required to file.

2) The types of charges made to your FSA debit card will dictate which charges require substantiation by filing a claim. Always keep your receipts. The IRS dictates when the Plan must request receipts. Taxsaver Plan will request the receipts from you via email.

3) It is possible that your health, dental or vision provider may purchase a “used” credit card terminal (the swipe machine) that is not reset with a merchant code that applies to the type of service that they provide. This could result in your card being denied at the point of sale. Do not worry, you can choose an alternate form of payment and submit a statement from the provider to Taxsaver Plan for check or direct deposit reimbursement.

4) Be aware of physician offices inside hospitals. When issued a credit card terminal (the swipe machine), it will be issued with a merchant code of a hospital instead of a physician. Your card will be accepted at the point of sale, but you will be asked to submit an itemized receipt for this service because the co-pay for your office visit will not match a hospital co-pay.

5) Taxsaver Plan will notify you when you need to submit a receipt to substantiate the debit card swipe. Please remember that a credit card receipt is just a duplicate of the charge itself. The IRS requires that Taxsaver Plan review the service that was rendered. An itemized statement from the provider should include the date of service and type of service rendered.

6) You will have 35 days (approximately) to submit the receipts when notified. Once the 35 days expire, the card will be temporarily deactivated if you have not provided Taxsaver Plan with the requested information.

7) Taxsaver Plan requests 48 business hours to process your receipts. For our processing schedule, please refer to our Contact page. Please be sure that 48 business hours have passed before you check your account information online to verify that your claims has been processed.

8) Unfortunately, no system is 100%. As we attempt to make this card more user friendly while staying within the IRS requirements, we will lessen the amount of receipts required to substantiate claims. However, please be aware that we rely on a third party to make this process work and we know that it is not always perfect.

9) If you find the debit card procedures too constrictive, please feel free to pay for the expenses out of pocket and submit the receipts for reimbursement. We reimburse non-debit card expenses weekly.

10) Due to the Patient Protection and Affordable Care Act and the Health Care Reconciliation Act of 2010, some over-the-counter drugs and medicines once considered eligible for reimbursement under a Health Flexible Spending Account will now require a prescription from a licensed physician.Only items purchased on or after January 1, 2011 will be subject to the new regulations. Items purchased in 2010 but not yet submitted for 2010 reimbursement will not be affected by the new regulations. It is necessary to submit your physician’s prescription with each request for reimbursement for affected over-the-counter items.

How does this affect my FSA Debit Card? If you have an FSA Debit Card, it will no longer be accepted to pay for affected over-the-counter expenses that were previously considered to be eligible.  Again, this change will take effect on 01/01/2011.