FSA & HSA Card Acceptance

The Payrix platform follows a meticulous process to assist with properly authorizing Flexible Spending Account (FSA) and Health Savings Account (HSA) card payments, using an innovative Inventory Information Approval System (IIAS) solution.

For Merchants in medical-related industries, you can utilize this certification to process HSA and FSA cards where otherwise unable:

• IIAS Certification implements a system that can verify and approve eligible healthcare items at the point of sale. This ensures that items purchased with an FSA/HSA account card comply with IRS guidelines for qualified medical expenses.

  • IIAS Compliance: Certain MCC codes can necessitate an IIAS-compliant Point-of-Sale (POS) system.

• 90% Rule registration refers to an alternative method allowing Merchants to automatically approve transactions as eligible if at least 90% of the items sold are FSA/HSA eligible. This rule simplifies the process for some Merchants but may not provide as much detailed verification as IIAS.

  • 90% Rule Compliance: Only stores whose gross sales are at least 90% from prescriptions and over-the-counter eligible healthcare products can be registered as qualifying for the 90% Rule.

HSA/FSA Card Payment Processing

To accept card payments from HSA and FSA accounts you must:

1. Be an eligible Merchant Commercial Code (MCC).

2. Receive IIAS Certification from the Special Interest Group for IIAS Standards (SIGIS) with Worldpay as your acquirer.

Warning: If a Merchant does not Register for the 90% Rule Exemption or has not implemented an IIAS certifications, the Merchant will find that transactions by customers with FSA/HRA cards are declined by card issuers in compliance with IRS regulations.

Medical MCCS, specific MCCs don’t require SIGIS certification, governed by the FSA/HSA plan administrator.

IIAS Certification from the Special Interest Group for IIAS Standards (SIGIS)

IIAS Certification - Merchant Category Code (MCC) Eligibility

FSA/HSA cards may be accepted by Merchants with IIAS certification under the following medical-related MCCs:

• 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

Childcare-specific cards can only be used at the following MCC:

• 8351 - Child Care Services

Note: 8299 - Schools and Educational Services (Not Elsewhere Classified) is not eligible for FSA/HSA healthcare card acceptance.

Based on your entity level, follow the steps below to become a SIGIS member and receive IIAS certification:

Merchant IIAS Certification

1. Merchants must complete the SIGIS IIAS Merchant Certification Self-Assessment.

   1. If the Merchant’s Referrer is registered with SIGIS, they must register as a certified TPS Merchant.

2. WorldPay will send this completed self-assessment to the SIGIS Certification and Compliance Committee.

3. SIGIS will review the self-assessment for the Merchant, ensuring completeness and accuracy.

   1. If deficiencies are identified, Worldpay collaborates with the Merchant to revise and resubmit the self-assessment to meet SIGIS requirements.

4. Once approved for SIGIS membership, the Merchant can begin the technical testing with Worldpay.

5. After satisfactory technical testing is successful, and the self-assessment is approved, the Merchant is now certified and will be listed on the SIGIS record of certified Merchants.

Merchants that are members of SIGIS under a Referrer/Third-Party Servicer (TPS) certified by SIGIS and Worldpay can obtain IIAS Certification without technical testing.

Result: After successful IIAS certification, the Merchant will now be listed in the SIGIS IIAS Merchant List and fully IIAS-compliant to accept FSA/HSA payments.

Referrer (Third-Party Servicer) IIAS Certification

1. Referrers must complete a SIGIS Third-Party Servicer Certification Self-Assessment.

2. WorldPay will send this completed self-assessment to the SIGIS Certification and Compliance Committee.

3. SIGIS will review the self-assessment for the Merchant, ensuring completeness and accuracy.

   1. If deficiencies are identified, Worldpay collaborates with the Merchant to revise and resubmit the self-assessment to meet SIGIS requirements.

4. Once approved for SIGIS membership, the Referrer can begin the technical testing with Worldpay.

5. After satisfactory technical testing is successful, and the self-assessment is approved, the Referrer is now certified and will be listed on the SIGIS record of certified Third-Party Servicers.

To begin IIAS Certification for Merchants in your portfolio, complete an online SIGIS TPS Client Merchant Form.

Result: After successful IIAS certification, the Referrer (Third-Party Servicer) will now be listed in the SIGIS IIAS Merchant List and fully IIAS-compliant to accept FSA/HSA payments.

90% Rule Registration

Completing the 90% Rule Registration does not make a Merchant IIAS-compliant. If a Merchant registers to be designated as 90% Rule exempt, the Merchant is stating that its store(s) are exempt from the IRS requirement to have IIAS standards in place.

Warning: The IRS requires annual registration and re-attestation that the sales of each registered store location to maintain 90% rule registration from prescriptions or eligible medical items.

90% Rule Registration - Merchant Category Code (MCC) Eligibility

FSA/HSA cards may be accepted by Merchants with 90% Rule Registration under the following medical-related MCCs:

• 5912 – Drug Stores/Pharmacies

• 5122 – Druggist/Drug Proprietaries

Merchant 90% Rule Registration

1. Contact Worldpay to obtain the following for each store location:

2. Log in to the SIGIS Members Area.

3. Click the Access 90% Forms link and complete the online registration form.

Note: Members can enter multiple DBA(s) under one Primary Organization (SIGIS Membership).

4. A registration confirmation will be sent to the Merchant via email.

Result: After successful 90% Rule Registration, the Merchant’s location(s) will now be listed on the SIGIS website as a “90% Rule Compliant Merchant”.

Conclusion

Certified with IIAS or Registered with the 90% Rule, your Merchant locations are now ready to accept most FSA/HSA account card payments for various medical-related products and services.