Visa FSA Card

The Visa FSA (Flexible Spending Account) card makes it easy for you to access pre-tax income to pay for eligible healthcare expenses. You receive your Visa FSA card after enrolling in a health FSA plan through your employer at the start of the plan year. Each pay period, a predetermined amount (subject to employer maximums for healthcare) is deducted from your pre-tax wages and credited to your FSA.

Using Visa FSA Cards

You can use your card to pay for out-of-pocket, qualified healthcare expenses, such as co-payments, over-the-counter and prescription medications, and deductibles for medical and dental treatments. When you incur an eligible expense, you present the card to the merchant, doctor, pharmacy, or other qualified healthcare service provider, and the funds are deducted automatically from your FSA.

IRS Requirements for FSA Cards

Effective January 1, 2008, the IRS is requiring select retailers—including supermarkets, grocery, discount stores, wholesale clubs, and mail-order merchants—to identify healthcare-related items at the time of purchase through a process called an Inventory Information Approval System (IIAS). To meet these new requirements, many retailers have already changed their point-of-sale systems. However, some may have not; this may include retailers where you have used your card in the past. You’ll find a list of IIAS participating retailers at the SIGIS website. (Note: Most drug stores and pharmacies are also required to implement an IIAS by July 1, 2009.)

You will be able to continue to use your Visa FSA cards at IIAS-participating retailers that meet the IRS requirements. In addition, you will not need to submit receipts for your purchases at these participating retailers. However, you will no longer be able to use your Visa FSA cards at non-healthcare retailers (e.g., supermarkets, grocery stores, discount stores, wholesale clubs, and mail-order merchants) if they have not taken steps to comply with IRS requirements. Consult your health FSA administrator for more information.

Note: The new IRS requirements do not apply to healthcare retailers such as doctors, dentists, or hospitals. You can continue to use your card at these healthcare providers just as you do today.

To explore the finer details of Visa healthcare cards available, ask your HR department or employer about Visa FSA cards, or read the Frequently Asked Questions.