ASIFlex Health Care Flexible Spending Account (FSA) Debit Card Explanation and Overview
How does the ASIFlex debit card work?
The day your FSA Debit Card application is processed, your card will be programmed with the remaining annual balance in your FSA. You can
then use the card to pay your medical provider or to purchase your prescriptions and over-the-counter items. The card pays the provider for
the care and your available FSA balance is reduced by the purchase amount. Using the card does NOT eliminate your responsibility to
file paperwork with ASIFlex. The IRS requires that each card transaction be supported, either electronically behind the scenes or with
documentation ASIFlex requests from you, to ensure your pre-tax money is only being used to pay for FSA-eligible expenses.
Where can the cards be used?
Per IRS regulations, the FSA Debit Card is restricted to use 1) at health care providers (based upon the Merchant Category Code of the
provider) or 2) at retail stores that have an Inventory Control System in place that restricts the items purchased with the card to FSA-
1) Health Care Merchant Category Code (MCC): Every merchant that accepts credit cards has an MCC, which is a general category that is
assigned when the merchant applies for the right to accept credit cards. The FSA debit card will work to pay providers that have an MCC that
indicates the merchant is a health care provider (hospital, doctor, dentist, optometrist, chiropractor, etc.).
2) Inventory Control System Restriction: The IRS also allows a card to be used at retail stores that have an FSA Inventory Control
System in place that only allows FSA-eligible items to be paid for with your FSA debit card. The card will work at these stores, even if the MCC
does not indicate it is a health care provider. A list of stores with this system in place now (and some expected in the future) is available online,
at www.asiflex.com/debitcards. Payments at these stores will not generally require