Who processes ‘debit cards’ transactions for FSA accounts
Do you know what company or service actually processes ‘debit cards’ transactions for FSA accounts, and if it costs someone to provide debit cards and process the transactions? I am wondering if it works like credit cards, and the Dr offices who process the payments for customers get hit with a fee, like they would if a personal bank card is used. Also, I am wondering what data is stored…. is it just the date of payment, the amount, the Dr’s office name, and the client’s name? If you don’t know, can you point me to a company that processes them so I could ask the questions myself?
FSA cards are like debit cards but can only be used for approved healthcare expenditures. Like any other credit/debit transaction, you are charged a processing fee.
There are many payment processors that support FSA payments, and yes, they do require more information tracking than a standard transaction. Billing Tree is a payment processor that supports FSA payment cards, plus offers payment solutions specifically designed for healthcare providers. You can learn more about how Billing Tree’s FSA processing works here.
I hope this helps you find the specific answers you’re looking for. Good luck!
I’m going to chime in from an HR point of view.
Your best bet is to talk to the banks that set up FSA and similar accounts. Optumbank https://www.optumbank.com/product-services/flexible-spending-accounts.html and Bank of America https://healthaccounts.bankofamerica.com/explore-health-accounts.shtml
come to mind.
Since your questions are so specific regarding fees, and more importantly protection of health data, it’s not a bad idea to talk with someone in their FSA department who can tell you exactly how they comply with the Health Information Portability and Accountability Act (HIPAA) and what fees your health providers are charged, in any.
Good luck! Let us know what you find out.