Where can I use my Benefits Debit Card?

IRS regulations state the debit card may only be used for medical expense purchases at health-care related merchants or where the IRS approved Inventory Information Approval System (IIAS) is in place. IIAS approves eligible FSA items at the point of purchase. IIAS will deny ineligible FSA expenses, which will need to be paid using another form of payment. No additional substantiation is required for transactions that are approved at the point of purchase using IIAS. Several merchants already offer the IIAS system and many more are adding the system.

A list of Merchants using IIAS can be found under FSA "printable forms" on Discovery's web site.

Effective July 1, 2009 pharmacies must have an IIAS in place or meet the 90% rule for the debit card to be used for purchases.

The Benefits Debit Card may also be used at day care providers that accept MasterCard and have a valid merchant category code signifying they are a day care provider. The debit card may not be used if you pre-pay day care expenses since the IRS requires the expense must be incurred before reimbursement can be made from your dependent care spending account.

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