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How to Register for HSA/FSA Card Acceptance

Applies to All Processors

Merchants looking to accept HSA (Health Savings Account) or FSA (Flexible Spending Account) cards must register through SIGIS (Special Interest Group for IIAS Standards). There are two distinct setup methods depending on whether the merchant qualifies under the Inventory Information Approval System (IIAS) or the 90% Rule.

Option 1: IIAS (Inventory Information Approval System)

The IIAS method is typically used by merchants with POS systems that can distinguish eligible healthcare items at the point of sale.

Step-by-Step Process

  1. Submit the Deal for Approval
    Begin by submitting the merchant deal for processor approval.

  2. Register with SIGIS
    Visit www.sig-is.org to register and pay the required annual fee.

  3. Complete the Questionnaire
    The merchant must fill out a detailed questionnaire about their POS capabilities. Their POS provider should assist with this step.

  4. Select the Correct Acquirer

    • Critical Note: The merchant must select their Acquirer, not the frontend processor.

    • For example, while frontends like TSYS support IIAS, the backend processor (e.g., First Data) is what needs to be selected.

  5. Receive Merchant Codes
    Once registration is complete:

    • Visa assigns a MVV (Merchant Verification Value)

    • MasterCard assigns a MCID (MasterCard ID)
      These codes are sent to the processor (e.g., First Data) and loaded onto the merchant's account to allow for FSA/HSA card acceptance.

  6. Timeline
    Expect up to one month for Visa and MasterCard to return the codes and activate HSA/FSA acceptance.

Option 2: 90% Rule

This option is for merchants whose business consists mostly of mostly (90%+) of medical or healthcare-related sales.

Step-by-Step Process

  1. Submit the Deal for Approval
    Begin by submitting the merchant deal for processor approval.

  2. Register with SIGIS
    Go to www.sig-is.org, register the business, and pay the annual fee.

  3. Input Required Data During Registration
    Merchants must provide:

    • DBA Name

    • Street Address

    • Zip Code

    • OPT for Store Location Search: Select YES

    • Merchant IDs:

      • MasterCard ICA

      • Visa BIN

      • Merchant ID (Backend)

      • MasterCard Card Acceptor (Frontend)

      • VISA Card Acceptor (Frontend)

    • % of Qualified Medical Sales: Must be over 90%

  4. Recognition by Card Issuers
    After registration:

    • It may take up to one month for all Flex Card issuers to recognize the merchant location as an acceptor and update their files.

    • Important: Not all issuers are required to participate.
      Transactions may still decline, even if setup is correct.

  5. If a Transaction Declines
    If an HSA card is declined at the point of sale, the merchant may provide the customer with an itemized invoice for the eligible items purchased. The customer can then submit the invoice to their plan administrator to request reimbursement for any out-of-pocket expenses incurred.

Additional Notes

  • Medical Code Adjustments:
    If a merchant’s account requires a medical code update post-setup, the turnaround time is 24 hours.

  • Common Pitfalls to Avoid:

    • Do not mistakenly list the frontend processor during IIAS registration.

    • Make sure all merchant IDs are accurate and match processor records.

 

See Also: