Understanding HSA & FSA Cards

What Is an HSA Card?

A Health Savings Account (HSA) card works like a debit card, allowing individuals with a high-deductible health plan (HDHP) to pay for qualified medical expenses directly from their HSA account.

Who Can Use It?

Anyone who:

• Is enrolled in a high-deductible health plan (HDHP)

• Is not enrolled in Medicare

• Meets other IRS eligibility requirements

Where and When to Use It:

You can use an HSA card:

• Anytime a qualified medical expense occurs

• At any healthcare provider or merchant that accepts debit cards and sells eligible products or services

Why Use an HSA Card?

• Streamlined payments

• Easy expense tracking

• Tax-advantaged contributions, earnings, and withdrawals for medical expenses

What Is an FSA Card?

A Flexible Spending Account (FSA) card also works like a debit card, but it's tied to an employer-sponsored FSA plan. It allows employees to pay for eligible out-of-pocket healthcare expenses using pre-tax dollars from their FSA account.

Who Can Use It?

Anyone who:

• Is employed by a company that offers an FSA

• Elects to participate during their employer's open enrollment

• Remains employed and enrolled in the plan

Where and When to Use It:

You can use an FSA card:

• Throughout the plan year or grace period (if allowed)

• At merchants and providers that accept FSA cards and sell eligible products/services

Why Use an FSA Card?

• Pre-tax funds reduce taxable income

• Immediate access to the full annual election amount at the start of the plan year

• Helps manage healthcare expenses without waiting for account balance to build

See also: 

• Eligible Merchant Categories & SIC Codes for HSA/FSA Acceptance
• How to Register for HSA/FSA Card Acceptance
• Accepting HSA/FSA Cards by Partner & Platform