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How to Accept HSA and FSA Cards

How to Accept HSA and FSA Cards

Find out what HSA and FSA cards are, who can accept them, and how to do it.

Taxes might seem unavoidable, but there are a few important ways the government lets you off the hook. One of the best ways for millions of people to get a break on taxes is with an HSA or FSA account. 

Any medical-related business needs to be able to accept these cards from their patients or customers. What are these cards? And more importantly, what do you need to accept them? Let’s find out.

What is an HSA card

Let’s face it: healthcare is expensive in the United States. In fact, the average cost is $11,945 per person. So to help alleviate these costs, the United States Government allows patients to use a special kind of account called a Health Savings Account, or HSA, to pay for medical bills.

According to, an HSA is a “type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses”. In other words, you don’t pay taxes for the money that goes into an HSA. You can use these funds for medical expenses.

These HSA accounts can be opened through some banks, financial institutions, and health insurance companies. When you open an HSA account, you receive an HSA card, which is a debit card that directly accesses these funds.

Another way many save on medical expenses is using an FSA, which we will cover next.

What is an FSA card

An FSA is similar to an HSA: it’s an account to pay for out-of-pocket expenses related to health care. The money put into a Flex Spending Account (FSA) is also not taxed. And like an HSA, you get an FSA debit card to spend those funds on medical expenses.

The key difference between an HSA and an FSA is that an HSA is controlled by the individual, while the FSA is owned by an employer. So if an employee with an FSA leaves their job, they lose their FSA funds (funds from an HSA are theirs to keep or can be rolled over to another HSA).

Now that we know what HSA and FSA cards are and what they’re used for, it’s time to learn who needs to accept them. 

Who needs to accept them

Any merchant who offers healthcare or health-related goods or services should make sure their business can accept HSA and FSA cards. If they don’t, they’ll be missing out on countless customers or patients looking to spend their pre-tax dollars on medical costs.

Merchants who regularly accept HSA and FSA cards include:

  • Doctors, hospitals, and medical labs
  • Dentists and orthodontists
  • Medical supply stores
  • Optometrists and vision centers
  • Chiropractors

Some of the most common expenses paid for with HSA and FSA cards include:

  • Co-payments, co-insurance, and deductible expenses
  • Dental care (such as checkups, fillings, or crowns)
  • Vision care (such as exams, eyeglasses, or contact lenses)
  • Prescription drugs
  • Over-the-counter medical items
  • Chiropractic care

However, this list is not exhaustive. There are other merchants and expenses that fall into the category of medical expenses that are not listed here. For example, there is a category of businesses called 90% Merchants that can accept HSA and FSA cards (this refers to having registered with the IRS that 90% of gross sales are from prescriptions). 

How your business can accept HSA or FSA cards

In order for your business to accept HSA or FSA cards, you first need to be a licensed medical practice. 

From there, your payment processor will classify you with the correct Merchant Category Code in order to accept these cards and make sure everything runs smoothly with processing the debit payment from the card.

Fortunately, specialized equipment isn’t needed to accept HSA or FSA cards. Instead, any credit card machine can accept these cards so long as it is PCI compliant (this is to comply with HIPAA requirements of electronic health care transactions and security). 

Progressive Payment Solutions is proud to assist with HSA and FSA payment acceptance for doctors, dentists, chiropractors, and other health care merchants and professionals. Find out more about how we can provide your business with the equipment and PCI compliance needed to accept HSA and FSA payments.


Health Savings Accounts and Flex Spending Accounts are great ways for individuals and families to save money on medical costs by spending their pre-tax earnings on health expenses. Any business that is in the health industry can accept HSA or FSA cards without extra equipment as long as they meet the requirements.

Team up with a payment processor that knows how to care for your medical business and save you money on processing fees with Progressive Payment Solutions

Not only can we help you meet HIPAA’s requirement of being PCI compliant, but we can also eliminate processing fees via Cash Discounting and provide the lowest rates in the industry. Contact us today to start saving.

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