As a small business owner, you’re always looking to attract more customers and make transactions as seamless as possible. If your business sells health-related products or services, you might wonder if you can accept Health Savings Account (HSA) and Flexible Spending Account (FSA) card payments. With millions of people using these tax-advantaged accounts for eligible expenses, accepting HSA/FSA payments can greatly increase sales and improve customer convenience.
But is your small business eligible to accept HSA cards and FSA cards? And if so, how do you set up the right payment processing system?
What Types of Businesses Can Accept HSA/FSA Payments?
Not every business can accept HSA and FSA cards. These accounts are designed specifically for medical and health-related expenses, so businesses must sell eligible products or services that align with IRS guidelines. Some common businesses that accept FSA cards and HSA payments:
● Healthcare Providers – Doctors, dentists, chiropractors, physical therapists, and mental health professionals.
● Pharmacies and Medical Supply Stores – Businesses that sell prescription medications, first-aid supplies, and other eligible medical products.
● Vision and Dental Providers – Optometrists, eyeglass retailers, orthodontists, and dental clinics.
● Wellness and Therapy Services – Acupuncture, massage therapy (when prescribed by a doctor), and other alternative health treatments.
● Fitness and Health Stores – Some gym memberships, fitness programs, and wellness items qualify if they are prescribed for medical reasons.
If your business falls into one of these categories, there’s a good chance you can start accepting HSA and FSA card payments.
How Can Your Small Business Accept HSA/FSA Payments?
Your business must sell products or services that meet the IRS’s definition of “qualified medical expenses.” The easiest way to determine eligibility is by reviewing the IRS list of HSA/FSA-approved expenses. If your offerings fall within these categories, you may qualify to accept HSA cards and FSA cards.
Payment Processing Requirements
HSA and FSA debit cards function differently from regular credit or debit cards. These cards are linked directly to tax-advantaged accounts, and transactions must be coded properly to ensure compliance. Your business must:
● Use a payment processor that recognizes HSA/FSA cards.
● Ensure your point-of-sale (POS) system can differentiate between eligible and non-eligible purchases.
● Properly code transactions to comply with IRS rules.
If your payment processor does not support HSA/FSA payments, customers may still be able to use their accounts through reimbursement—meaning they pay with another method and submit a claim later. However, direct acceptance of HSA/FSA cards simplifies the process for both you and your customers.
How to Set Up HSA/FSA Payment Acceptance
1. Choose the Right Payment Processor
Not all payment processors support HSA and FSA cards. When selecting a processor, look for one that:
● Specifically supports HSA/FSA transactions – Some processors automatically recognize and code eligible expenses correctly.
● Offers split-tender functionality – This allows customers to pay for eligible and non-eligible items in a single transaction using multiple payment methods.
● Provides HSA auto-reimbursement features – Some processors can automatically submit claims for eligible purchases, reimbursing customers without extra steps.
2. Ensure Proper POS System Integration
If you already have a point-of-sale system, check if it can process HSA and FSA cards. Some POS systems require an upgrade or additional configuration to handle these payments correctly. If you run an online store, verify that your e-commerce platform can label eligible products and support HSA/FSA payments.
Marketing Your HSA/FSA Payment Acceptance
Once your business is set up to accept FSA cards and HSA cards, make sure customers know. Many actively seek businesses that accept these payments. Use in-store signage at checkout to highlight HSA/FSA acceptance. For online stores, update your website with an FAQ or banner, and consider using a payment processor that can tag eligible products, making it easier for customers to identify eligible items.
Promote it through social media and email marketing, showcasing eligible products. Provide customer education through simple guides or blog posts explaining how they can use their HSA/FSA funds at your business.
With millions of Americans using HSA and FSA funds each year, offering this payment option can help your business grow while making purchases more convenient for customers. If you’re ready to expand your payment options, choose a processor that supports HSA/FSA transactions and ensure your system is optimized for compliance.
Accepting HSA and FSA payments is smart for any small business looking to serve health-conscious consumers more effectively.