In order to accept HSA or FSA cards for transactions, merchants must have an eligible MCC code or 90% registration.
Eligible MCC Code
An HSA/FSA card’s particular plan will define a list of eligible Merchant Category Codes (assigned to your business account, set by the card associations). These merchant categories are defined as health care providers because the services they offer are strictly health care related. MCC examples are below:
- 5975 – Hearing Aids-Sales, Service, Supply Stores
- 4119 – Ambulance Services (Dependent on Plan Administrator)
- 5976 – Orthopedic Goods-Artificial Limb Stores
- 7277 – Debt, Marriage, Personal-Counseling Service (Dependent on Plan Administrator)
- 8011 – Doctors-not elsewhere classified
- 8021 – Dentists, Orthodontists
- 8031 – Osteopathic Physicians
- 8041 – Chiropractors
- 8042 – Optometrists, Ophthalmologists
- 8043 – Opticians, Optical Goods, and Eyeglasses
- 8049 – Chiropodists, Podiatrists
- 8050 – Nursing and Personal Care Facilities
- 8062 – Hospitals
- 8071 – Dental and Medical Laboratories
- 8099 – Health Practitioners, Medical Services-not elsewhere classified
SIGIS Registration
90% Registration
This registration must be completed with SIGIS Organization. The program is limited to drug stores or pharmacies (MCC 5912, 5122) that have stores whose gross sales are at least 90% from prescriptions and over the counter (OTC) eligible healthcare products. If you are interested in participating in the 90% Program, you will need to work with the SIGIS Organization directly for the registration process.
Direct merchants to get more information at https://www.sig-is.org or have them contact merchants directly.
- SIGIS Memberships: https://www.sig-is.org/membership/member-services/description-of-membership-tiers-and-fees
- SIGIS Helpdesk Phone number: 925-855-3228
- SIGIS Helpdesk Email address: help@sig-is.org
Inventory Information Approval System (IIAS)
The IIAS is an inventory system that sorts a customer’s basket at the POS into items eligible for HSA/FSA and items that are not. At any non-medical retailer (or one without an eligible MCC defined by the cardholder’s plan), IIAS compliance is required to accept HSA/FSA. IIAS applies to all mass, discount, grocery, chain drug, mail order and some pharmacy merchants. The IRS adopted this requirement in 2006.
HSA/FSA cards are prepaid debit cards (Visa and MasterCard) that can be accepted as Signature Debit or PIN Debit. The cards have no extra level of data associated with them, but they are associated as HSA/FSA to the networks.