Why is my FSA card being declined?
Asked by: Lauren Heller | Last update: November 23, 2025Score: 4.9/5 (4 votes)
Why is my FSA card getting declined?
However, keep in mind that an FSA card may be declined for other reasons, for example insufficient funds or incorrect card information. If your MCC is correct and your customer's card is declined you should ask your customers to contact their card-issuer directly.
Why would FSA be denied?
Common reasons might include:
You may not have enough FSA funds remaining in your account. The total amount exceeds your available FSA balance. Your FSA card could be inactive. Your FSA does not allow for certain items.
Why is my HSA card being declined when I have money?
Card declines can occur because funds have expired, new cards have been issued, the card does not have sufficient funds or various other reasons. You typically find the contact information for your plan administrator on the back of your FSA/HSA card.
Why is my Healthy Benefits card being declined?
The most common reasons why a benefit card may be declined at the point of sale are: The benefits card has not been activated. The benefits card has been used before the 24-hour waiting period after activation is over. The participant has insufficient funds in the benefit account to cover the expense.
Why Won't My FSA Card Work? - InsuranceGuide360.com
Why was my Flex card declined?
Some common reasons for an individual Flex card to be declined: The card is not activated. The card may have been suspended by the card issuer. The card has insufficient funds or no funds remaining.
What are the restrictions on the Healthy Benefits card?
Certain items such as soda, candy, chips, and other junk foods are usually not eligible for purchase with the card. Additionally, alcohol and tobacco products are never allowed to be purchased with a Healthy Benefits card. It is important to check with your specific program for a full list of eligible items.
What happens if I use my FSA incorrectly?
If the Benefits Card is accidentally or intentionally utilized for ineligible expenses, you are responsible for reimbursing your account. You will be notified if you have an ineligible expense and your Benefits Card may be deactivated until your account is reimbursed.
Why would my Healthy Benefits card be deactivated?
Your Benefits Debit Card will be temporarily deactivated if you fail to provide required documentation for Healthcare Flexible Spending Account (HCFSA), Limited Purpose Flexible Spending Account (LPFSA), or Health Reimbursement Arrangement (HRA) transactions.
Why can't I get my FSA money back?
For employees, the main downside to an FSA is the use-it-or-lose-it rule. If the employee fails to incur enough qualified expenses to drain his or her FSA each year, any leftover balance generally reverts back to the employer.
How to dispute FSA denial?
Submit your appeal request in writing to FSAFEDS for reconsideration. You must send FSAFEDS your written request within 60 calendar days of the initial decision. Be sure to sign your submission in order for it to be considered.
Is there a downside to FSA?
Use-it-or-lose-it refers to an IRS requirement that if you do not spend all the money you have elected into your account, that money remaining in an FSA after March 15 of the following year will be forfeited because it cannot be rolled over or refunded to you.
What happens if FSA expense is denied?
After an employee receives the denial letter, they must be given at least 180 days in which to appeal the denied claim. Once filed, the appealed claim must be decided in a “reasonable period” not later than 60 days after the appellate filing. Per ERISA, a plan's appeals procedures must: Be reasonable.
Is an HSA or FSA better?
Bottom line: Both HSAs and FSAs provide financial benefits for managing health care expenses. HSAs offer more flexibility and long-term growth potential, making them a valuable tool for future financial planning. Learn about HSA options from Aetna.
Why is my FSA being declined?
This can happen if: You may be at an ineligible location. You may be asking for more money than what you have elected and/or contributed. Your card might have been temporarily suspended because your account is not in good standing OR because there is additional information required for previous transaction(s)
Why does my HSA card keep declining?
Reasons for Declined HSA/FSA Transactions
There are several reasons why your client's HSA/FSA cards are declined, including: Insufficient funds. Funds have expired or do not roll over. Card has not been activated / set up by the client for utilization.
How to activate FSA card?
The simplest way to activate your new FSA debit card is from your dashboard. Go to livelyme.com/activate, log into your FSA, and follow the instructions to activate. If you also have a Lively HSA, you will need to do this for your HSA debit card separately if you haven't already.
Can I use FSA to pay for gym membership?
While some companies and private insurers may offer discounts on gym memberships, you generally can't use your FSA or HSA account to pay for gym or health club memberships. An exception to that rule would be if your doctor deems fitness medically necessary for your recovery or treatment.
What is the biggest disadvantage of the FSAs?
While FSAs offer several benefits, they also have limitations. The 'use-it-or-lose-it' rule can lead to the loss of unspent funds. Additionally, there are restrictions regarding eligible expenses and contribution limits, which are determined by the IRS and can change annually.
What can I spend my FSA money on?
You can spend FSA funds to pay deductibles and copayments, but not for insurance premiums. You can spend FSA funds on prescription medications, as well as over-the-counter medicines with a doctor's prescription. Reimbursements for insulin are allowed without a prescription.
Can I buy soda with a healthy benefits card?
Items that do not qualify include non-food and pet items, alcohol, baby formula, candy, chips, coffee shop items, desserts, fresh baked goods, soda, and tobacco. To check if an item is approved, members can download the Healthy Benefits Plus app, scan the product and it will advise if item is allowable.
Can I buy toilet paper with my OTC card?
OTC items are not eligible if they are normally used for general health, are not used to treat a medical condition (e.g. lotion, shampoo (except for products used to treat dandruff), toilet paper, lip balm) or are cosmetic in nature (e.g. teeth whitening products, wrinkle reducers).
Can I buy gas with my Healthy Benefits card?
This allowance can be used for Over-the Counter (OTC) Items, groceries, home utilities and gas at the pump.