Skip to main content
Menu File a Claim Login
American-Fidelity-logo
Menu
Menu File a Claim Login
American-Fidelity-logo
American Fidelity Logo American Fidelity Logo
  1. Strategy
      •  
      • Employee Benefits
      • Communication and Education
      • Enrollment and Admin
      • HR Assistance
      • Tax Savings
      • Compliance Updates
      •  
  2. Products
      •  
      • Benefits
      • Dependent Verification
      • HR Technology
      • Reimbursement Accounts
      • Retirement Savings
      • Section 125
      •  
  3. Why Us
      •  
      • For Education
      • For the Public Sector
      • For Automotive
      • Account Managers
      • Customer Testimonials
      •  
  4. Blog
      •  
      • Benefits Strategy
      • Reimbursement Accounts
      • Supplemental Benefits
      • Customer Stories
      • Compliance Updates
      •  
  5. Support
      •  
      • COVID-19
      • Employer Assistance
      • Videos
      • Contact Us
      •  
  6. Claims
      •  
      •  
Login
 
 
American Fidelity Logo

Why is Substantiation Required for Certain Debit Card Expenses?

May 12, 2020

2 minute read

Category: Reimbursement Accounts

Learn more about this blog article

The Internal Revenue Code (IRC) allows participants to reduce their taxable income by participating in a Healthcare Flexible Spending Account (HCFSA). In exchange, the IRC requires proof for eligible expenses.

For expenses that aren’t electronically validated at the time of debit card swipe, documentation must be submitted to prove eligibility of the expense. Submitting documentation is the fastest way to validate a claim.

Questions often come up around debit card substantiation. To help participants best use their account, we’ve addressed a few recurring frequently asked questions.

Why is substantiation requested when I use my Benefits Debit Card for prescriptions that were less than the copay amount?

Typically, expenses require documentation when the prescription amount doesn’t match the copay amount set up in our system. For example, documentation may also be requested when the Merchant Category Code (MCC) does not reflect a prescription was purchased at a certified pharmacy.

Why do dental and vision expenses require substantiation? 

Our system uses copays for dental and vision expenses. However, if a receipt was requested, the amount did not match the copay structure from the employer’s plan, or the expense may not be IRS-approved.

  • Dental expenses: For example, cosmetic procedures, like teeth whitening, are not IRS-approved expenses. For this reason, substantiation will be requested.
  • Vision expenses: As an example, if eyeglasses are purchased and the glasses have a warranty, the warranty is not an IRS-approved expense. In this case, substantiation will be requested.

How can I use my card to pay for an expense that is greater than my account balance?

Expenses exceeding the account balance will not go through on your card. If you know your exact account balance, you can ask the merchant to swipe your card for that amount or less. Otherwise, a claim can be submitted for the expense and we will reimburse for the amount remaining in your account. 

How do I submit documentation?

  • Log in to your online account or AFmobile®
  • Select the Additional Documentation button
  • Select Reimbursement Account(s)
  • Select the pending transaction and click Add Receipt to upload documentation.

For a full list of frequently asked questions, visit americanfidelity.com/debit-card.

 

This blog is up to date as of April 2020 and has not been updated for changes in the law, administration or current event.

  • Tags:
  • FSA

Share:

 

Shop for Eligible Items on the FSA Store

You may purchase FSA-eligible items online at the FSA Store. Browse medical supplies, over-the-counter medication, prescriptions, and more.

Visit FSAStore.com

 

Related Reimbursement Articles

 

End of year tips for reimbursement accounts

December 20, 2022

4 minute read

The end of a calendar year can be a busy season. As you prepare for the new year, check out these tips for managing your reimbursement account.

  • Tags:
  • HCFSA
  • FSA
  • HRA
  • HSA

COVID-19 Relief Ending: Last Minute HCFSA Buys

December 20, 2022

1 minute read

COVID-19 relief is coming to an end. Don’t let your unused HCFSA funds slip away. Here are few tips on how to spend them.

  • Tags:
  • Compliance
  • HCFSA
  • FSA

FSA Mistakes to Avoid: Spouse & Dependent Rules

December 06, 2022

3 minute read

There are specific rules for annual contribution limits and the use of Healthcare FSAs or Dependent Care Accounts funds (DCAs).

  • Tags:
  • FSA
  • HCFSA
  • DCA
 

ESB-8051-0420

American Fidelity Assurance Company
americanfidelity.com

https://americanfidelity.com/blog/reimburse/debit-card-substantiation/

Site Map

About Us

News Center

Careers

Contact Us

© 2022 American Fidelity Assurance Company

  • Privacy Notices |
  • Report Fraud |
  • Terms of Service |
  • Licensing |
  • Special Notices |
  • Cameron Enterprises

ESB-8051-0420

  • File a Claim
    Login
  • Home
  • Benefits Strategy
    • Employee Benefits
    • Communication and Education
    • Enrollment and Admin
    • HR Assistance
    • Tax Savings
    • Compliance Updates
  • Products
    • Benefits
    • Dependent Verification
    • HR Technology
    • Reimbursement Accounts
    • Retirement Savings
    • Section 125
  • Why Us
    • For Education
    • For the Public Sector
    • For Automotive
    • Account Managers
    • Customer Testimonials
  • Blog
    • Benefits Strategy
    • Reimbursement Accounts
    • Supplemental Benefits
    • Customer Stories
    • Compliance Updates
  • Support
    • COVID-19
    • Employer Assistance
    • Videos
    • Contact Us
  • Claims
  • Careers
    • Corporate Careers
    • Sales Careers
  • About Us
  • Site Map

Popular Topics:
  • Register for an Account
  • Forms
  • Unused FSA Funds
  • HCFSA Eligible Expenses
  • Carryovers, grace periods and runoff periods
  • HSA Eligible Expenses
  • HSA Tax Forms
  • Disability Tax Forms