Why is Substantiation Required for Certain Debit Card Expenses?

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.

Why is Substantiation Required for Certain Debit Card Expenses?

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