Skip to main content
  • Solutions for Employers

    Enhance your benefits program with a custom strategy that not only engages your employees and helps retain your talent—but also lightens the load on HR.

    How We Help
    • Strategic Partner
    • Professional Enrollment
    • Benefits Education
    • Total Benefits Solution
    • Benefits and Services
    Who We Serve
    • Education
    • Public Sector
    • Automotive
    • Manufacturing
    • Healthcare
  • Resource Library

    Explore our catalog of blog articles, educational videos, customer stories, and more.

    View All Resources

    Resource Types
    • Blog Articles
    • Videos
    • Customer Stories
    • Tools
    • Help Center
    • All Resources

    An Employer's Guide to a Successful Enrollment

    Download the free how-to guide to get your enrollment strategy on the right path. 

    Download Now
  • Help Center
  • Login
  • Strategy
  • Reimbursement Accounts
  • Supplemental Benefits
  • Customer Stories
  • Compliance
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:

FSA Store

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

Purchases may result in a small commission to American Fidelity at no additional cost to you.

Related Reimbursement Articles

What Are Dependent Care FSA-Eligible Expenses?

April 22, 2025

Dependent Care Accounts (DCAs) may help provide coverage for everyday dependent daycare expenses.

  • Tags:
  • FSA

How HSAs Can Benefit Single Parents

February 18, 2025
5 minute read

As a single parent, an HSA can ease healthcare costs, reducing stress with its financial benefits for future medical expenses.

  • Tags:
  • HSA

Carryovers, Grace Periods, and Runoff Periods - What Are the Differences?

January 14, 2025
5 minute read

“Use or Lose!” – Deciphering the difference between carryover provisions, grace periods, and runoff periods

  • Tags:
  • FSA
  • HCFSA
  • LPFSA
  • DCA
Our logo
  • Strategic Partner
  • For Education
  • For the Public Sector
  • For Automotive
  • For Manufacturing
  • For Healthcare
  • Professional Enrollment
  • AFenroll®
  • Benefits Education
  • Total Benefits Solution
  • Culture and Engagement
  • Benefits and Services
  • Resource Library
  • Blog
  • Customer Stories
  • Tools
  • Help Center
  • Forms
  • AFmobile® App

Contact Us

Careers

  • About Us
  • Annual Report
  • Community Giving
  • News Center
  • facebook
  • Youtube
  • linked-in

© 2025 American Fidelity Assurance Company

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

ESB-8051-0420