FSA and Stored Value Cards

DeidreFR5

We are offering a FSA as a new benefit (through ADP) which will include Stored Value Cards (FSA debit cards). Is anyone using them, and what have your experiences been with them? Any other hints about FSAs are greatly appreciated.

LarryC

We were looking into debit cards for next year and decided against them. They are nice because employees don't have to mess around with filing reimbursement claims, but the cards have limited use. They will only work at places that have been set up with a "merchant code". Also, if the employee includes other items onto the card at time of purchase, it is the employer's responsibility to get the reinbursement from the employee. In addition, if an employee has $50 remaining on the card and wants to use it toward a $51 (or above) purchase, it won't work. In other words, it's hard to "drain" the card. In our case, some of our employees use pharmacys that are part of a grocery chain and/or department stores where the cards won't work.

Anyway, hope this helps, Deidre, and I'm glad to see someone else working today. Happy Friday to you and I love your name.