Healthcare debit card acceptance regulations change, don't let
your yourself lose your customers to larger pharmacies that are
equipped with an Inventory Information Approval System (IIAS).
Let us help you increase retention efforts by upgrading your
payment acceptance system to include IIAS or SIGIS without data
Did you know?
Did you know 15 million FSA/HRA cards were
issued in 2000? Your customer base keeps growing
IIAS Merchants Increases
Customer Loyalty and Convenience for Merchants
The Inventory Information Approval System (IIAS)
allows terminals to identify eligible healthcare FSA/HRA
purchases by comparing the inventory control information (i.1.
UPC and SKU number) against a pre-established list of medical
expenses at the time of purchase. Merchants that install
an IIAS will be able to accurately identify qualifying items
being purchased with FSA/HRA debit cards, thereby increasing
convenience and loyalty among customers. Subscribe to IIAS
web-based POS $49 a month per store, where SIGIS Eligible Product List are
updated every night.
SIGIS is pleased to announce support for drug stores and pharmacies that
have met IRS requirements that on a store location by store location basis, 90% of the store's gross receipts during the prior taxable year consisted of items which qualify as medical expenses (including over-the-counter eligible healthcare items). SIGIS is supporting 90% Rule registration for drug stores and pharmacies that are SIGIS members. To register as a 90% Rule merchant, merchants must first be a SIGIS
member in good standing and have paid membership fees. The merchant completes registration at the SIGIS website
[Join SIGIS]. SIGIS will
communicate the Store ID/Card Acceptor ID to Issuer Processors. 90% Rule merchants
continue to accept payment cards in accordance with their current processes. There are no data
retention requirements for 90% Rule Program merchants. All of our
terminals are enabled to accept FSA/HRA debit cards, but you
have to manually identify eligible FSA/HRA products.
Terminals are $0 per free placement.
Eligible Products List
Category Codes and Descriptions
Dental/Laboratory/Medical/Ophthalmic Hospital Equipment and
- 5122 Drugs,
Drug Proprietaries, and Druggists Sundries
- 5912 Drug
- 5975 Hearing
Aids-Sales, Service, Supply Stores
Orthopedic Goods-Artificial Limb Stores
- 7277 Debt,
Marriage, Personal-Counseling Service
Doctors-not elsewhere classified
Opticians, Optical Goods, and Eyeglasses
- 8050 Nursing
and Personal Care Facilities
- 8071 Dental
and Medical Laboratories
- 8099 Health
Practitioners, Medical Services-not elsewhere classified
In addition to
the list above, merchant with an Inventory Information Approval
System (IIAS) in place. For example, Wal-Mart has a Discount
Store MCC of 5310, which is not listed, but they have an IIAS in
place so the card will be accepted there for eligible items
Some drug stores and pharmacies have the option of supporting
an IIAS or registering as a 90% Rule merchant. Additionally,
plan administrators may elect to support IIAS and/or 90% Rule
programs. The chart below highlights some of the key
characteristics and requirements of each program.
IIAS transactions enable real-time verification that
funds approved for debiting a FSA/HRA card account are
for eligible medical items, as required by the IRS.
Issuer/issuer processors utilize the IIAS data fields in
authorization request transactions to approve and
auto-substantiate eligible health care amounts.
After successful program registration, 90% Rule
merchants accept FSA/HRA payment cards just like any
other payment card; there are no additional technical
requirements for merchants.
support a list of 90% Rule merchant locations during
Any merchant that sells prescriptions/Rx or eligible
health care items.
Limited to drug stores/pharmacies that have stores whose
sales are primarily eligible medical items (90% or more
of sales for each store registered must be from
prescriptions or eligible health medical items).
Technical requirements for merchants
Merchants are required to make technical changes to
support the following:
- Use the SIGIS Eligible Product List to flag
eligible health care items in merchants inventory.
- Change payment card processing to add eligible
health care amounts to transactions.
- Support a list of FSA/HRA BINs to identify card
numbers to add IIAS data fields.
- Store transaction detail for approved FSA/HRA
card transactions in the event of an IRS audit.
Drug stores/pharmacies are not required to make any
Identification of prescription amounts
Yes, IIAS merchants have the option to include the
Prescription/Rx Amount in addition to the Total Health
Care Amount; this enables plan administrators to approve
more FSA/HRA transactions.
Includes the following:
5310 Discount Stores
5300 Warehouse Clubs
5499 Convenience Stores
5912 Drug Stores/Pharmacies
5122 Druggist/Drug Proprietaries
5960, 5964, 5965, 5969 Online
Various MCC Other Non-Health
Only the following:
5912 Drug Stores/Pharmacies
5122 Druggist/Drug Proprietaries
Cardholder required to submit a transaction receipt to
Because transactions are auto-substantiated, cardholders
are most likely not required to submit transaction sales
receipts; although it is recommended that cardholders
keep copies of transaction receipts.
Cardholders are most likely required to submit
transaction sales receipts; cardholders are recommended
to keep copies of transaction receipts.
Name of merchant list
IIAS Merchant List
90% Rule Merchant List
Transaction data retention
IIAS merchants are required to store the transaction
detail for approved IIAS transactions in the event of an
IRS audit for 5 years.
IIAS merchants are not required to re-certify unless the
merchant makes changes to software that affects
The IRS requires annual registration and re-attestation
that the sales of each registered store location are 90%
or more from prescriptions or eligible medical items.
Our Healthcare Merchant Services specialize in deploying and providing the lowest cost merchant services to
pharmacies, medical doctors, dental, chiropractor, optometry offices. Starting a practice is a huge challenge, so we are keeping it simple, low cost and quick for you.
What we need?
If you are a doctor's office or strictly medical supplier,
you just have let us know you need to be setup to accept FSA/HSA
card. You can use any terminals. If
you a pharmacist that is SIGIS Certified, please forward us the
email of your SIGIS Certification to be setup.
- Before You Begin
Please make sure you have the following information available..
[ ] Business contact information (address, business phone
[ ] Owner/principal Names
[ ] SIGIS membership and approval
[ ] US Business Federal Tax ID# (or SSN for Sole Proprietorship)
[ ] A check that tells you your routing & account number (for
your sales deposit)
[ ] Provide an EMAIL address and you will receive a copy of your
application. Check your email for status updates.
- Select Free Terminal
- Special Request
check [Enable FSA/HRA Cards IIAS
Merchant or 90% Rule Merchant]