Are you running a collection agency that caters to the healthcare / medical industry? Or are you a healthcare service provider who wants to improve your payment collection system? If so, you have probably wondered about whether or not your company can accept Health Savings Account / HSA Cards. After all, it is your goal to make your collection more efficient and convenient for customers.
But what are Health Savings Accounts in the first place? These are tax-advantaged medical savings account available to taxpayers (in the US) who are enrolled in a high-deductible health plan (HDHP). The contributions put to such accounts are not subject to federal income tax at the time of deposit.
1. Your merchant category code eligibility (your merchant service provider should be able to help on this)
One important requirement is that your business should have an eligible merchant category code, which is determined by an HSA card’s particular plan (assigned to your business account, set by the card associations).
Below are are some examples of MCC eligible for HSA cards acceptance:
4119 – Ambulance Services (Dependent on Plan Administrator)
5976 – Orthopedic Goods-Artificial Limb Stores
7277 – Debt, Marriage, Personal-Counseling Service (Dependent on Plan Administrator)
8011 – Doctors-not elsewhere classified
8021 – Dentists, Orthodontists
8031 – Osteopathic Physicians
8042 – Optometrists, Ophthalmologists
8043 – Opticians, Optical Goods, and Eyeglasses
8050 – Nursing and Personal Care Facilities
8062 – Hospitals
8071 – Dental and Medical Laboratories
8099 – Health Practitioners, Medical Services-not elsewhere classified
2. Find a reliable merchant account service provider
There are many merchant service providers you can find around, but choose one that has been proven to be reputable in the industry. Your criteria should include affordable rate or processing fee, the technological innovation they have, professional customer support, system seamless integration, expertise on HSA payment processing, among others.
For more information about HSA card acceptance, contact us here at Swipebox at (720) 277-0648