Comments on: An overlooked way to boost flex account participation

By: Karen

Karen — Thu, 21 Aug 2008 18:02:55 +0000

I agree with Dawn & Lauren. Nice concept, however, the reality and requirements for use are another story. Employees must submit a receipt after using the debit card. Subsequently, this in turn has become time-consuming since I know employees are using our fax and accomplishing during company time. And, yes, routinely the cards are suspended. Ultimately, if the receipt is not provided within a specified time frame, the amount is deducted via payroll. I have some employees who have declared that they cannot be bothered to activate their card.

By: Lauren

Lauren — Fri, 18 Jul 2008 12:49:01 +0000

The debit card is a great idea in theory, but at our company, I have gotten nothing but negative feedback about it. Not all providers and stores accept the debit card (as we all know). Additionally, our carrier requests a receipt for nearly every charge. If the receipt isn’t received in time, the card is suspended. Unfortunately, the company sends these requests for receipts as encrypted PDF files and even though they have been told how to open them, employees still become confused. Overall, the debit card has been nothing but a headache. I’ve never even bothered to activate mine.

By: Dawn

Dawn — Thu, 17 Jul 2008 21:27:18 +0000

We use a popular payroll company to manage our FSA, and they do provide a debit card to all employees, which was a big selling point when we switched from an outside “group” that handled this for us previously (800 employees here). Anyway, I think many will drop the service next year, as the previous group rarely required a receipt to backup the charge, while the current plan requires a receipt faxed for every single charge, and half the time the fax fails. *sigh*

By: Jill

Jill — Thu, 17 Jul 2008 18:31:57 +0000

We use an even more employee friendly way to encourage participation by offering them debit cards with their FSA amount!

By: Shannon

Shannon — Thu, 17 Jul 2008 18:04:24 +0000

Our participation in FSA increased over 400% with the introduction of the debit card. Particants love the fact they don’t have a payroll deduction then pay out of pocket for services and then wait on reimbursement. Most retailers are now compliant with IIAS which auto adjudicates the swipe and virtually eliminates claim submission.

By: Cindy

Cindy — Thu, 17 Jul 2008 17:52:14 +0000

There is a slight typo in your article. Fifth paragraph “Typically, TPAs require employees to submit a voided check if the employee wants the money direct deposited to a savings account.” Savings account should be CHECKING ACCOUNT. You address savings account in the next sentence.