Accepting HSA/FSA Funds

Doulado, in conjunction with our payments processor Stripe, does not restrict the use of any particular cards. Clients are free to use a variety of payment methods to make their transactions seamless. Stripe can accept Health Savings Account (HSA) and Flexible Spending Account (FSA) cards, but you may need to modify your connected account through Stripe support to adjust your MCCs.

HSA and FSA Card Restrictions

It's important to note that HSA and FSA cards might have restrictions imposed by the issuing bank or program. These restrictions can limit the cards to work only with specific merchant types. Even if your account is enabled to accept HSA or FSA payments, card issuers can still decline a payment. 

Merchant Category Codes (MCC)

Merchant category codes (MCCs) are four-digit numbers that credit card issuers use to classify individual purchases according the type of merchant where they were made. Merchant types are determined by the Merchant Category Code (MCC) assigned to your business. When setting up payments, doulas can choose the MCC that best fits their practice. However, Doulado does not provide specific advice on which MCC to select.

Selecting a MCC Code

In the process of setting up payments within Stripe, doulas have the flexibility to choose the MCC that feels right for their practice. This choice should align with the nature of the services offered. If unsure, it may be beneficial to consult with your financial advisor or the issuing bank for guidance.

Card Declination

In the event that a card is declined, it's essential to understand that many HSA and FSA accounts will still allow clients to reimburse themselves for medical-related expenses. Clients can use personal funds initially and then seek reimbursement from their accounts. Clients can keep records of their transactions and submit claims to their respective accounts for possible reimbursement. It's advisable to check with the specific HSA or FSA program for their reimbursement procedures.

Note: Enabling an account to accept HSA or FSA payments does not guarantee a card will not be declined. Card issuers are still at liberty to authorize or decline any payment as they would with any other type of credit card.

You can use Stripe to process HSA and FSA payments if you: 

  1. Contact Stripe to configure your account
  2. Set up medical products and services as your industry
  3. Use the appropriate Merchant Category Code (MCC)

You can reach out to Stripe support at any time here, and either use the chat box or request a phone call. They may request your website, business information or other credentials and can then help get your account set up to accept HSA/FSA cards.

To edit your Industry and related MCC, you can:

  1. Login to your Stripe account
  2. Navigate to Business Details
  3. Select Medical Services under the Industry drop-down menu
    1. Select the option to that best applies to your business




For more information directly from Stripe, access this article: Stripe Article