Understanding HSA and FSA Card Usage in Doulado

Doulado now supports a broader range of HSA and FSA cards, making it easier for clients to use their healthcare funds to pay for doula services. This update improves how certain cards are saved and processed, especially those that require more precise merchant identification.


Some HSA and FSA cards have stricter requirements when being added as a payment method. In the past, certain cards could not be saved successfully because Doulado's merchant category code (MCC) was being recognized before the individual doula’s or business' MCC. This caused issues when the payment method was being added or saved, even if the card might have worked during an actual payment attempt.


Some cards are more sensitive during the initial setup phase, requiring exact merchant details to be recognized properly.


New Feature: Direct Card Linking

With this update, clients now have the option to link their HSA or FSA card directly to your Stripe account when:

  • Adding a new payment method, or
  • Paying an invoice

This option ensures the card is associated with the correct merchant codes tied specifically to your doula practice or business' Stripe connection. As a result, eligible HSA and FSA payments are more likely to process successfully.

To learn more about setting up your account to accept HSA/FSA, check out this article!

What This Means for Your Clients

When a client checks the "restricted use" box to link their HSA/FSA card:

  • The card is securely saved to their journey with your business
  • Future payments with your services become easier and more reliable
  • The likelihood of declined transactions due to MCC mismatches is reduced

There is a possibility that an HSA or FSA card can be saved and used to pay an invoice without selecting this option, as some cards have fewer restrictions. However, if a client attempts this and the payment is declined, encourage them to try again and select the HSA/FSA card option to ensure proper processing.

Important Limitation to Know

If a client wants to use the same HSA or FSA card with another doula or business, they will need to add and link the card again. This is because when the card is saved with "restricted use", it is saved specifically in connection with your business’s payment setup, not as a universal payment method across all providers.


How to Guide Your Clients

You can help your clients by:

  • Encouraging them to select the “this card has restricted use” option when adding an HSA/FSA card
  • Letting them know this step improves approval rates
  • Reassuring them that this is normal behavior for healthcare-related payment cards

This update is designed to reduce payment friction and help ensure clients can successfully use their healthcare funds for doula care.