Employer Flex Benefit Card » Troubleshooting

What happens if an intended expense exceeds the balance on a Flex Benefit card account?

Most likely the card swipe will be denied for insufficient funds. In some cases, a merchant will allow a “split” or partial payment made by Flex Benefit card and the balance by some other form of payment the cardholder chooses.

Most common reasons for card denial at the counter:

• The card has built in technology that allows its use at certain merchant locations. Some merchants use a code that is not built into the card technology and in those cases, the card will be denied. In some cases merchants that allow card swipes for eligible expenses can be added; you may contact EBS Customer Service to check status or make a request for a certain qualified vendor/merchant.
  
  
• If the card is used at a location that does not provide services or products considered “eligible” under plan guidelines, the card will be denied. For example, the card cannot be used at a restaurant or gas station.
  
  
• The card has insufficient funds available to support the charge the cardholder is trying to make. It is the employee’s responsibility to know their card balance. Account balances may be checked via the Account Login buttons throughout the EBS web site and in the Member Center. Additionally, balances can be checked via our automated phone system at 800-EBS-FLEX.
  
  
• The card has been suspended or terminated. If employment has been terminated, the card will no longer work. If an employee has failed to respond to requests for receipts to verify purchases made by the card, the card may be suspended until the request requirements have been fulfilled.
  
  
• The card’s built-in technology will make an attempt to electronically substantiate or verify the eligibility of an expense. In some cases, this technology does not recognize the type of expense and the card will be denied. This may often be the case at pharmacies, as the card’s technology will contain specific prescription co-payment amounts. Therefore, if the employee attempts, for example, to purchase a pack of gum with their prescription and wishes to use the card to pay for the entire purchase, the card will be denied because the amount doesn’t match the predetermined co-payment amount.
  
  

What if an employee used the card for an expense not covered by the FSA or Transit plan for which it was intended?

If used for an expense that is not considered eligible by IRS guidelines in effect for the program in which the employee is actively participating, they will be required to repay that amount back to their account. If the employee fails to do so, the account may be considered out of compliance and that employee may be responsible to pay taxes on those amounts considered ineligible.

An employee will be charged A MINIMUM $10 FEE for each transaction in which the card was used for a non-qualified expense — this fee will be deducted from their Flex Benefit card account or, the employee will be required to pay that amount to EBS. In some cases, an employer may choose to deduct the amount from the employee’s paycheck to cover the expense.

Will EBS request information about card purchases not covered by the FSA or Qualified Transit plan(s)?

Yes. EBS will send a request for substantiation to the employee. The employee will be asked to send in receipts for purchases made where eligibility for that expense cannot be electronically verified. The employee will be required to pay a $10 fee for each transaction that is not for covered expenses or cannot be verified as eligible.

If an employee fails to respond to requests for receipts, EBS is required to notify the employer of cardholder status. In some cases, the card may be suspended until the requirement is satisfied.