If a transit benefit offers a payment card, program members should be able to use it to buy metro fares but not for electronics at Best Buy. This article will show how program administrators use Merchant Categories to set spending guardrails for the Health Wallet card.
How to select and approve Merchant Categories
Select the Benefit Builder tab.
Select Edit Program for the appropriate benefit program.
Select Select MCCs under Merchant Categories.
After selecting approved categories, select Add Codes.
Decide whether the updates apply to
Future benefits or
Future, pending, and active (all) benefits
MCCs, IIAS, and more
The Merchant Category list features curated groupings of processor tags. Some offer vendor-level approval, like merchant category codes (MCCs); others provide transaction-level approval, like inventory information approval system (IIAS).
Selected categories = approved card swipes
When you select a category, you’re authorizing future card transactions for that category.
Card transactions will be approved for selected categories.
Card transactions will be denied for omitted categories.
Strategy Tip
Allowing claims to be submitted for reimbursement provides members with a contingency plan for card declines.
Merchant category codes (MCCs)
Card networks (e.g., Mastercard, Visa) assign four-digit codes to businesses when they sign up to accept payment cards. These codes are based on the types of goods and services the companies provide. Grocery stores are assigned one code (5411), while office furniture stores are assigned another (5021). With Health Wallet Manager, you can leverage this payment processing data to design where card swipes will work and (not work).
Vendor controls
MCCs provide vendor-level controls, not transaction-level controls. Members can use their card for any product offered by an approved business.
Benefit Design Example
A plan designer selects MCC 4121 Taxicabs and Limousines as an approved category for a transit benefit. With this selection, transit program members can use their cards for any purchases at businesses with that processor tag.
Edenred
Edenred_Parking and Edenred_Transit are not technically MCCs, but they also offer a curated category of vendors based on processing tags. Select these categories for transit and parking benefit programs, respectively.
Inventory Information Approval System (IIAS)
IIAS stands for Inventory Information Approval System. Merchants who accept FSA (flexible spending account) or HSA (health savings account) cards must implement IIAS. Health Wallet Manager offers three IIAS codes: IIAS_HC Health Care Spending, IIAS_RX Pharmacy Spending, and IIAS_Vision Vision SPending.
Transaction controls
In contrast to MCCs, IIAS_HC Health Care Spending, IIAS_RX Pharmacy Spending, and IIAS_Vision Vision Spending offer transaction-level controls. When assigned, you approve card transactions for eligible products under that category.
Auto substantiation
IIAS offers auto substantiation, meaning that members don’t need to submit receipts for their FSA or HRA purchases made for IIAS products.
Example
If you approve IIAS_HC Health Care Spending, you’ll enable members to use their card for any product listed as eligible for healthcare products. It is also auto-substantiated, meaning the member will not need to submit a receipt for HRA or FSA benefits.
Suggested pairings
Here are some suggested pairings of IIAS codes with health spending benefit programs.
IAS_HC for healthcare FSA, HSA
IIAS_RX for healthcare FSA, HSA, RX benefits
IIAS_Vision for healthcare FSA, HSA, LP-FSA
Vendor and transaction controls
| Vendor-level | Transaction-level |
Example | 5411 Grocery Stores & Supermarkets (MCC) | IIAS_HC Health Care Spending |
Application | If selected, card transactions will be approved for any product offered by a business in this category. | If selected, card transactions will be approved for a list of eligible products. |
Note on Future, Active, and Pending Benefits
When you make Merchant Category updates to an existing benefit template, you’ll be given the option to apply those updates to active and pending benefits.
If you only update the template, your updates will apply to all future benefits launched. If you apply the changes also to active and pending benefits, your updates will be implemented for every benefit using that template.
Resources
For program pairing suggestions (e.g., MCCs for DC-FSAs), contact the Health Wallet Manager administrator for the Benefit Builder Cookbook.