What are the benefits/risks of supplying a debit card to employees for FSA claims?

Question

What are the benefits/risks of supplying a debit card to employees for FSA claims?

Answer 1

Pros;  No manual claim filing, payment for services occurs during swipe of the card (thus no out of pocket payment).

Cons; Depending on your FSA Carrier, swipes may not go through if the Doctor, hospital, pharmacy , store (For Over the Counter Items, etc) is not a recognized agent in their systems.  Questionable claims that do not fit a regular copay (etc) may be required to be substantiated via paperwork.

Answer 2

Here is a very self-explanatory article and has alot of the answers to questions you probably didn't even think to ask:

http://en.wikipedia.org/wiki/Flexible_sp...