ProBenefits Flex Debit Card Purchases Now Automatically Adjudicated at Wal-Mart

Wal-Mart has now implemented an inventory-based adjudication system that will make it easier for ProBenefits customers to use their flex debit cards for FSA purchases at all Wal-Mart retail outlets.  The new system allows purchases made with mySourceCard flex debit cards to be auto-adjudicated for eligible FSA purchases.  This means that when participants make eligible purchases at Wal-Mart, they will not need to submit documentation to verify the claim.

As reported in our Compliance Alert dated December 29, 2006, the IRS issued guidance allowing the use of electronic payment/debit cards at non-healthcare related merchants that have Inventory Information Approval Systems in place.  These systems are designed to electronically track and verify items that are FSA-eligible, allowing only those items to be charged on the flex debit card.

As a result, participants do not need to separate items at checkout prior to swiping their flex debit card.  If the participant is purchasing both FSA-eligible and ineligible items, the system will separate the FSA-eligible items from the total bill and the card can be swiped for the FSA items based on the total given.  The participant may then pay for any non-FSA items with standard methods of payment.

Wal-Mart becomes the sixth merchant to have this inventory-based system for auto-adjudication that works with ProBenefits’ mySourceCard.  The others are Walgreens, DrugStore.com, VisionDirect.com, LensMart.com and LensQuest.com.  Should you have any questions about using your mySourceCard at any of these locations, please contact our office at 919-403-1986.

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February 28, 2007

Hill, Chesson & Woody
Employee Benefit Services

194 Finley Golf Course Road, Suite 200,
Chapel Hill, NC 27517
Phone: 919.403.1986
Fax: 919.913.0237

www.hcwbenefits.com