NEW Regulations effective January 2011 require merchants to re-register.
The IRS requires many merchants selling health care eligible products to support an Inventory Information Approval System (IIAS) by July 1, 2009. On this date, Flexible Spending Accounts (FSA) and/or Health Reimbursement Arrangement (HRA) cards can only be used at drug stores or pharmacies that have implemented an IIAS system. Merchants with healthcare related MCCs (doctors offices, for example) will be able to continue to accept these cards as usual without the implementation of an IIAS system.
The Special Interest Group for IIAS Standardization (SIGIS) association is composed of a broad range of participants who manages an IIAS for the IRS requirements.
Furthermore, MasterCard and Visa requires merchant registration upon successful IIAS implementation. Please note that registration forms are to be completed once a merchant has been successfully certified and listed on the SIG-IS website. Visa Merchant Verification Value (MVV) and MasterCard Assigned ID (MCID) assignment may take up to ten business days upon accurate submission.
Merchants must register to continue to accept FSA cards. Read more SIGIS FAQs and contact us for help.