Flexible spending cards

Hi, @lizs42. With QuickBooks Online (QBO), Health Savings Account (HSA) and Flexible Spending Account (FSA) cards can be accepted, but there are specific requirements to be aware of.

Based on our guidelines, only merchants with IRS-approved medical, dental, vision, and pharmacy practitioners can accept these cards. If your business isn’t set up under one of these categories, that would explain why the transactions are being declined. You can view your current industry type in the Merchant Service Center.

Another possibility relates to the card side; even if eligible, transactions can still fail due to:

• Insufficient funds
• Expired card
• Spending limits on the card

You can advise your customer to call the number on the back of their card to check the status of their FSA/HSA card. For more information, please refer to this article: Accept flexible spending cards.

If you believe you meet the requirements, I recommend contacting our QuickBooks Payments team so they can review your account and make sure everything is set up correctly.  

If you have any further questions, please don't hesitate to ask them. I'm here to help.