An FSA card can only be used for health expenses, so if your FSA debit card still has money in it, then it would be best to use it before the year ends. However, there are some instances where it might be better to just use your bank debit card and then file for a reimbursement.

If you have a FSA debit card and a regular bank debit card, then you should understand when is the best time to use them. Continue reading on this post to learn when to use each and why it is good to have both ready!

Table of Contents

When to use an FSA debit card

Typically, you should use your FSA card to pay for health expenses. This can make it easier to manage your budget because your bank card will not be affected. The FSA card especially helpful when you get sent to the doctors unexpectedly and the bill racks up.

Your FSA debit card also reduces claims paperwork. Most of the places that accept a FSA debit card card are able to communicate electronically with the plan administrator. However, you should still keep all your receipts just in case further verification is needed.

When to use a bank debit card

You will have to use a bank debit card if the expense from a provider doesn’t have the required inventory system. You should always ask your provider to see if they accept FSA debit cards or not.If your medical provider does not accept an FSA card, then you would pay in another form and then file a claim along with the necessary documentation. Using a debit card is a good way to maximize any bonuses or perks such as points, miles, or cash back.

Why it’s good to have both cards

It is good to have both cards readily available because you never know what might happen. There are times where you still have a bunch of leftover money in your FSA account at the end of the year. These type of accounts have a “use it or lose it” policy so it makes sense to just spend it. However, there are also other situations where the bank debit card is better overall.

Bottom Line

If you have both FSA Debit Cards and Bank Debit Cards, it is important to understand when the best situation is to use them. If you have a flexible spending account, it’s best for you to take advantage of it by spending rather than losing.

For more posts like this, check out our list of credit card bonuses and bank guides!