When you save money through a health savings account (HSA), funds aren’t dispersed to your bank. Instead, your money is placed into an account designated just for healthcare spending. While an HSA allows you to save for medical expenses while avoiding taxes on the money you set aside, you may be wondering how you’re supposed to spend these funds. After all, if the money doesn’t go into your bank account, you can’t exactly write a check or use your bank card.

HSA Credit and Debit Cards

Thankfully, spending your HSA funds for medical expenses is just as simple as using your standard debit or credit card. This is because most HSAs come with a special card that can be used just like a regular credit or debit card, but instead of taking the funds from your bank account, this card draws funds from your HSA. If you are issued an HSA debit card, you can use it for qualified purchases by swiping or chipping your card at a reader and entering your PIN. If you need health savings account resources, visit this website.

The Process of Using Your HSA Card

While your HSA card is one of the most important health savings account resources you have to access your funds, there are some things to know before pulling out your wallet. First, you want to make sure that you’re spending HSA funds on qualified expenses. The Internal Revenue Service provides a list of qualified expenses, but there are also some situations where qualification depends on special circumstances.

Next, you want to make sure the doctor’s office or medical retailer with whom you’re doing business accepts HSA funds and takes credit or debit cards. While it is rare to find a medical office or retailer that does not accept cards or HSA funds, it’s still better to check first before planning a medical service, procedure or purchase.

Finally, note that many HSA cards are provided as credit cards as opposed to debit cards. This means that these types of cards do not include the use of a PIN. Although the process of using an HSA credit card is as simple as swiping it at a card reader, this also means that you need to guard your card as one of your most important health savings account resources. Since these cards typically don’t require a PIN, someone could easily use a stolen card to run up fraudulent charges.

Read a similar article about how does a FSA work here at this page.