FSA / Healthcare

[zangla]

Our business has processed cards via PayPal for over 5 years now.  We've recently had a complaint that an FSA card is declining.  Internal tests show the same result.  I called PP and was told that they do not accept Flexible Spending/FSA healthcare cards.  Does anyone know if this is something that recently changed.    I debated changing our business information to the HealthCare category but, in reading other posts, it seems like PayPal will just reclassify it to another non-profit category.  Does anyone have any background or similar experience with FSA's?

[PayPal_Joy]

Hi @zangla,

I'm sorry to hear that your customers are facing this issue. I understand how concerning this would be. 

Flexible Spending/FSA cards work the same as prepaid cards, which usually cannot be used on PayPal. They may be able to be linked to an account, but that doesn't guarantee they will work. There are times that the system will allow a payment to be made with a prepaid card, but that does not mean that it will work all of the time. Every transaction is reviewed and the Security System determines if it's possible for the transaction to be completed and what payment methods linked to an account may be available. 

I apologize for any inconvenience this is causing you.