Quick answer: For most wellness products, no - and that's completely normal. Most gyms, yoga studios, pilates studios, large retailers, smaller wellness e-commerce stores, and supplement stores aren't set up to accept HSA/FSA cards. The standard path is to pay with your regular credit or debit card and then submit for reimbursement through Crates. You still save the same amount of money either way, and Crates makes the process super simple - upload your receipt and get reimbursed.

It's not about eligibility - it's about merchant codes.

Every business has a "merchant category code" (MCC) that tells payment processors what kind of store they are. HSA/FSA cards are programmed to only work at merchants coded as medical providers - pharmacies, doctor's offices, medical supply stores, that kind of thing.

Your gym is coded as a "fitness facility." Apple's website is coded as an "electronics store." Supplement companies are coded as "health food stores." Even though your purchase IS eligible with an LMN, the card system doesn't know that. It just sees a non-medical merchant code and declines the transaction.

This is an industry-wide limitation, not a Crates issue. Anyone with an LMN - whether from Crates or from their personal doctor - runs into this.

The good news: you save exactly the same amount whether you pay with your HSA/FSA card or reimburse after the fact. Here's the process:

That's it. The money comes back to you tax-free, just as if you'd used your HSA/FSA card at checkout.

Bonus: Paying with a regular credit card and reimbursing is actually better in some ways: - You earn credit card rewards/points on the purchase - You have a cleaner paper trail for your HSA/FSA admin - If you have an HSA, you can let the money in your account stay invested and continue to grow through compound interest. As long as you save the LMN and the receipt associated with that purchase, you can reimburse yourself at any point in the future - so you get credit card points AND compound interest on your HSA balance

Your HSA/FSA card works automatically at: - Pharmacies (CVS, Walgreens, etc.) for OTC medications and eligible items - Doctor's offices and medical clinics - Dental offices - Vision centers - Medical supply stores - Online retailers that have set up HSA/FSA payment (some, not all)

Some online retailers have started accepting HSA/FSA cards for specific eligible items (you might see an "FSA/HSA Eligible" badge on Amazon, for example). But availability is inconsistent and the eligible item list can change.

Yes! Your Crates membership fee is HSA/FSA eligible. You can either use your HSA/FSA card to pay for your subscription or pay with a regular card and submit for reimbursement.

If I can't use my HSA/FSA card, how is the product "eligible"? Eligibility and card acceptance are two different things. The IRS determines eligibility based on medical necessity. Card acceptance is determined by merchant codes and payment processing. A gym membership can be 100% IRS-eligible with an LMN, even though the gym doesn't accept HSA/FSA cards. Reimbursement is the standard path for wellness products.

Is reimbursement more complicated than just swiping my card? It's a few extra steps, but Crates handles most of the work. You upload your receipt, click reimburse, and we take care of the documentation. Most people find it takes about 2 minutes.

Does it matter which credit card I use to pay? Nope. Use whatever card you want. Some people specifically use a rewards card to earn points, then reimburse from their HSA/FSA. Double win.

My HSA/FSA card worked at one store but not another. Why? It depends on the merchant category code. A store selling mostly medical products might be coded as a medical supplier (card works), while another store selling similar items might be coded differently (card gets declined). It's inconsistent, which is why reimbursement is the more reliable path.

For HSA specifically — do I even need to submit documentation to withdraw? This is an important distinction. Most HSA admins (Fidelity, etc.) let you withdraw funds without submitting any documentation — they just process the transfer. You keep your itemized receipts and LMN for your own records in case the IRS audits you, which they have the right to do up to 10 years post-transaction. FSA admins, on the other hand, do verify claims before releasing funds.

Card declined? No worries - just pay with your regular card and we'll walk you through the reimbursement. Chat with us or email [email protected] if you need a hand.