Quick Answer: HSA/FSA cards often get declined at wellness retailers (gyms, Amazon, supplement brands) because the merchant's category code doesn't match what your card expects. This is completely normal and doesn't mean the product isn't eligible. The solution: pay with a personal card and submit for reimbursement.
Why Cards Get Declined
When you swipe or enter your HSA/FSA card, the payment processor checks the Merchant Category Code (MCC) - a 4-digit code that identifies what type of business the retailer is.
HSA/FSA cards are programmed to work at merchants coded as medical providers (pharmacies, doctor offices, medical supply stores). But most wellness retailers are coded differently:
Retailer Type | MCC Category | HSA/FSA Card Result |
Pharmacy | Medical | ✅ Usually works |
Doctor's office | Medical | ✅ Usually works |
Gym/fitness studio | Fitness/recreation | ❌ Usually declined |
Amazon | General retail | ❌ Usually declined |
Supplement brand website | General retail | ❌ Usually declined |
Fitness tracker brand | Electronics/retail | ❌ Usually declined |
This doesn't mean the purchase isn't HSA/FSA eligible. It just means the card system can't verify eligibility at the point of sale.
What to Do If Your Card Is Declined
Option 1: Pay with a Personal Card, Then Reimburse (Recommended)
This is the standard path for wellness purchases:
Pay with your regular credit or debit card
Save the receipt
Upload the receipt to your Crates dashboard
Submit for reimbursement — for supported admins, click "Start Reimbursement" in your Crates dashboard. For other admins, download your LMN and submit to your admin's portal yourself.
The money comes back to your HSA/FSA account (or your bank, depending on your admin).
Bonus: You earn credit card rewards on the purchase AND your HSA money stays invested longer.
Option 2: Try the Card Again
Sometimes a second attempt works, especially if the decline was due to a temporary system issue. But for wellness merchants, a second decline usually means the MCC is the problem - and the reimbursement path is your best bet.
Option 3: Contact Your HSA/FSA Admin
If you believe the card should have worked (for example, at a pharmacy or medical supply store), contact your admin. They can:
Confirm whether the merchant is in their approved network
Help troubleshoot the specific decline reason
Provide guidance on how to get the transaction approved
Other Reasons Your Card Might Decline
Beyond MCC mismatches, your card could decline for these reasons:
Insufficient funds - Your HSA/FSA account balance is too low (check your balance)
All funds invested - If your HSA money is fully invested in stocks/funds, there may not be enough cash for the debit transaction
Card expired or replaced — Some admins issue new cards without much notice
Card not activated - New HSA/FSA cards sometimes need to be activated before use
Transaction limit - Some accounts have daily spending limits
Don't Panic at Checkout
We know it's embarrassing when a card is declined in person. But this happens to lots of people - it's not a reflection on your account, your eligibility, or your finances. It's simply a technical limitation of how merchant codes work.
The reimbursement path exists precisely for this reason, and it's how most wellness HSA/FSA purchases are handled.
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