Can a FSA debit card transaction be declined when the provider swipes the card?

Yes. There are some situations in which a debit card transaction can be denied by a pharmacy or other location. This can happen if:

  • You may be at an ineligible location
  • You may be asking for more money than what you have elected and/or contributed
  • Your card might have been temporarily suspended because your account is not in good standing OR because there is additional information required for previous transaction(s)
  • The card might not have been correctly re-activated since being suspended for additional information subsequently received
  • The valid location you are at has been identified in the system as an invalid location
  • The card’s magnetic strip has been compromised
  • The merchant’s “credit swipe machine” may be malfunctioning
  • You have swiped the card yourself and indicated “debit” (which refers to a bank account card) rather than indicating “charge”