Can I Use My FSA Card to Buy Glasses Online?

A Flexible Spending Account (FSA) offers a tax-advantaged way to pay for eligible healthcare expenses not covered by insurance. This employer-sponsored benefit allows individuals to set aside pre-tax money from their paycheck into a dedicated account. These funds can then be used throughout the plan year for qualified medical, dental, and vision care costs, reducing overall taxable income.

Understanding FSA Eligibility for Vision Care

Eligible vision care expenses are defined by IRS rules as items that correct vision or treat a specific medical condition. This includes prescription eyeglasses, prescription sunglasses, and contact lenses, along with their associated solutions, are also eligible expenses.

While most prescription eyewear is covered, non-prescription fashion glasses or sunglasses are not. Reading glasses, without a specific prescription, are eligible as they address presbyopia. Eye examinations from optometrists or ophthalmologists also qualify as medical expenses.

Making Online Purchases with Your FSA Card

Using your FSA card for online purchases of eligible vision care items is like a standard debit or credit card. Many online retailers specializing in eyewear and healthcare products are equipped to accept FSA cards directly. When shopping, look for clear indications such as “FSA/HSA accepted” logos or dedicated FSA-eligible product sections on the retailer’s website.

During the online checkout process, you enter your FSA card details like any other payment card. The system at approved merchants, especially those using an Inventory Information Approval System (IIAS), automatically identifies eligible healthcare items. This technology ensures compliance with IRS guidelines, often processing the transaction automatically. If the retailer’s system cannot verify eligibility in real-time, the transaction might be declined, requiring an alternative payment method. Always confirm that all items in your cart are FSA-eligible before completing the purchase, as including non-eligible items can cause the transaction to be rejected.

Documentation and Reimbursement Considerations

Even when using an FSA card directly, retaining detailed receipts for all purchases is a prudent practice. Your FSA administrator may periodically request documentation to substantiate transactions, especially if there are questions about eligibility. An itemized receipt should clearly show the merchant’s name, the date of purchase, a specific description of the item (e.g., “prescription eyeglasses”), and the dollar amount paid.

If your FSA card is declined during an online purchase, reasons include insufficient funds, an inactive card, or the merchant not being set up for real-time FSA verification. In such cases, you can pay for the eligible items using a personal credit or debit card. Following this, you would submit a reimbursement claim to your FSA administrator, attaching the detailed itemized receipt. The reimbursement process involves completing a claim form provided by your administrator and submitting it with the required documentation, with processing times ranging from one to two business days.