Bridging the digital divide in healthcare payments: Best practices for HSA/FSA acceptance
Learn how healthcare businesses can enable seamless, compliant HSA and FSA payments to meet consumer demand and drive digital revenue.
The digital health economy is rapidly expanding. By 2029, revenue from the U.S. digital health market is projected to reach $70 billion, up from $54 billion in 2025. Meanwhile, 37 million Americans now have an HSA or FSA, and many are using these accounts to cover the costs of virtual care, wellness subscriptions, and everyday health products.
To meet increasing consumer expectations, healthcare companies must provide seamless, compliant HSA and FSA payment experiences. Download our latest whitepaper, The rise of digital healthcare: Driving revenue with HSA and FSA payments, to see how Paysafe helps businesses bridge the digital divide and generate new revenue.
Why digital HSA and FSA payments matter
As healthcare services shift online, consumers expect the same convenience they experience in everyday e-commerce. From virtual therapy sessions to wellness subscriptions, patients are increasingly using HSA and FSA funds to pay for digital-first care. Yet many healthcare providers still lack the infrastructure to support these transactions remotely.
Without card-not-present payment features designed for HSA and FSA rules, businesses risk declined transactions, abandoned carts, and lost revenue. For ISVs and healthcare merchants, offering compliant online payments is no longer optional but vital for meeting consumer needs and staying competitive.
How payment partners help bridge the gap
Enabling HSA and FSA payments online isn't just a matter of flipping a switch. It involves navigating IRS eligibility rules and aligning with merchant category codes (MCC), requiring careful setup and technical know-how. Many healthcare businesses and ISVs find it challenging to implement these features on their own.
This is where having the right payment partner becomes crucial. Paysafe’s infrastructure is built for digital-first healthcare, supporting remote transactions, MCC configuration, and TSYS-backed processing. With the right tools, businesses can navigate complexity and provide the seamless experience consumers expect.
Best practices for enabling HSA and FSA payments
To meet consumer expectations and stay compliant, healthcare businesses and ISVs should follow these foundational best practices:
- Align MCCs with IRS eligibility rules
Ensure your business is classified under an IRS-approved merchant category code (MCC). This is crucial for HSA and FSA cards to work properly and prevent declined transactions.
- Verify MCCs with your payment processor
Work with your acquiring bank or payment provider to verify if your MCC qualifies. This step helps minimize checkout delays and ensures transactions are routed correctly.
- Clearly communicate HSA/FSA acceptance
Let customers know upfront that you accept HSA and FSA cards. Show messaging throughout the checkout process to build trust and boost conversions.
- Enable seamless card-not-present payments
Enable remote transactions for virtual care, subscriptions, and online orders. Consumers expect the same ease of use they experience in other digital shopping platforms.
- Track transactions in real time
Use reporting tools to track HSA and FSA payment activity. This assists with reconciliation, compliance, and strategic planning.
- Choose a payment partner with healthcare expertise
Select a provider that understands the nuances of HSA and FSA acceptance and offers tools built for digital-first healthcare.
Looking ahead
As digital healthcare grows, enabling seamless HSA and FSA payments becomes more than just a benefit; it becomes a strategic necessity. Companies that follow best practices and partner with a payments provider like Paysafe, tailored for digital-first healthcare, will be best positioned to meet consumer expectations and sustain long-term growth.
For a closer look at the trends and tools driving this shift, download our whitepaper: The rise of digital healthcare spend: How to leverage HSA and FSA payments to drive revenue.
