Inventory Control System Overview
The Inventory Control System allows you to use your FSA Debit Card at stores that are not typical health care providers (grocery stores, discount stores, warehouse clubs, etc.). The Inventory Control System restricts purchases with the cards to FSA-eligible expenses. If you make a purchase at one of these stores, you should never have to submit follow-up documentation.
Example: Tom goes to the counter at a store with an Inventory Control System in place with a six-pack of cola and a pack of bandages and swipes his FSA Debit Card (and selects the credit option). The card pays for Tom's bandages and then the cashier asks Tom to pay for his cola with a separate form of payment. Because the store with the Inventory Control System in place confirms that only expenses eligible for a tax break were paid for with Tom's FSA debit card, no follow up documentation has to be submitted to ASIFlex. Tom goes home and puts his receipt in an envelope designated for the current plan year so that if the IRS audits him, he has all necessary documentation readily available to him.
The Special Interest Group (SIGIS) for Inventory Information Approval System Standards maintains a list of retail outlets that have implemented the Inventory Control System. Remember, if you use your FSA debit card at any of these stores, you will not have to submit follow-up documentation for these purchases.
that both Walgreens and drugstore.com have implemented the inventory
system, but neither is on the list. The FSA debit card will
work at both of these places, and no follow up documentation will be
required from either store.
View the list