Employer Topics

Banking

Banking procedures have been established for the Flexible Spending Account Plans to describe the relationship and activity that occurs between the client and mbi (the debit card vendor).

Debit Card Transactions

1. The Client Company establishes a bank account for FSA debit card transactions and manual check reimbursements.
2. This account is funded by the Client Company as needed to cover transactions. Most companies have found that initial funding for one to two months of anticipated transactions creates a comfortable cushion in the account. Mbi will assess a $50.00 overdraft fee for any ACH request that is rejected due to insufficient funds. All overdraft fees are the responsibility of the Client Company.
3. As participants use their debit card, MasterCard pays the vendor at the point of sale.
4. At the end of each day, MasterCard batches the transactions of the participants for each Client company and requests funds from mbi (our debit card vendor) to cover the total transactions.
5. An email is sent to the Client Company at the end of each day to advise of the total transactions for the day.
6. The next morning, mbi will present a request for ACH of funds from the Client Company’s bank account.

Checks

1. Paper claims submitted by participants are processed by AdminUSA. Checks are printed and mailed on Fridays. Funds for these payments will be drafted from the same Client Company bank account.
2. Email notification of these drafts will be sent by AdminUSA at least one business day prior to the ACH transaction indicating the total amount of the paid claims for that batch.
3. Checks are mailed directly to the participant’s home address or reimbursements may be processed by direct deposit to the participant’s bank account.

Repayments from Participants
Should a participant be required to put funds back into their account, due to the purchase of an ineligible expense with the debit card, AdminUSA will process the repayme