Separate MIDs for HSA Authorized RosyPay

RosyPay Merchants offering HSA-qualified services that wish to accept Health Savings Account (HSA) payment methods (pre-tax dollars set aside for medically qualified goods/services) should request this feature from our RosyPay team. The request should include a description of why the merchant wishes to have this capability and what HSA-qualified services they currently offer. Additional supporting documentation, such as a service menu, might be requested. 


How it Works

Once the HSA request has been reviewed and accepted by Fullsteam (our parent company), a custom application link will be sent to the merchant so they can apply for a separate account exclusively for HSA-qualified transactions.

After submission, the application will go through underwriting, the same process as non-HSA merchant applications. The underwriters might request additional merchant information at this time. 

Once all underwriting requirements have been fulfilled and the application is approved and boarded, the merchant will be contacted to activate the new merchant account on their software to begin accepting HSA payment methods. 

Please speak with your RosyPay or Rosy Support representative about adding this new merchant account to your software and using it to accept HSA payments: save@rosypay.com or 877.346.7679 x4.


FAQs

Why must I follow this process to start accepting HSA payments?
Separate merchant identifiers (MID) established under the proper merchant category code (MCC) must be authorized and used to accept HSA payments. Visa and Mastercard have started heavily policing an MCC that does not match the business (just so HSA cards will approve), issuing fines to acquirers. Since these are termed willful violations, the fines start at $25k per MID per month.


Will this change in the future to allow merchants to use only one merchant account for all payment types?
For the time being, it appears this will remain the same. We have presented credible evidence to both Visa and Mastercard as to why the MCC needs to be set this way, and they have declined all requests. The only way this can be approved is if the POS system can support two MIDs: one for the standard MCC for regular sales and one set to the special MCC for HSA transactions. Then, when Visa audits the MID, there’s proof that the only transactions on this MCC were valid HSA transactions. Visa has deemed this particular setup acceptable. We have also pushed back on Visa and Mastercard and asked them to speak with issuing banks declining the cards.