Where can I use the health care card, that is, what merchants are “approved”?
The term “merchant” is used to describe a provider or retail store that accepts payment through the card network, which authorizes all health care card payments. Each merchant who accepts card payments is assigned to a merchant category based on their line of business. The Internal Revenue Service controls where the health care card can be used by approving merchant categories that represent merchants who are very likely to sell or provide eligible health care products and services. Card payments at all other merchant categories are prohibited and automatically declined through the card network. When the health care card is used at any merchant who is assigned to an approved merchant category, the card payment is instantly authorized by the card network in the transaction amount (up to the account balance). Note that the card transaction is not approved as an eligible health care expense; that comes later. IRS Restrictions on Health Care Card Use IRS guidelines require certain types of
