Why was my Forma pre-tax card declined?

When using your Pre-tax Forma Card, transactions may be declined for the following reasons:

1. Merchant Category Code (MCC)

   • MCCs are 4-digit codes that categorize merchants by business type. For example, merchants labeled as dentists or optometrists will be approved for LPFSA and FSA accounts, while those labeled as hospitals or laboratories will be approved for FSA and HSA accounts.
   • Occasionally, an MCC may not clearly indicate that a product or service is eligible for pre-tax benefits, causing the transaction to be declined.

2. The Purchase is Not Pre-Tax Eligible

   • Refer to this complete list of eligible expenses for more information.

3. Insufficient Funds or Merchant Restrictions

   • If your account doesn’t have enough funds to cover the purchase, or if the merchant doesn’t support partial authorization, the transaction will be declined. For more information, refer to the article Can I make a pre-tax purchase that costs more than my account balance?

4. Card Reported Lost or Stolen

   • If your card has been reported as lost or stolen, it will not be approved for transactions.

5. Unpaid Balance from an Ineligible Transaction

   • Any outstanding balances from ineligible transactions may cause declines.

6. Account Deactivation

   • Only accounts listed under "Benefits > Active Accounts" are linked to your Pre-tax Forma Card. Make sure your account is active.

7. Employment Termination

   • If your employment has been terminated, your card will no longer be valid.

8. No Pre-Tax Accounts Linked to the Card

   • Confirm that you are enrolled in pre-tax benefits with Forma. You can verify this by logging into your Forma account and reviewing your current benefits.

9. Merchant Does Not Use an Inventory Information Approval System (IIAS)

   • Some merchants, like supermarkets and web vendors, sell both eligible and ineligible items. The IRS requires these merchants to implement an IIAS to accept FSA cards for eligible purchases.
   • If IIAS is not in place or not available at the terminal you're using, try another register or pay out-of-pocket and submit a reimbursement claim.

10. Card Not Activated

    • Ensure your card is activated. Follow the steps in the Pre-tax Forma Card activation article to complete activation.

11. Expense Paid with a Pre-Tax Forma Card from the Previous Year

    • If an expense from the current plan year is paid using funds from the previous year, please submit a manual claim.