On a previous message I read about companies that are selling debit cards for use by FSA participants.

Do you have any additional information on this or know of the names of any companies that are doing this?

Also, how does this effect/change the role of the TPA?

Since the regulations require a written request for reimbursement, independent third-party verification of the expense and it is the date the expense is incurred, not when formally billed, charged or paid that deterimines the date of service, it is difficult to see how such a system would work and still be in compliance with the IRC and the governing regulations.

My husband and I have a medibank Flex Convenience card that allows us to pay for our normal FSA expenses with the card. It is a MasterCard that works everywhere MasterCard is accepted. I understand the IRS said this product is ok at the fall ECFC conference which is great because I love it!

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The way I have been told that they work is
1. The request for payment is the same as a request for reimbursement.
2, The request for payment comes via the service provider (merchant) thereby giving third party verification.