IIAS Attracts Repeat Customers to Local Pharmacies

  As Healthcare debit card acceptance regulations change, don't let your yourself lose your customers to larger pharmacies that are equipped with an Inventory Information Approval System (IIAS).  Let us help you increase retention efforts by upgrading your payment acceptance system to include IIAS or SIGIS without data retention.  If you are only providing health services, please go to health services page instead

Did you know?
Did you know over 15 million FSA/HRA cards were issued in 2010? Your customer base keeps growing.  If you are not selling any products, you do not need a IIAS, go to HSA instead.

IIAS Merchants Increases Customer Loyalty and Convenience for Merchants
The Inventory Information Approval System (IIAS) allows terminals to identify eligible healthcare FSA/HRA purchases by comparing the inventory control information (i.1. UPC and SKU number) against a pre-established list of medical expenses at the time of purchase.  Merchants that install an IIAS will be able to accurately identify qualifying items being purchased with FSA/HRA debit cards, thereby increasing convenience and loyalty among customers.  Subscribe to IIAS web-based POS $49 a month per store, where SIGIS Eligible Product List are updated every night.

90%-Rule-Implementation Merchants
SIGIS is pleased to announce support for drug stores and pharmacies that have met IRS requirements that on a store location by store location basis, 90% of the store's gross receipts during the prior taxable year consisted of items which qualify as medical expenses (including over-the-counter eligible healthcare items). SIGIS is supporting 90% Rule registration for drug stores and pharmacies that are SIGIS members. To register as a 90% Rule merchant, merchants must first be a SIGIS member in good standing and have paid membership fees. The merchant completes registration at the SIGIS website [Join SIGIS]. SIGIS will communicate the Store ID/Card Acceptor ID to Issuer Processors. 90% Rule merchants continue to accept payment cards in accordance with their current processes. There are no data retention requirements for 90% Rule Program merchants.  All of our free terminals are enabled to accept FSA/HRA debit cards, but you have to manually identify eligible FSA/HRA products.  Terminals are $0 per free placement.

Eligible Products List

Some drug stores and pharmacies have the option of supporting an IIAS or registering as a 90% Rule merchant. Additionally, plan administrators may elect to support IIAS and/or 90% Rule programs. The chart below highlights some of the key characteristics and requirements of each program.

  IIAS Merchant 90% Rule Merchant
Program description IIAS transactions enable real-time verification that funds approved for debiting a FSA/HRA card account are for eligible medical items, as required by the IRS.

Issuer/issuer processors utilize the IIAS data fields in authorization request transactions to approve and auto-substantiate eligible health care amounts.

After successful program registration, 90% Rule merchants accept FSA/HRA payment cards just like any other payment card; there are no additional technical requirements for merchants.

Issuers/issuer processors support a list of 90% Rule merchant locations during authorization processing.

Qualification requirements Any merchant that sells prescriptions/Rx or eligible health care items. Limited to drug stores/pharmacies that have stores whose sales are primarily eligible medical items (90% or more of sales for each store registered must be from prescriptions or eligible health medical items).
Technical requirements for merchants Merchants are required to make technical changes to support the following:
  • Use the SIGIS Eligible Product List to flag eligible health care items in merchant’s inventory.
  • Change payment card processing to add eligible health care amounts to transactions.
  • Support a list of FSA/HRA BINs to identify card numbers to add IIAS data fields.
  • Store transaction detail for approved FSA/HRA card transactions in the event of an IRS audit.
Drug stores/pharmacies are not required to make any technical changes.
Identification of prescription amounts Yes, IIAS merchants have the option to include the Prescription/Rx Amount in addition to the Total Health Care Amount; this enables plan administrators to approve more FSA/HRA transactions. Not applicable.
Merchant categories Includes the following:
5411 – Grocery/Supermarket
5310 – Discount Stores
5300 – Warehouse Clubs
5499 – Convenience Stores
5912 – Drug Stores/Pharmacies
5122 – Druggist/Drug Proprietaries
5960, 5964, 5965, 5969 – Online
Various MCC – Other Non-Health
  Care Merchants
Only the following:
5912 – Drug Stores/Pharmacies
5122 – Druggist/Drug Proprietaries
Cardholder required to submit a transaction receipt to plan administrator Because transactions are auto-substantiated, cardholders are most likely not required to submit transaction sales receipts; although it is recommended that cardholders keep copies of transaction receipts. Cardholders are most likely required to submit transaction sales receipts; cardholders are recommended to keep copies of transaction receipts.
Name of merchant list IIAS Merchant List 90% Rule Merchant List
Transaction data retention IIAS merchants are required to store the transaction detail for approved IIAS transactions in the event of an IRS audit for 5 years. Not required.
Annual processes IIAS merchants are not required to re-certify unless the merchant makes changes to software that affects IIAS-certified components. The IRS requires annual registration and re-attestation that the sales of each registered store location are 90% or more from prescriptions or eligible medical items.

Getting Started?
Our Healthcare Merchant Services specialize in deploying and providing the lowest cost merchant services to pharmacies, medical doctors, dental, chiropractor, optometry offices. Starting a practice is a huge challenge, so we are keeping it simple, low cost and quick for you.

  1. Before You Begin Your Application:
    Please make sure you have the following information available..
    [ ] Business contact information (address, business phone number)
    [ ] Owner/principal Names
    [ ] SIGIS membership and approval. If you a pharmacist that is SIGIS Certified, please forward us the email of your SIGIS Certification to setup the Store ID/Card Acceptor ID.
    [ ] US Business Federal Tax ID# (or SSN for Sole Proprietorship)
    [ ] A check that tells you your routing & account number (for your sales deposit)
    [ ] Provide an EMAIL address and you will receive a copy of your application. Check your email for status updates.
  2. Select  
  3. Select Free Terminal
  4. Special Request check [Enable FSA/HRA Cards IIAS Merchant or 90% Rule Merchant]
UBS Merchant Account Copyright (c) 2003 2017-11-09. UBS an agent of Harbortouch Payments, LLC is a registered ISO/MSP of First National Bank of Omaha