Employee benefits card evaluation – 5 things to look for

Employee benefits card evaluation

There are a lot of things you should take into consideration when evaluating a third-party administrator (TPA) to partner with. There are obvious things like service, technology, and expertise. But what about their employee benefits card?

We’re here to tell you that not all employee benefits cards are created equal. When comparing your options, here are some things you should look for.

Offering a card in the first place

Yes, it’s crazy; there are TPAs out there that don’t even offer an employee benefits card! You may find this when evaluating certain smaller, local TPAs.

So, how do employees use their funds?

In all likelihood, these employees would have to pay for the eligible service or item using their credit or debit card. Then, they submit a claim to the TPA along with their receipt and wait for reimbursement. Now, this is a great alternative if an employee forgot their employee benefits card, but it shouldn’t be the ONLY way to use funds!

Multi-account capability

Your employees only have so much room in their wallets. So, don’t make them carry separate cards for their pre-tax health accounts and commuter benefits!

A smart employee benefits card utilizes merchant, terminal, and card payment rules to create a simple, convenient payment experience. A single card should even be able to correctly pull funds from multiple different pre-tax health accounts (e.g., a Health Savings Account and Limited Purpose Flexible Spending Account).

High auto-approval rates

When employees swipe their employee benefits card to pay for an eligible item, they want it to work. No one wants to go through the embarrassment of having their card denied and having to switch to a different payment method. And not only that, but now they must submit a claim just to use their pre-tax funds!

Look for the auto-approval (or auto-adjudication) rates of a TPA’s employee benefits card. The higher the percentage, the less likely this will happen when making purchases from a qualified merchant.*

*Auto-approval ratings are based on merchants who have correctly identified eligible items in their systems. If these items are not coded properly, even the best benefits card will not be able to auto-approve the purchase. Employees should always keep receipts in case of an IRS audit.

Identity theft protection

Help your employees secure their pre-tax funds in case of a lost or stolen card. Pick a card solution with identity theft protection built in.

Digital wallet compatibility

According to the 2021 Global Payments Report by Worldpay from FIS, the use of mobile wallets exceeded cash for the first time for in-store payments on a global scale. While the United States is behind many European and Asian countries in its use, it’s expected to improve over the next few years as merchants update their payment terminals. Picking a solution that’s compatible with digital wallets puts your benefit offering ahead of the curve.

Get it all with the Beniversal® Prepaid Mastercard®

The Beniversal Card is your all-in-one card solution for tax-free benefit accounts. Features include:

  • A single card source linked to all your pre-tax benefit plans that can be used at qualified merchants who accept Debit Mastercard
  • Auto-adjudication rates up to 99%
  • FREE comprehensive ID Theft Services that include identity theft alerts, emergency wallet replacement, and access to certified resolution specialists
  • Digital wallet compatibility with Apple Pay®, Google Pay®, and Samsung Pay®