Accepting HSA and FSA cards.

[counsel]

Does anyone know how I can accept HSA and FSA credit cards for payment on PayPal?  They are denied when I swipe them.  I am a psychotherapist in private practice and many of my clients would like to use these cards for payment.  I understand that Square will verify my license and open my account to such payments, but I would like to stay with PayPal. 

PLEASE.....Someone from PayPal, can you please respond.

Thanks you sooooo much

Kathy <removed>

[erinsaxer]

Has anyone stumbled across a resolution yet? Thanks!

[jhicks82]

Go to your business setting and make sure your business account category is under medical and health professionals. I fixed that on my account and I was able to accept a HSA card. 

[HSAfordocs]

I did this.

And I STILL cannot accept HSA cards.

[SironaTherapy]

I just messaged with PayPal support. They clearly stated that they don't process HSA/FSA payments because of the regulations involved. This is nonsense. PayPal is a big kahuna in the payment processing world. If Square can do it, PayPal should be able to do it. How about we get all the 30+ people having this issue to petition PayPal? Let me know.

[boormancounseli]

I've been told both multiple times. I changed our services part, for a few weeks it worked, now it automatically keeps changing our services back to "counseling" instead of "medical devices and health practitioners", it won't hold the change, and now were being denied. I have had MULTIPLE tickets and called and chatted SEVERAL times, it's been over 2 weeks and I am so sick of Paypal and their lack of customer service and being told something different EVERY time I talk to someone else. 

By the way, "counseling services" should already HAVE the correct merchant code needed to run HSA and FSA. It shouldn't need to be changed to "medical devices and health practitioners" because counseling services are healthcare. PAYPAL needs to change that anyways. 

[SironaTherapy]

How did you change the category? I went through all my account settings and couldn't find where I can do that.

[jhicks82 · Accepted solution]

Go to account settings, then business information, then hit update in upper right corner, then hit edit in upper right corner, you should see edit company profile, then select medical and health services under the heading what kind of products or services do you sell. Make sure you save any changes you make.

[SironaTherapy]

Woohoo! That worked! Message Center agent told me it wasn't possible. Thanks everyone. I'm glad I came here and asked you good fellow users. This made my client very happy. I will keep an eye on if PayPal keeps setting my category back to what it was.

[HSAfordocs]

This does not work.

It reverts back to the incorrect business type.