Merchants

How HSA/FSA Payments Help Wellness Brands Boost Revenue

How HSA/FSA Payments Help Wellness Brands Boost Revenue

Most wellness brands are leaving money on the table.

Americans contribute billions to Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) every year — pre-tax money they’re required to spend on health-related expenses. But unless your store is set up to accept those dollars, they’ll spend them somewhere else.

Here’s how proper HSA/FSA processing helps merchants capture that spend, convert more customers, and stay compliant.

1. Unlock Pre-Tax Buying Power

HSA/FSA funds are tax-free. That means your customer’s $100 feels like $135 in post-tax spending.

If your products qualify — supplements, wellness gear, diagnostics, etc. — and you don’t enable HSA/FSA processing, you're making customers pay more than they should. And many will walk away.

2. Increase Conversion at Checkout

Most shoppers don’t know what qualifies — and the moment they’re unsure, they abandon the cart.

With proper processing, you can:

  • Tag eligible SKUs on-site
  • Offer seamless checkout
  • Give customers confidence to buy

It turns confusion into conversion.

3. Access Billions in “Use-It-Or-Lose-It” Dollars

FSA dollars expire at the end of each year. That’s a surge of buying urgency — if your brand accepts them.

HSA funds don’t expire but are often underused due to complexity. When you simplify the process, you become the obvious place to spend.

4. Stay Compliant (Without Taking on Liability)

Many platforms rely on generic, auto-generated Letters of Medical Necessity (LMNs) that don’t meet IRS standards. That puts the merchant at risk — not the processor.

Wellness Pay fixes that with:

  • Real doctor consults
  • Custom LMNs
  • Built-in tagging and tracking

You get the benefits, not the audit exposure.

5. Protect Your Brand & Customer Trust

Open-loop systems expose customer data to third-party vendors and marketers. That’s a privacy nightmare — and a reputation risk.

Wellness Pay runs on a closed-loop system:

  • No third-party storage
  • No reselling data
  • Full control over approvals and customer experience

The Bottom Line

HSA/FSA processing isn’t a nice-to-have. It’s a way to:

  • Capture tax-free dollars
  • Increase conversion
  • Reduce support tickets
  • Stay compliant
  • Build long-term trust

Most brands qualify. Few are set up right.

We make it simple to do it right — and grow faster because of it.