Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) are specialized types of accounts in the United States that are designed to enable individuals to set aside pre-tax dollars for eligible healthcare expenses.

FSAs, typically offered as a part of employee benefits packages, provide employees the option to contribute a portion of their earnings to pay for qualified expenses.

HSAs are available to those enrolled in a high-deductible health plan (HDHP). They offer similar benefits but differ in terms of ownership, rollover rules, and eligibility requirements.

In the context of payment processing, many healthcare-related businesses — ranging from hospitals and clinics to pharmacies and online health retailers — accept FSA and HSA cards for eligible expenses. These businesses often need to have systems in place that can recognize these cards and distinguish between eligible and ineligible expenses.