Most optimization roadmaps focus on creative, landing pages, and discounts. But one of the most powerful levers for health and wellness brands is whether customers can confidently use their HSA/FSA funds at checkout.
If your products are eligible—or could be with proper documentation—then clear HSA/FSA eligibility verification can directly improve conversion rate and AOV.
Why There’s So Much Money Waiting to Be Spent
A few data points:
- Devenir’s 2023 HSA Research Report shows $123B in HSA assets across 37M+ accounts. Devenir+1
- Their 2024 report shows assets growing to about $147B and nearly 39M accounts, a 19% asset increase. Devenir
- EBRI’s ongoing HSA database work finds that average HSA balances and contributions have generally risen over time, even as healthcare spending increases. EBRI+1
- Numerator’s HSA/FSA consumer spending study suggests that households are contributing thousands of dollars per year into these accounts and spending a significant portion on consumer products. Numerator
These are pre-tax dollars earmarked for health-related purchases—exactly the kind many wellness, fitness, and recovery brands sell.
Where Merchants Lose Conversions Today
Here’s what HSA/FSA friction looks like in real life:
- A shopper finds your product via a search like “HSA eligible [product].”
- They want to use their HSA or FSA, but your site doesn’t clearly say if it’s eligible.
- They either don’t try, or their HSA/FSA card gets declined because the rails aren’t configured.
- They bounce and look for a store explicitly supporting HSA/FSA.
In your analytics, this just looks like “normal” abandonment at checkout.
What Eligibility Verification Actually Involves
True verification is more than a yes/no badge:
- Tying SKUs to eligibility definitions from IRS Publication 502 and Publication 969 IRS+1
- Understanding when an item might be eligible with a Letter of Medical Necessity (LMN), as explained in resources like FSA Store’s LMN guide and HealthEquity’s LMN article FSA Store+1
- Generating itemized receipts that satisfy typical HSA/FSA administrator requirements
Doing all that manually is a non-starter for most eCommerce teams.
How Medpaid Handles Eligibility + Payments for You
Medpaid is an eligibility-first HSA/FSA SaaS built for Shopify, WooCommerce, BigCommerce, and custom checkouts. It provides:
-
Automated eligibility intelligence
- Product research mapped against IRS rules and administrator practices
- Handling for LMN-dependent products
- Ongoing updates so your catalog doesn’t go out of date
-
Checkout widget with HSA/FSA payment support
- “Pay with HSA/FSA” and “Reimburse via HSA/FSA” in one unified flow
- Improved routing for HSA/FSA cards instead of treating them like generic debit cards
- Itemized receipts that support reimbursement when card rails can’t be used directly
-
Fast implementation
- For platforms like Shopify and WooCommerce, merchants can typically go live in minutes—not weeks—with no manual CSV mapping.
Why Eligibility + Payment Options Improve Conversion and AOV
While there aren’t many public studies specifically on HSA/FSA payment methods, there is strong evidence that adding relevant payment options improves conversion:
- Stripe’s payment method experiment found that businesses increased conversion and revenue by surfacing at least one additional relevant payment method beyond cards. Stripe
- Shopify and BCG showed in this analysis that adding accelerated payment methods can improve lower-funnel conversion by as much as 50% compared to checkouts without them. Shopify
- Checkout research from Ecommpay and IMRG, summarized in trade coverage, highlights that offering familiar payment choices and avoiding redirects significantly boosts completed orders. FinTech Magazine+1
HSA/FSA is essentially a highly relevant, high-intent payment option for health-related purchases. With clarity on eligibility and a clean HSA/FSA flow, brands typically see:
- Higher conversion on eligible SKUs
- Higher AOV (customers buy the full solution, not the bare minimum)
- Lower support volume about failed or confusing payments
Turn Browsers into Buyers with HSA/FSA
If your brand sells products that support real health needs, you don’t just need traffic—you need ways for customers to use the money they’ve already put aside for those needs.
- Learn more at medpaid.com
- Or talk to the team directly:
Book a demo with Medpaid
See the checkout widget in action and get a preliminary eligibility assessment of your catalog:
👉 https://app.medpaid.com/widget/bookings/hadnot
