Wal-Mart Stores Inc. has begun using a PayFlex Systems USA Inc. point of sale system that automatically identifies and verifies items eligible for flexible spending accounts.
A ruling by the Internal Revenue Service in April requires large discount retailers to ensure that FSA debit cards are used for appropriate expenditures. PayFlex, an Omaha company that administers employee benefit programs, said Tuesday that the IRS recently extended the compliance deadline by a year, to Dec. 31, 2007.
PayFlex, which processes over half a billion dollars of annual claims, said more than 15% of its FSA purchases occur at big-box retail stores.
