TPS Merchant Certification

Merchants that use a SIGIS certified Third-Party Servicer (TPS)/POS Vendor for their inventory and point-of-sale register systems may qualify for a simplified IIAS certification. To qualify, the TPS/POS Vendor must provide and operate all of the following services/systems on behalf of its merchant clients:

  • Inventory management
  • Cash register/POS transaction processing
  • Payment card processing

A TPS may be a merchant, a POS software vendor or a company that provides third-party services to merchants that sell prescription/Rx and over-the-counter qualified health care products.

If TPS software allows the merchant to make changes that will affect IIAS processing after the software is installed, its merchant clients who use that software will not be able to use streamlined certification. In those cases, the merchant may certify using the standard SIGIS merchant certification process.

Once the TPS is IIAS certified with SIGIS, merchants using a certified TPS solution version and acquirer, and are a SIGIS Member, can certify with SIGIS by completing a simplified, online IIAS certification form. The TPS Merchant Certification form is located in the Members Area. A merchant’s TPS can tell it whether its software version and acquirer are certified. Individual client merchants are not required to complete separate technical testing with their acquirer because the TPS has successfully completed this testing as part of its certification.

To check if your TPS is certified, view SIGIS Members POS Solution Providers or contact the SIGIS Help Desk at 925-855-3228 or if your TPS is not on the list of POS Solution Providers.

For more information about being an IIAS merchant, click here for FAQ for Merchants.

Types of Merchants that Support an IIAS

The IRS requires merchants that sell qualified medical goods and services, but do not have a health care Merchant Category Code (MCC) or do not qualify under the IRS 90% Rule exemption, to have an IIAS for purchases with FSA/HRA cards to be approved. The following list of MCC's, which is not intended to be all inclusive, is an example of the Merchant Category Codes that are required to implement an IIAS.

NOTE: SIGIS services do not support dependent care FSA accounts or health care providers such as doctor's offices, hospitals, chiropractors, massage therapists, dentists, medical labs or vision centers.

Merchant Category Merchant Category Code
Grocery/Supermarket 5411
Discount Stores 5310
Warehouse Clubs 5300
Convenience Stores 5499
Online Pharmacies 5960, 5964, 5965, 5969
Drug Stores/Pharmacies* 5912
Druggist/Druggist Proprietaries* 5122
Other Non-Healthcare Merchants Various MCCs
*May be eligible for 90% Rule registration if stores qualify under IRS requirements.