The Derbin Amendment Affects Section 125 Debit Card Holders
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 contains what is known as the “Derbin Amendment” which requires Personal Identification Numbers (PIN) be linked to all debit cards linked to Section 125 pre-tax accounts. These accounts include the health savings account (HSA), flexible spending account (FSA), health reimbursement arrangement (HRA), Dependent Care Account and Transit Account.
Your employees will need to set up a Personal Identification Number (PIN)
This means that merchants who accept debit cards can choose to process these cards as “debit,” which requires a PIN to complete the transaction. As a result, each employee in your plan will need to obtain a PIN for the debit card. If an employee also has cards for a spouse and/or dependent, they will all use the same PIN as the employee.
Communicating with your employees
Debit Card Activation