Crosby will continue to keep you apprised of the developments surrounding Inventory Information Approval Systems (IIAS) and the impact they will have on the Crosby Flex Debit Cards. As described in last month’s Crosby Connection newsletter, IIAS are systems designed to be used at merchant locations to track items as FSA or non-FSA eligible items, thus automatically substantiating purchases of FSA approved items at the point-of-sale. Cardholders using the Crosby Flex Debit Card at stores with IIAS will see an increase in the number of purchases that are approved automatically, thus reducing the need to submit evidence after the transaction has occurred and increasing their overall experience.

Following the release of IRS Notice 2006-69, a number of company representatives, including debit card vendors, retailers, trade association groups and third party administrators, came together to form the IIAS Standards Group. Initially, this group worked closely with the IRS to gain transition relief (received via IRS Notice 2007-2) for the requirements set forth in IRS Notice 2006-69. In addition, they began developing a voluntary industry standard to meet the IRS requirements for implementing and maintaining an IIAS by January 1, 2008. Though retailers will still have the option of implementing their own IIAS, such as Walgreens, the IIAS Standards Group is trying to develop a more macro oriented, industry accepted standard for all Flex Debit Cards.

Below is an updated list of merchants that have communicated and confirmed their intention to implement an IIAS to date.

A&P ACME - SuperValu Albertson’s – SuperValu Balls Food Stores Bigg’s – SuperValu Bloom Bottom Dollar Food Brookshires/Super 1 Foods Buehler Food Markets Carrs Cubs – SuperValu CVS/Pharmacy Dan’s Dick’s Dierbergs Markets Discount Drug Mart Dominick’s Farm Fresh – SuperValu Food Basics Food Lion Genuardi’s Giant Eagle Giant Food Giant Food Stores Hannaford Food and Drug Harris Teeter, Inc Harvey's H-E-B Hen House Markets Hornbachers – SuperValu Hy-Vee Drug Stores Hy-Vee Food Stores Jewel – SuperValu Kerr Drug Kroger Lin’s

Long's Drug Stores Lucky – SuperValu Macey's Medicine Chest Pharmacies Meijer OSCO – SuperValu Pak’ n Save Foods Pavilions Price Chopper Randalls Reid's Rite Aid Rosauers Roundy’s Supermarkets Safeway Sam’s Club Sav-A-Center Shaws – SuperValu Shop & Save - SuperValu ShopKo Express ShopKo Stores Shoppers – SuperValu Star Market – SuperValu Stop & Shop Pharmacy Sunflower- SuperValu Super 1 Pharmacies Sweetbay Supermarkets SuperFresh Target Corporation Tom Thumb Tops Markets Vons Wal-Mart Stores Waldbaum's Wegmans Wilkinson Pharmacy

Please note: other merchants are believed to be implementing the IIAS as well, but have not yet confirmed this and therefore are not included on this list.

If you have any questions about the forthcoming IIAS requirements, or to learn how the Flex Debit Card can benefit your employees, please contact Darla Rosenfeld.