Have you ever seen the key ring carried by a building’s superintendent? It’s bulky, weighed down by the keys to what seems like hundreds of locks. If you’re offering your employees multiple benefits that have debit card access, such as a Health Savings Account, carrying individual cards for each benefit could feel like the super’s key ring. And if they don’t carry all of the cards all of the time, they might not have the specific card they need when they go to pay for an eligible expense. Or worse—they might lose one or more cards.

By offering employees a stacked benefits card that covers all of their benefits, Lifestyle Spending Accounts (LSAs) included, employers help ensure employees have access to their accounts when they need it. Stacked cards make it easier for employees to use their accounts and easier (and cheaper) for employers to administer those accounts, creating a win-win situation for everyone.

In this post we’ll cover how Lively’s stacked cards work and how they’re modernizing the benefit experience.

What is a Stacked Card?

A stacked benefits card is a single debit card that is connected to all of the account holder’s benefit savings and spending accounts. When an account holder goes to pay for an eligible expense, the card automatically debits the money from the appropriate account without the need for substantiation or other input from the account holder. Only benefit accounts that are offered by a single provider are able to be stacked on a single card.

How Stacked Cards Know Where to Pull Funds

One of the smartest features of a stacked benefits card is its ability to automatically apply the correct benefit account at checkout—without the employee needing to decide.

This process happens behind the scenes through a quick exchange between two parties:

• The issuing processor, which manages the card and benefit accounts.

• The acquiring processor, which handles the transaction at the point of sale.

When a purchase is made, the system checks:

• Is there enough money in the account(s)?

• Is the purchase eligible under any benefit account?

• If more than one account qualifies, which one should be used first?

This final step—often referred to as the "order of funds"—follows IRS rules or employer plan design. For instance, if an expense qualifies under both a Flexible Spending Account and an HSA, the system might pull from the FSA first.

What Enables This to Work

Two systems help determine eligibility and automate approval:

Inventory Information Approval System (IIAS) Some merchants maintain item-level eligibility lists tied to benefits accounts. For example, if a drugstore marks sunscreen as FSA-eligible in its inventory system, the purchase can be automatically approved when using a stacked card.

Merchant Category Codes (MCCs) Other merchants—like gyms or medical providers—fall into pre-approved categories. These are recognized by their MCC, which signals that most purchases there are likely to be eligible. This allows the transaction to be approved without checking individual items.

Together, these tools help auto-substantiate many transactions. For employees, this means fewer hurdles and less documentation. For employers, it means a smoother process and fewer questions to field.

How Stacked Cards Benefit Employees and Employers

A stacked benefits card introduces simplicity into the employee experience and the administration of benefits programs. By consolidating multiple accounts into a single access point, these cards can improve both usability and efficiency.

Why Employees Appreciate Stacked Cards

Paying with a card is the default for many consumers—card payments made up 60% of all consumer transactions in 2022, according to Federal Reserve data. At the same time, the number of physical cards people carry has been steadily declining. A stacked card aligns with both trends: fewer cards, greater utility.

Having one card to access multiple benefit accounts increases the likelihood that an employee has access to the right funds at the right time. This can help reduce delays, simplify payment at the point of sale, and limit the need for post-purchase reimbursement.

In situations where a purchase qualifies under more than one type of benefit account, stacked cards can automatically apply the correct rules and ordering—whether determined by IRS guidelines or employer policy—without requiring employees to manage those decisions themselves.

This means:

• Employees don’t have to know which account is eligible for which expense.

• They don’t need to keep track of balances across multiple accounts at checkout.

• Payment is processed based on pre-set logic, reducing friction during transactions.

Stacked cards also provide a single interface for tracking balances and transaction history. With all benefits displayed together, it’s easier for employees to plan, monitor, and use their available funds in a way that supports their health and financial goals.

Why Employers Should Look for a Provider that Offers Stacked Cards

First and foremost, stacked cards can increase employee utilization of benefits. Benefits are, on average, about 30% of an employee’s total compensation. If employees aren’t fully utilizing their benefits, they’re experiencing their compensation as being lower than it actually is. Which can lead to higher turnover rates since seeking higher compensation is the most common reason employees leave a company.

In addition, it’s often cheaper to issue one stacked card than it is to issue multiple benefits cards. Some benefits providers don’t charge for the initial issuance of benefits debit cards, but they will charge for a replacement card if the employee loses it. Having a singular card that employees need to keep track of reduces the chance they lose it.

Stacked cards also reduce the complexity of benefit administration. Benefits plan guardrails are implemented automatically, set-up is typically more streamlined, and they are simpler for employees to use, which reduces the amount of internal communication benefits administrators must field.

The Bottom Line on Stacked Cards

Stacked benefits cards offer a simple solution to an increasingly complex benefits landscape. By consolidating access to multiple accounts into a single card, they make it easier for employees to use the benefits they already have. This can lead to higher engagement, fewer administrative headaches, and a more streamlined experience overall.

Understanding what’s eligible and how to apply the right benefit at the point of sale shouldn’t be a burden. Stacked cards help reduce that complexity—supporting better outcomes for employees and employers alike. Already offering benefits through Lively or considering a switch? Contact our team to learn how stacked cards can fit into your plan.