This article will help you understand the data in Pre-Tax Card Transaction Reports, enabling you to analyze key insights and maximize the value of the information.
What is the difference between "Card Adjudication Status" and "Transaction Status" on this report?
Card transaction status refers to the initial status of a purchase when it is processed at the point of sale (POS) and funds are transferred to the merchant.
Adjudication status determines whether a receipt is required for validation. The IRS mandates that all pre-tax transactions be verified with receipts. However, if a merchant is IIAS-certified and the purchase includes IIAS-eligible items, or if the transaction matches a defined co-pay amount or qualifies as a recurring expense, the adjudication status will be marked as 'receipt not required.' In all other cases, the adjudication status will be 'receipt required,' meaning the member must submit a receipt to verify the purchase.
How do I calculate card approval rates from this report?
- Filter by Transaction Status, including approved and denied statuses only
- Calculate the sum of the approved plus the denied transactions (ex: 100)
- Calculate the sum of the approved transactions (ex: 85)
- Divide the number of approved transactions by the number of approved and denied transactions (ex: 85/100 = 0.85)
How do I calculate the auto-substantiation rate from this report?
- Filter by Transaction Status, including approved status only
- Calculate the sum of the approved transactions (ex: 85)
- Calculate the sum of records where Adjudication Status = Receipt Not Required (ex: 65)
- Divide the number of receipt not required transactions by the number of approved transactions (ex: 65/85 = 0.76)
How do I use Eligible Amount and Ineligible Amount from this report?
Amount Eligible and Amount Ineligible determines the eligibility of a transaction after adjudication.
Depending on adjudication status:
- If receipt_not_required:
- Amount Ineligible = $0
- Amount Eligible = Amount Charged
- If approved:
- Amount Ineligible = $0
- Amount Eligible = Amount Charged
- If rejected:
- Amount Ineligible > $0
- Amount Eligible = Amount Charged - Amount Ineligible
- If awaiting_receipt and under_review:
- Amount Ineligible = $0
- Amount Eligible = Amount Charged
- NOTE: We are assuming it’s entirely eligible, but has yet to be approved
Filtering by Transaction Status
- If you would like to check card spend, filter by approved and processing transactions. Although the processing transactions have not been settled, they are more likely than not to be approved.
- If you would like to track card performance, filter by declined transactions
- Cancelled transactions should be reviewed with caution, as they are not correlated with utilization rate or card performance
How will declined transactions display on the report?
- Account Type will be blank, as there is no account being charged. But if you see an Account Type listed, it means the card transaction was in a processing stage and was attempting to charge from an eligible account, but later declined.
- Amount Eligible and Amount Ineligible will be $0. The Amount Charged will be $0 as well.
- Card Adjudication Status should be Blank as a declined transaction will not go through the adjudication status decision, but if you see them being populated, please ignore them.
How will cancelled transactions display on the report?
- Account Type will be the account originally charged
- Amount Ineligible will be $0
- Amount Eligible will equal Amount Charged because there was an attempted charge
- Card Adjudication Status should be receipt_not_required. If the field is blank, please ignore.