WEX Taps AI for Faster FSA Reimbursements

WEX has debuted a tool designed to help people get faster reimbursements from their flexible spending accounts (FSAs).

The artificial intelligence (AI)-powered tool, announced Monday (July 21), is designed to reduce busywork by automating steps like checking receipts, pre-filling claim forms and approving eligible claims for reimbursement.

“Today’s health and benefits teams are doing more with less,” Jennifer Whitmire, senior vice president of product for health and benefits at WEX, said in a news release. “By building smarter tools that automate the most frustrating parts of the process, we’re helping our partners offer a faster, more modern experience without adding extra burden to their teams.”

According to the release, the tool includes document verification that informs consumers in real time when information is missing, as well as smart form completion that pre-fills key fields to cut down on manual errors.

“This new claims tool tackles the most common reasons for denials, like missing documentation or ineligible expenses and gives users a more predictable, seamless experience from start to finish,” the release added.

Research by PYMNTS Intelligence shows the value consumers place on faster reimbursements and refunds.

For example, the studies have found that 43% of consumers who receive reimbursements for business expenses opted for instant payments.

More recently, the PYMNTS Intelligence/Ingo Payments collaboration “Instant Shift: How Choice, Certainty and Convenience Are Driving Demand for Instant Payments” found that 63% of U.S. consumers now expect same-day refunds.

The research found that instant payments have lost their novelty. In 2017, just 4.1% of nongovernmental disbursements were made instantly, compared to 38% today.

“Perhaps the most surprising finding? Nearly 40% of consumers say they’d rather go to the dentist than wait more than a week to get their money back,” PYMNTS wrote. “That’s how far consumer expectations have shifted toward convenience. Now, it’s up to the payments infrastructure to adapt and keep up.”

At one time considered a back-office operation or a minor cost of doing business, the process of providing refunds has become a crucial part of the customer experience. And for many companies, the report added, it’s a battle they could find themselves losing.

The trend toward instant refunds is being driven by both choice and availability, with 38% of consumers saying they get payments instantly, and with two-thirds of that group choosing that method from multiple options.

“In categories like borrowing disbursements — think short-term loans or credit advances — that preference jumps even higher, with 33% of recipients selecting instant over slower alternatives, a 38% increase from last year,” PYMNTS wrote.