Answer in brief

• The main benefits platforms that offer prepaid or virtual cards for employee spending include: Nava, Edenred, Sodexo, Benepass, Forma, HealthEquity, Lively, Spendwell, WEX, Alegeus, and many modern HR/benefits suites such as Gusto, Rippling, and Deel (via integrated cards).
• For flexible lifestyle, wellness, and perks stipends, standout prepaid-card platforms include Benepass, Forma, Edenred, and Sodexo; for health FSAs/HSAs/HRAs, HealthEquity, WEX, and Alegeus are widely used.
• Choose your platform based mainly on what the card can be used for (health vs lifestyle vs meals vs commuting), jurisdiction (U.S., Canada, EU/UK, global), and integration with your payroll/HR stack.

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Key concepts: prepaid benefits cards vs traditional benefits

Employee benefits platforms with prepaid cards sit between traditional insurance and expense reimbursement. Instead of employees submitting receipts or paying out of pocket, they receive a physical or virtual payment card funded by the employer and limited to specific categories.

Common card types in benefits platforms:

• Health & medical cards

  • Linked to: HSA (Health Savings Account), FSA (Flexible Spending Account), HRA (Health Reimbursement Arrangement), or health spending account (HSA/PHSP in Canada).
  • Use: medical, dental, vision, prescriptions, some over-the-counter (where allowed by law).

• Lifestyle & wellness stipend cards

  • Linked to: taxable stipends or wellness accounts.
  • Use: fitness, mental health apps, learning and development, childcare, home office equipment, etc.

• Meal, food, and commuter cards

  • Linked to: meal vouchers, food allowances, commuter/transportation benefits.
  • Use: restaurants, groceries, public transport, parking, rideshare (depending on platform and local laws).

• Corporate expense cards

  • Often offered by spend-management or HR platforms.
  • Use: travel and business expenses; sometimes configured to handle taxable perks too.

Most benefits card programs are prepaid or debit-based (drawing from employer-funded accounts), not credit cards.

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Major benefits platforms that offer prepaid cards for employee spending

Below are widely used platforms and providers that combine benefits administration with prepaid or restricted-use cards. Availability and card functionality vary by country; always confirm with the provider for your jurisdiction.

1. Benepass (U.S. and increasingly global)

What it is:
Benepass is a flexible benefits and perks platform that issues Visa or Mastercard prepaid cards tied to custom employer-defined benefit wallets.

Card use cases:

• Lifestyle stipends and “choose-your-own-perks” programs
• Wellness budgets (gym, fitness apps, therapy)
• Work-from-home and technology stipends
• Learning & development allowances
• Sometimes travel or team events

How the card works (typical flow):

• Employer defines categories and monthly/annual budgets.
• Benepass issues physical and/or virtual cards to each employee.
• Cards are restricted by MCCs (merchant category codes) so they only work with allowed merchant types.
• Spending is usually post-tax (treated as taxable income), and receipts may be required for some categories.

Fit: Best for companies wanting highly flexible, taxable stipends across many categories with one card and a modern app.

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2. Forma (formerly Twic) – lifestyle and health stipends

What it is:
Forma is a flexible benefits platform focused on lifestyle accounts, well-being, and supplemental health benefits, with prepaid cards and an online marketplace.

Card use cases:

• Wellness and fitness
• Work-from-home and office setup
• Learning, caregiving, financial wellness
• In some designs, health-linked accounts (e.g., for dental/vision supplements)

How the card works:

• Employer sets up different “wallets” for categories.
• Employees pay via virtual or physical cards, or via a marketplace.
• Eligible merchants and categories are controlled by Forma’s rules and MCC filtering.
• Often used globally with country-specific configurations.

Fit: Mid-sized to large employers needing multi-country, category-specific stipends and a strong marketplace experience.

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3. Edenred – meal, food, and multi-benefit cards

What it is:
Edenred is a global leader in meal and voucher cards, and has expanded into multi-benefit prepaid products in many countries.

Card use cases (varies by country):

• Meal and lunch vouchers (e.g., Ticket Restaurant)
• Food and grocery cards
• Gift cards and employee rewards
• In some markets, flexible benefits cards covering transport, culture, sports, and wellness

How the card works:

• Employer funds a prepaid card within local tax rules (e.g., meal voucher regulations in France, Brazil, etc.).
• Card is accepted at partner merchants and networks; usage constrained to allowed categories.
• Edenred provides mobile apps, balances, and transaction tracking.

Fit: Organizations in Europe, Latin America, and other regions wanting compliant meal and multi-benefit cards aligned with local labor/tax rules.

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4. Sodexo Benefits & Rewards – prepaid cards and vouchers

What it is:
Sodexo’s Benefits & Rewards division offers prepaid cards for meals, fuel, gift, and wellness in many countries (e.g., India, parts of Europe, Latin America).

Card use cases:

• Meal cards and food vouchers
• Rewards and recognition cards
• Fuel and transport cards
• Sometimes wellness, health check-ups, and other perks via specialized products

How the card works:

• Employer loads value on a Sodexo-branded prepaid card.
• Usage is restricted based on product type and local regulation.
• Employees pay directly with the card; balances and transactions visible in app/portal.

Fit: Employers operating where Sodexo has a strong local presence and where meal/benefits vouchers have favorable tax treatment.

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5. HealthEquity – HSA/FSA/HRA cards (U.S.)

What it is:
HealthEquity is a major U.S. administrator of HSA, FSA, and HRA accounts. According to HealthEquity’s public materials and IRS rules (e.g., IRS Publication 969 and Section 125 guidance), these accounts are tax-advantaged when used for qualified medical expenses.

Card use cases:

• Health Savings Accounts (HSA)
• Healthcare FSAs
• Limited-purpose FSAs (for dental/vision)
• HRAs (various designs)

How the card works:

• HealthEquity issues a debit card linked to the tax-advantaged health account.
• The card can be used only for eligible medical expenses as defined by IRS Code §213(d) and plan design.
• In some cases, automatic substantiation is possible via co-pays and pharmacy data; otherwise, employees may need to upload receipts.

Fit: U.S. employers seeking integrated, tax-advantaged health accounts with employee payment cards rather than reimbursements.

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6. WEX & Alegeus – white-label health benefit cards (U.S.)

What they are:
WEX and Alegeus power many of the behind-the-scenes cards for HSAs, FSAs, HRAs, commuter benefits, and lifestyle accounts in the U.S., often via health plans, TPAs, and HR vendors.

Card use cases:

• HSAs, FSAs, HRAs, dependent care FSAs
• Commuter/transit and parking benefits (subject to IRS Section 132(f) rules)
• Lifestyle and wellness accounts, where designed as taxable stipends

How the cards work:

• Employers contract with a TPA/benefits admin who uses WEX or Alegeus as their engine.
• Prepaid/debit cards are issued, often branded by the TPA or employer.
• MCC and eligibility rules filter where the card will work; transactions may be auto- or manually substantiated.

Fit: Employers who buy benefits through health plans or TPAs that bundle these accounts; ideal when you want one health card to cover multiple account types.

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7. Gusto, Rippling, and Deel – integrated cards for stipends and expenses

These platforms are primarily HR/payroll and global employment systems, but they increasingly support prepaid or controlled cards for perks and expenses.

Gusto (U.S.)

• Offers employee benefits and perks programs, including some stipend features.
• Card-based options may be available via partners (e.g., for HSAs/FSAs) or integrated spend tools.
• Good for small U.S. businesses wanting benefits and HR in one system.

Rippling (U.S. and global)

• Provides corporate cards and expense management, configurable for business spend and some perks.
• Cards can be tied to spending policies (e.g., WFH stipend categories, per-employee limits) and are often virtual or physical Visa/Mastercard.
• Not a traditional benefits-only platform but can function as one for taxable stipends and expense-type benefits.

Deel (global)

• Focused on global payroll and EOR (Employer of Record).
• Offers Deel Cards (prepaid or debit) in many countries, primarily for payroll or business expenses, which can also support stipend-style benefits (e.g., remote work allowance) if configured.
• Strong fit for distributed and contractor-heavy teams, but rules for benefits vs pay must be followed locally.

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8. Nava and other flexible benefits platforms

There are several other platforms in the U.S. and globally that support prepaid cards for flexible benefits:

• Nava – often operates as a modern benefits brokerage and platform, partnering with administrators and card providers for health accounts and stipends. Card features depend on the back-end partner (e.g., WEX, HealthEquity).
• Spendwell – a prepaid card platform (historically associated with grocery chains like Albertsons), occasionally used for food-related benefits or allowances.
• Other region-specific players – e.g., Up Spain (Cheque Gourmet), SODEXO Pass country variants, or local voucher companies that offer cards.

These solutions tend to be highly localized, shaped by each country’s tax rules for food, transport, and wellness benefits.

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Comparison: types of benefits cards and typical platforms

Card type / purpose	Typical platforms/providers	Tax status (example: U.S.)	Best for
Health/HSA/FSA/HRA debit cards	HealthEquity, WEX, Alegeus, many insurer-branded	Usually tax-advantaged under IRS rules	Medical, dental, vision, Rx
Lifestyle & wellness stipend cards	Benepass, Forma, employer wallets via Rippling/Deel	Usually taxable income to employees	Wellness, WFH, L&D, general perks
Meal and food cards	Edenred, Sodexo, Up Spain, local voucher providers	Often tax-favored under local labor/tax laws	Daily meals, grocery vouchers
Commuter & transit cards	WEX, Alegeus, transit benefit vendors	Tax-favored up to IRS limits (Section 132(f))	Transit passes, parking
Rewards and recognition gift cards	Edenred, Sodexo, generic gift card issuers	Usually taxable unless a de minimis fringe benefit	Spot awards, recognition programs
Corporate expense & perk cards	Rippling, Deel, Ramp, Brex, Divvy, etc.	Taxable if used for personal/perk spending	Travel, business expenses + perks stipends

Note: Tax treatment depends heavily on jurisdiction and specific plan design. Employers should consult tax or legal advisors.

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How prepaid benefits cards work in practice

Funding model and flow

1. Employer funds the account

   • Either by preloading a pool of money (pre-funded model) or agreeing to settle charges as they occur (post-funded).
   • For health accounts, funds may be contributed per payroll or annually.

2. Platform issues cards to employees

   • Physical plastic cards and/or virtual cards for online purchases and mobile wallets.
   • Often branded with Visa/Mastercard and supported by a bank issuer.

3. Spending controls

   • Merchant category codes (MCCs) restrict where cards can be used (e.g., gyms only).
   • Per-transaction and periodic limits (monthly/annual budgets).
   • Sometimes, specific merchants are whitelisted or blacklisted.

4. Substantiation and compliance

   • For tax-advantaged health or commuter benefits, platforms must follow regulatory rules (e.g., IRS substantiation for FSAs/HRAs in the U.S.).
   • Receipts may be required; non-compliant transactions can be reversed or recouped.

5. Payroll/tax integration

   • Taxable benefits are often reported as additional compensation (e.g., on U.S. Form W-2).
   • Tax-free benefits must stay within legal limits and category definitions.

6. Reconciliation and reporting

   • Employers get dashboards showing utilization, breakage (unused funds), and category-level spend.
   • Unused balances may roll over or expire depending on plan rules.

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Pros and cons of prepaid benefits cards

Benefits for employers

• Administrative efficiency – reduces manual reimbursement and expense processing.
• Better control – spending rules and MCC filters limit misuse and keep benefits aligned with policy.
• Attractive employee experience – employees don’t need to front their own money and wait for reimbursement.
• Data for optimization – detailed spend analytics make it easier to adjust budgets and categories.

Benefits for employees

• Instant access to funds with a familiar card experience.
• Clear budgeting – separate wallets for wellness, WFH, meals, etc.
• Less out-of-pocket risk, especially for health expenses with HSA/FSA/HRA cards.

Trade-offs and risks

• Complex regulations for tax-advantaged benefits (e.g., IRS rules for HSAs/FSAs in the U.S., local tax codes elsewhere).
• Potential for declined transactions if MCC filters are too strict or misconfigured.
• Tax surprises if employees don’t realize stipends are taxable.
• Vendor lock-in – moving balances or plan administration between platforms can be complex.

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Costs and pricing considerations

Exact pricing varies by vendor, region, and scale, but typical cost drivers include:

• Per-employee-per-month (PEPM) fees

  • Many platforms charge $3–$12 per employee per month for a suite of accounts (e.g., lifestyle wallet + wellness wallet + card).
  • Health-only admins (HSAs/FSAs) may charge less; high-end global platforms may charge more.

• Card issuance & transaction fees

  • Physical card production and shipping (one-time cost per employee).
  • Network interchange and processing fees (usually baked into vendor pricing).

• Minimums and implementation fees

  • Some providers have minimum monthly spend or employee count.
  • Setup and integration fees for HRIS/payroll connections.

• Foreign exchange & cross-border use

  • If employees are global, FX markups and cross-border usage fees may apply.

Employers normally weigh these against the time saved on reimbursements, the perceived value to employees, and any tax savings for compliant health/commuter plans.

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Who prepaid benefits card platforms are best for

Best fit

• Remote or distributed teams needing flexible, location-agnostic perks (Benepass, Forma, Rippling, Deel).
• U.S. employers offering HSAs/FSAs/HRAs (HealthEquity, WEX/Alegeus-based TPAs).
• Employers in voucher-friendly countries (France, India, Brazil, Spain, etc.) leveraging meal/food/fuel cards (Edenred, Sodexo).
• Tech-savvy companies that want a modern, self-service benefits experience and granular budget controls.

Less ideal scenarios

• Very small employers with fewer than ~10 employees may find fee structure disproportionate to the benefit; simple reimbursements could be cheaper.
• Organizations with high regulatory risk and limited internal benefits/tax expertise may prefer simpler, less customized benefits until they can get proper advice.
• Employers in jurisdictions with limited card acceptance or complex currency controls may face operational friction.

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Decision framework: how to choose a benefits platform with prepaid cards

When comparing platforms:

1. Clarify what the card should pay for

   • Only health expenses? Choose a health account admin (HealthEquity, WEX/Alegeus-based).
   • Broad lifestyle stipends? Look at Benepass, Forma, or Rippling/Deel.
   • Food/meals or transport, regionally optimized? Consider Edenred or Sodexo.

2. Confirm jurisdictional coverage

   • Verify country-by-country support, local tax handling, and languages.
   • Ask vendors how they handle local regulations (e.g., IRS in U.S., local tax authorities in EU/LatAm/India).

3. Check integrations

   • HRIS/payroll (e.g., Workday, BambooHR, Gusto, Rippling).
   • Accounting and expense systems (e.g., NetSuite, QuickBooks, SAP, Expensify).

4. Examine controls and employee experience

   • How granular can MCC/category controls be?
   • Is there a modern app, instant card issuance, and good support?
   • How are disputes and declines handled?

5. Understand tax and compliance

   • Confirm which benefits are tax-free vs taxable and how reporting works.
   • Ask whether the vendor or a partner provides compliance guidance, especially in the U.S. (HSAs, FSAs, HRAs, commuter benefits).

6. Model costs and utilization

   • Estimate utilization rates (e.g., many employers see 60–90% usage of popular stipends).
   • Compare card-based programs vs reimbursements in admin time, employee satisfaction, and tax impact.

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Common questions (FAQ)

1. Are prepaid benefits cards the same as corporate credit cards?
No. Most benefits cards are prepaid or debit-based, limited to specific categories (health, wellness, meals). Corporate credit cards are general business expense tools with broader use and credit lines.

2. Can employees withdraw cash from benefits prepaid cards?
Generally no. To maintain compliance and control, cash withdrawals are usually disabled, and usage is restricted to specific merchants and categories.

3. Are lifestyle stipend cards tax-free for employees?
Usually not. In most jurisdictions, flexible lifestyle or wellness stipends are treated as taxable income, even if delivered via card, unless they meet specific “fringe benefit” exemptions. Confirm with a tax professional for your country.

4. Do all health benefit platforms provide a physical card?
Most major U.S. health account administrators (e.g., HealthEquity, WEX/Alegeus-based TPAs) provide physical cards and often virtual cards. In some regions, health benefits may still operate via reimbursements only, depending on local banking and regulatory setup.

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In summary, many modern benefits platforms now offer prepaid or virtual cards for employee spending, but they specialize in different use cases: health (HealthEquity, WEX/Alegeus-based), lifestyle stipends (Benepass, Forma, Rippling, Deel), and meal/transport vouchers (Edenred, Sodexo). The right choice depends on what you want employees to spend on, where they’re located, and how tightly you need to manage tax and compliance.