Qualified Transit Locations
As a reminder to our clients on January 1, 2012, IRS Revenue Ruling 2006-57 added restrictions to the usage of Transportation Benefit Debit Cards. Beginning on January 1, 2012 any Transportation Benefit Debit Cards with HR Concepts were restricted for use at merchant terminals which only sell transit fare media. The regulation indicates that the benefit card must be terminal restricted so that the transactions are limited to POS terminals that sell only transit fare media. Please review the qualified transit ID list to determine which transit authorities are in compliance with the IRS ruling. If a transaction is denied at a terminal or kiosk it is likely due to that terminal not being on the list. This is typically a temporary issue that the Transit Authority will address but nevertheless can impact transit participants looking to purchase fare media.