Auto substantiation for over-the-counter transactions

A method of authorizing a payment transaction request for a product under a flexible spending account of a consumer, said method comprising:

• storing a set of qualified product categories eligible for usage under a flexible spending account, wherein said set of qualified product categories is accessible via an electronic cash register;
• storing a set of account identifiers for identifying a set of flexible spending accounts, wherein said set of account identifiers is accessible via said electronic cash register;
• obtaining from a consumer a consumer flexible spending account identifier by obtaining a flexible spending account payment card from said consumer;
• determining whether said consumer flexible spending account identifier obtained from said consumer matches one of said account identifiers in said set of account identifiers;
• obtaining a product inventory code for a product requested for purchase by said consumer;
• determining that said product inventory code matches one of said qualified product categories;
• sending a payment network authorization request message for requesting use of said flexible spending account of said consumer, wherein said authorization request message comprises:
• a total purchase amount field;
• a first qualified amount field for a first type of qualified items, wherein said total amount of qualified items includes tax on said qualified items;
• a second qualified amount field for a second type of qualified items;
• receiving said payment network authorization request message at an account issuer processing system;
• determining at said issuer processing system that said flexible spending account is authorized;
• sending an authorization approval message in reply to said authorization request message;
• receiving said authorization approval message at said electronic cash register;
• and
• completing said sale.

A method of processing a payment transaction for a purchase of a consumer wherein said flexible spending account has insufficient funds to cover the entire cost of said purchase, said method comprising:

• sending a payment network authorization request message for requesting use of said flexible spending account of said consumer for said purchase;
• determining that the available balance in said flexible spending account of said consumer is not sufficient to approve a full qualified amount for said purchase;
• receiving authorization to pay for a first portion of said purchase with said flexible spending account;
• and
• processing payment for the remaining portion of said purchase with an alternative source of payment from said flexible spending account.

A method of processing a payment transaction for a first product authorized with a flexible spending account of a consumer and a second product not authorized under said flexible spending account, said method comprising:

• sending a payment network authorization request message for requesting use of said flexible spending account of said consumer for said first product;
• receiving authorization to pay for said first product with said flexible spending account;
• determining that said second product is not authorized under said flexible spending account;
• and
• processing payment for said second product with an alternative source of payment from said flexible spending account.

A method of submitting product information through a payment network for a flexible spending account of a consumer for processing by an auditor of said flexible spending account, said method comprising:

• conducting a transaction with said consumer for purchase of a qualified product under said flexible spending account;
• preparing with a computer a transaction record of said conducted purchase;
• and
• sending said transaction record to said auditor of said flexible spending account.

A method of submitting product information of a flexible spending account for processing by an auditor of said flexible spending account, said method comprising:

• conducting a transaction with a consumer for purchase of a product with said flexible spending account;
• receiving authorization for said purchase with said flexible spending account;
• preparing with a computer a transaction record of said purchase, wherein said transaction record comprises:
• a product description field;
• a purchase amount field;
• a tax amount field;
• appending said transaction record to a settlement record;
• sending said transaction record to an auditor of said flexible spending account,
• wherein said sending said transaction record to an auditor of said flexible spending account comprises:
• sending said transaction record to an acquirer of said merchant;
• sending said transaction record from the acquirer of said merchant to a payment network system;
• sending said transaction record from the payment network system to an issuer of the flexible spending account;
• sending the transaction record from the issuer to said auditor;
• utilizing said payment network settlement record to complete payment while forwarding said transaction record to said client of said issuer to monitor program compliance.