Auto-substantiation is used in the healthcare industry as a result of IRS Notice 2006-69 for consumers to use flexible spending account (FSA/HRA) debit cards where the transaction is automatically substantiated at the POS. For merchants who support auto-substantiation at the POS, consumers no longer need to file a separate claim for benefits

To take advantage of auto-substantiation, the merchant must use an Inventory Information Approval System (IIAS). The IIAS identifies the qualified healthcare products being purchased by the cardholder at the POS. The IIAS must identify the FSA and HRA cards, automatically differentiate between qualified and non-qualified products at the POS, flag the items on the customer receipt, subtotal the qualified healthcare products amount including tax and discounts, and accommodate split-tender capability for non-qualified products.

See the AutoSubstantiation Complex Type in the Portico Schema.