What’s Required for 90% Rule Merchants

To register for participation in the SIGIS 90% Rule program, the IRS requires that drug stores/pharmacies qualify on a store location by store location basis. During registration, a drug store/pharmacy attests that 90% of the store's gross receipts during the prior taxable year consisted of items which qualify as medical expenses (including over-the-counter eligible healthcare items).

Registration requires that the merchant is able to provide information from data fields found in payment card authorization messages. This means that 90% Rule merchants must be in touch with their acquirer, acquirer processor or POS servicer to obtain the correct information to complete the 90% Rule registration. Contact your acquirer or POS servicer before registering your stores. Get a copy of the SIGIS 90% Rule Program Implementation Procedures via the Members Area.

Once 90% Rule registration is complete, SIGIS will communicate the merchant’s Store ID/Card Acceptor ID of registered store locations, to issuer processor Members. Store locations of 90% Rule merchants will also be published by SIGIS for access by Plan Administrators and consumers.

Each tax year the IRS will require 90% Rule merchants to re-register the qualification of each store as a 90% Rule location. Failure to do so, will mean removal from the program.