Advice You - Business

The Two Components of a Credit/Debit Card Transaction
Each time you process a credit or debit card transaction, you are charged an inquiry fee and a percentage of the total transa

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ction. The inquiry fee is a flat amount, typically between 20 cents and 35 cents. The percentage charged, is typically called your "credit card rate" and it is variable based on the type of transaction

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

and the type of card used.

Credit Card Rate Categories
Credit Card Rates are typically broken into two categories:

Card Present (where the card is physically sw

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

iped through a credit card terminal)
The lowest rates are typically applied to card-present transactions.

Card Not Present (any type of transaction where the card cannot

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

be swiped)
This type of transaction is also referred to as MOTO (mail order/telephone order). All transactions where a credit card is not physically swiped through a terminal, including internet tr

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

ansactions, phone transactions, or credit-card numbers keyed into a terminal, fall into this category.

Credit Card Rate Types
The rate for each credit card transac

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

tion type is determined by both the kind of card used, the way it is processed, and the time it takes the merchant to batch the transactions for processing. It is important to know whether you do mostly

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

card present or card not present transactions when selecting a plan type, because card not present charges are significantly higher in a Type 1 plan than in a Type 4 plan.

Card Present

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

(where the card is physically swiped through a credit card terminal)
The lowest rates are typically applied to card-present transactions.

Card Not Present (any type of tran

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

saction where the card cannot be swiped)
This type of transaction is also referred to as MOTO (mail order/telephone order). All transactions where a credit card is not physically swiped through a t

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

rminal, including internet transactions, phone transactions, or credit-card numbers keyed into a terminal, fall into this category.

Debit Card Rates
Debit cards ar

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

e classified the exact same way credit cards are, but the rate for a debit card transaction of the same category and type is typically lower than the rate for a credit card.

Money Saving Ti

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ps

1. If you have an account that gives you good rates for card-present transactions it will typically penalize you heavily for card-not present transactions. However, you can get a Mercha

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

nt Account that is designed for these Card Not Present transactions that will provide you with substantially lower rates. Thus, before selecting an account you need to understand the type of transaction

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

s you use most. Also note that it is very important to immediately destroy credit card information provided in writing or over the phone and to store electronically submitted information (such as that s

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

ubmitted over the Internet) on a secure server.

Tip: If you regularly have both types of transactions, create two accounts. One Type 1 account and one Type 4 account.

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

/ul>2. Make sure your credit card processor is giving you separate lower rates for Debit Card transactions. They can afford to charge you less for these transactions, because their risk of non-payment i

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

s substantially lower. Approximately half of the transactions nationally are actually debit cards transactions, so if you're not getting the benefit of a lower rate, you are paying too much.

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

i>Tip: Very low Type 1 Qualified Debit Card rates are often advertised as teasers to get people to switch Merchant Accounts. Know what percentage of your transactions fall into this category bef

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

ore making a switch.

Make sure you know what you are really paying!

***********************************************************************************

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.adviceyou.org.ua/article/2766/adviceyou-Merchant-Account-Rates-ExplainedDo-You-Know-How-Much-Each-Credit-Card-Transaction-Really-Costs-You.html">Merchant Account Rates Explained:Do You Know How Much Each Credit Card Transaction Really Costs You?</a>

BB link (for phorums):
[url=http://www.adviceyou.org.ua/article/2766/adviceyou-Merchant-Account-Rates-ExplainedDo-You-Know-How-Much-Each-Credit-Card-Transaction-Really-Costs-You.html]Merchant Account Rates Explained:Do You Know How Much Each Credit Card Transaction Really Costs You?[/url]

Are you sick and tired of getting harassing telemarketing sales calls while you are trying to get your work done. Stop these harassing calls easily with just a few steps.

Globalization has a negative and positive impact on African economies. It in effect means that you can invest in Africa without setting foot on the continent or you can work in Africa and invest save your money elsewhere.

Metal detectors are electronic equipments used to locate metal objects that are hidden in baggage, ground or on the person?s body. Metal detectors are used for various purposes such as security maintenance, item recovery, archaeological exploration, and geological research. Main parts of metal detectors are control box, shaft, and search coil. Control box which has speaker, batteries, and microprocessor coordinates all activities. The performances of the detectors depend on the features of various parts. Best rated metal detectors are classified according to their performances.

Tags

Links

Advice You - Merchant Account Rates Explained:Do You Know How Much Each Credit Card Transaction Really Costs You?

Related Articles: