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Advice You - Getting a Real Merchant Account or Using 3rd Party Processors Like PayPal(R) - Which is Better?
A lot of folks see PayPal, ClickBank and other third-party agents as the optimal method of doing business excluding a Merchant Account. This view is substantiated because there is usually no application process, and a few companies, PayPal for example, do not have any fee
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
s up-front. This feature boosts their appeal to "shoestring" start-ups and companies that deal in online (digital) products. A bargain is not always the 'cheapest' product.
Why don't we discuss the real differences between going with a third-party company (such as PayPal
Why don't we discuss the real differences between going with a third-party company (such as PayPal
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
) and setting up a merchant account of your own...
1. A regular merchant account will charge between $100 - $250 initially to set up, a minimum monthly fee (minimum charges incurred) of $25 and $5+ to send out statements. These companies will bill you somewhere around 1%
1. A regular merchant account will charge between $100 - $250 initially to set up, a minimum monthly fee (minimum charges incurred) of $25 and $5+ to send out statements. These companies will bill you somewhere around 1%
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
to 4% or even more per transaction (discount rate) - this varies with your business type - and a majority also use some kind of flat-fee for transactions. These fees range from $0.05 to $0.25
In contrast, PayPal does not charge a set up fee. They do have a 2.9% discount
In contrast, PayPal does not charge a set up fee. They do have a 2.9% discount
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
rate and charge 30 cents for each transaction. CC Now lacks fees except a 9% per transaction charge. ClickBank's set-up fee is $49.95. They charge no monthly fee, but a transaction fee of $1 in addition to 7%. DigiBuy has a set-up fee of $29.95 and no monthly fee. They d
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
o charge 13.9% or $3 per transaction (you pay the larger fee).
To better explain the fees involved, essentially, as soon as you build up a noteworthy sales volume ($1000/month or more), the costs involved with utilizing companies such as ClickBank, CCNow and DigiBuy far
To better explain the fees involved, essentially, as soon as you build up a noteworthy sales volume ($1000/month or more), the costs involved with utilizing companies such as ClickBank, CCNow and DigiBuy far
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
exceed what you would pay for a true merchant account that really works with your business. The advertised discount rate is normally where most of the money is used anyway, and this is how third-parties usually take in all their money.
PayPal, however, has a quite afford
PayPal, however, has a quite afford
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
able discount rate, and the sole extra charge incurred for a regular account is the 30 cents transaction fee. In fact, if the average charges of a traditional merchant account are compared with PayPal's strictly from a "numbers" standpoint, the only time it is less expens
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
ive to use a merchant account is if your transactions are upwards of $50,000 monthly.
This perspective is only taking considering the actual numbers involved - and not any other variables that crop up when conducting business online, or offline...
2. Initially, it seems
This perspective is only taking considering the actual numbers involved - and not any other variables that crop up when conducting business online, or offline...
2. Initially, it seems
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
like PayPal is by far the better choice. Their low discount rate and transaction fees are without equal, and there is almost no entry impediment. You can start a PayPal account at no cost in a few minutes, and you are able to begin taking payments the moment your details
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
are verified. For some small-time sellers and internet entrepreneurs, PayPal is just the ticket.
However, there are huge shortcomings that are not disclosed in the black and white contrast table that deals with cash - the value of the service could be different after you
However, there are huge shortcomings that are not disclosed in the black and white contrast table that deals with cash - the value of the service could be different after you
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
understand the following:
a. Many times these alternatives don't deal with support requests quickly; there have been times that delays persisted for several weeks.
b. Paypal does not give you access to your customer's credit card number, neither do any of the other thi
a. Many times these alternatives don't deal with support requests quickly; there have been times that delays persisted for several weeks.
b. Paypal does not give you access to your customer's credit card number, neither do any of the other thi
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
rd party service bureaus
c. A great majority of the alternatives cannot calculate shipping charges and taxes in their shopping carts
d. Some other companies are only serviceable for large profit-margin sales because of the expensive charges per sale (eg. DigiBuy charges
c. A great majority of the alternatives cannot calculate shipping charges and taxes in their shopping carts
d. Some other companies are only serviceable for large profit-margin sales because of the expensive charges per sale (eg. DigiBuy charges
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
14% per sale which is huge)
e. Many alternatives to the merchant account lack a shopping cart altogether (eg. ClickBank), while like Paypal's is crude to say the least
f. PayPal has been known to shut down accounts and freeze funds - without warning - based solely on t
e. Many alternatives to the merchant account lack a shopping cart altogether (eg. ClickBank), while like Paypal's is crude to say the least
f. PayPal has been known to shut down accounts and freeze funds - without warning - based solely on t
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
he hunches of employees that feel that vendors have violated their terms of service.
g. If you're especially accomplished at marketing, and if you render an ample amount of sales during a launch - you should not be startled if your account ends up being "red-flagged", fr
g. If you're especially accomplished at marketing, and if you render an ample amount of sales during a launch - you should not be startled if your account ends up being "red-flagged", fr
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
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
ozen and audited. And this will take place, once again, without warning.
In comparison, this is what you can anticipate from a merchant account:
1. If you are processing sales online, you will have the ability to enter your merchant details into an easy to use, uncompli
In comparison, this is what you can anticipate from a merchant account:
1. If you are processing sales online, you will have the ability to enter your merchant details into an easy to use, uncompli
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
cated menu-driven (shopping-cart) interface/gateway - and there are several that are readily obtainable, even free ones such as OSCommerce. These are is simple to use by potential clients, and all-inclusive in terms of assembling crucial data
2. You can allow you to modi
2. You can allow you to modi
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
fy the shopping cart to fit your precise purpose including the shipping costs and taxes
3. It will show you your clients' credit card numbers to make tracking, refunds, etc. easier.
4. It will assist you in fully automating your business's payment processing
In other w
3. It will show you your clients' credit card numbers to make tracking, refunds, etc. easier.
4. It will assist you in fully automating your business's payment processing
In other w
.
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
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
ords, when you are starting out and your sales volume is low, a more cost-effective approach could be to use services like PayPal. However, when your sales increase - or if you desire more control over your ordering process, at the same time saving cash on higher sales vo
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
lumes, a merchant account is a better choice.
In conclusion, if you're sincere about making your small business succeed, you will sooner or later need to obtain a merchant account. It's more cost effective, and you have much greater control over the money being processed
In conclusion, if you're sincere about making your small business succeed, you will sooner or later need to obtain a merchant account. It's more cost effective, and you have much greater control over the money being processed
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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