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Answers - The 'Nuts & Bolts' of understanding Merchant Account Rates on your Payment Processing Provider's
WHAT ARE MERCHANT ACCOUNTS?
There are four most common Merchant Accounts:
• Visa Merchant Account
• MasterCard Merchant Account
• American Express Merchant Account
• Interac (Debit Cards/Bank Debit Cards) Merchant
There are four most common Merchant Accounts:
• Visa Merchant Account
• MasterCard Merchant Account
• American Express Merchant Account
• Interac (Debit Cards/Bank Debit Cards) Merchant
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
Account
When you are setting-up your Payment Process System you will apply for Merchants Accounts on each Card that you would like to be able to allow your Customers/Clients to be able to pay by (if they so desire to do so).
When you are setting-up your Payment Process System you will apply for Merchants Accounts on each Card that you would like to be able to allow your Customers/Clients to be able to pay by (if they so desire to do so).
; 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
You do not have to have Merchant Accounts on all Cards. You can pick and choose which Cards you wish your Payment Processing System to process. You can usually always add additional cards as time goes on.
Most Merchants will ini
Most Merchants will ini
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
ially get set-up with, at least, a Debit Merchant Account and usually Visa & MasterCard Merchant Accounts.
Once you have been approved for each Card you will be given an individual Merchant number for each Merchant Account that is
Once you have been approved for each Card you will be given an individual Merchant number for each Merchant Account that is
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
programmed on your Payment Processing System.
WHAT ARE THE FEES ASSOCIATED WITH ACCEPTING DEBIT & CREDIT CARDS?
What you have to take into consideration is that all Payment Processing Companies structure their Monthly fees in di
WHAT ARE THE FEES ASSOCIATED WITH ACCEPTING DEBIT & CREDIT CARDS?
What you have to take into consideration is that all Payment Processing Companies structure their Monthly fees in di
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
ferent ways. It is not a good idea to compare Debit costs to Debit costs, Credit Card costs to Credit Card costs, or POS Terminal costs to POS Terminal Costs.
The best way to compare pricing and costs from provider to provider is
The best way to compare pricing and costs from provider to provider is
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
to make sure you have all the questions answered that I have listed in the article called “The 17 Essential Questions for selecting a Payment Processing Provider” which can be found at http://www.cutmyposfees.com Once you have a
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
ll those questions answered then total up the over all costs with each provider and see which one comes out on top. (Scroll down the Page for Examples)
EXAMPLES:
DEBIT CARD MERCHANT ACCOUNTS: Each Merchant Account has different
EXAMPLES:
DEBIT CARD MERCHANT ACCOUNTS: Each Merchant Account has different
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
rates and fees associated with them. Typically Retail Debit Transaction Fees are just a flat rate. An example Debit Transaction rate would be: 12 cents per Debit Transaction. It does not matter whether the Transaction processed
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
was for $5 or $5000 the fee would be 0.12cents for the transaction to take place. Now some Payment Processing Companies will charge you a Low Transaction rate on your Debit Transactions (like 0.05cents) and a % of your sales (like
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
0.0025%) that is a quarter of 1 percent. This may seem like a good deal, but rarely is.
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
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
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
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
Average Ticket: 23.56
0.05 cents X 576 = $28.80
$13,876.00 X 0.0025% = $46.94
$28.80 + 46.94 = $75.74 in your monthly Debit Fees
You can see that Example 1 is cheaper by $6.62 even though it may initially look
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
like Example 2 would have been less expensive. Typically, it is always better to have a flat Debit Fee only on your Debit Merchant Account. The only time the lower Debit Fee + % works in your favour on Debit Merchant Accounts is
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
if you have a very high Debit transactions on with a very low average Debit ticket price.
CREDIT CARD MERCHANT ACCOUNTS Again each Merchant Account has different fees associated with Credit Card Processing. Typically, it is a %
CREDIT CARD MERCHANT ACCOUNTS Again each Merchant Account has different fees associated with Credit Card Processing. Typically, it is a %
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
f your monthly sales amount + a flat transaction fee. However, Payment Processing Companies do not charge a flat transaction fee, just the % on the monthly sales volume. When is comes to Credit Card Merchant Accounts it usually t
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
he % that you want to keep as low as possible and it is not usually as much an issue with the flat transaction fee.
Example 1:
Credit Card Discount Rate: 2.65%
No Transaction Fee: 0.00
327 Transactions
$18,267.00 i
Example 1:
Credit Card Discount Rate: 2.65%
No Transaction Fee: 0.00
327 Transactions
$18,267.00 i
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
n Credit Card Sales that month
Average Ticket Price: $55.86
2.65% X $18,267.00 = $484.07 in Credit Card Processing Fees that month
Example 2:
Credit Card Discount Rate: 1.89%
Transaction Fee: 0.10 cents
327 Tr
Average Ticket Price: $55.86
2.65% X $18,267.00 = $484.07 in Credit Card Processing Fees that month
Example 2:
Credit Card Discount Rate: 1.89%
Transaction Fee: 0.10 cents
327 Tr
.
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
nsactions
$18,267.00 in Credit Card Sales that month
Average Ticket Price: $55.86
327 Transactions X 0.10 cents = $32.70
1.89% X $18,267.00 = $345.24
$32.70 + $345.24 = $377.94 in Credit Card Processing Fee
$18,267.00 in Credit Card Sales that month
Average Ticket Price: $55.86
327 Transactions X 0.10 cents = $32.70
1.89% X $18,267.00 = $345.24
$32.70 + $345.24 = $377.94 in Credit Card Processing Fee
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
s that month
It is obvious in this Example that example 2 is the better Merchant Account to go with.
*IT IS VERY IMPORTANT THAT YOU LOOK AT THE OVER-ALL PROGRAM TO FIND WHICH MERCHANT ACCOUNTS RATES ARE BEST FOR YOUR BUSINESS
It is obvious in this Example that example 2 is the better Merchant Account to go with.
*IT IS VERY IMPORTANT THAT YOU LOOK AT THE OVER-ALL PROGRAM TO FIND WHICH MERCHANT ACCOUNTS RATES ARE BEST FOR YOUR BUSINESS
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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