Visa Inc. · NYSE:V
Visa — Online Pharmacy Guide for Acquirers Webinar August 5-6, 2014
25 slides from Visa's conference presentation, August 2014
Slide 1: Pharmaceutical Guidelines Overview
Pharmaceutical Guidelines Overview Elizabeth Scofield Visa Global Brand Protection John Horton President and Founder, LegitScript August 5 & 6, 2014 Visa Public
Slide 2: Disclaimer
Disclaimer Notice: Please be advised that the information contained in this presentation is evolving, and is not intended to be legal advice. Please consult with your own legal advisor when considering this information. Visa is not responsible for the use of this information, including errors of any
Slide 3: Online Pharmaceuticals: Why the focus?
Online Pharmaceuticals Why the focus? 15 April 2014 22 May 2014 Google faces new pressure from states to crack down on illegal online drug sales Several state attorneys general are pressing Google to make it harder for its users to find counterfeit prescription medicine and illegal drugs online, mar
Slide 4: What are the rules for Internet Pharmacy Merchants?
What are the rules for Internet Pharmacy Merchants? Visa International Operating Regulations • Requirements – Clients must comply with applicable laws or regulations – Transactions must be legal in both the buyers and sellers jurisdiction • Ineligible Payment Facilitator (PF) Merchant Type – PF are
Slide 5: Underwriting Internet Pharmacy Merchants
Underwriting Internet Pharmacy Merchants What is required? • Acquirers must ensure all their operations comply with the Visa International Operating Regulations and the minimum standards described in the Visa Global Acquirer Risk Standards Guide, including having adequate Control policies as they re
Slide 6: Internet Pharmacy Merchants: Underwriting and Oversight
LegitScript July 2014 Internet Pharmacy Merchants Underwriting and Oversight John Horton, President and Founder 6 | Pharmaceutical Guidelines Overview |
Slide 7: A quick introduction
A quick introduction Anti-abuse LegitScript maintains the world’s largest list of online healthcare Merchant merchants, such as Internet pharmacies, supplement and other drug monitoring. Monitoring merchants organized by legitimacy and country. We work in over a LegitScript works with numerous compa
Slide 8: When is a merchant an Internet pharmacy?
When is a merchant an Internet pharmacy? • A merchant is an Internet pharmacy if it sells, dispenses or markets, or facilitates the selling, dispensing or marketing of, a prescription or pharmacy-only medicine in response to orders placed over the Internet*. • In some jurisdictions, but not all, web
Slide 9: Internet Pharmacies: A Market Overview
Internet Pharmacies: A Market Overview • About 25,000 – 42,500 Internet pharmacies active at any one time • Worldwide, an average of 97% of Internet pharmacy websites are illicit; 3% of websites operate lawfully • Measured by merchant, probably 2/3 are illicit; 1/3 are legitimate • Counterfeit drug
Slide 10: What Makes an Internet Pharmacy Illegal?
What Makes an Internet Pharmacy Illegal? A “rogue” Internet pharmacy sells prescription drugs in a way that violates drug and patient safety laws and regulations where the drugs are dispensed from or where they are offered to be shipped to. For example: •Selling prescription-only medicines without a
Slide 11: Fundamentally About Public Health
Fundamentally About Public Health Accessible at “1buydnp.com” LegitScript 11 | Pharmaceutical Guidelines Overview |
Slide 12: How can we tell who is legitimate?
How can we tell who is legitimate? Three primary (but not the only!) rules applicable globally* 1. An entity selling prescription drugs usually must be licensed as a pharmacy or otherwise recognized by the jurisdiction where they ship drugs to. 2. Shipping drugs from one country directly to an indiv
Slide 13: It's a Global Internet! The Basic Rule
It’s a Global Internet! The Basic Rule: Even if the pharmacy merchant is in a different country than the cardholder, the merchant must comply with the laws and regulations in the cardholder’s country, just as if the merchant were physically located in that country and subject to that jurisdiction’s
Slide 14: 1. Prescription Requirement
1. Prescription Requirement Prescription-only: Medicines, treatments, medical devices or other healthcare products that the relevant healthcare authorities have determined require medical supervision to be used safely and effectively. Pharmacy-only healthcare product: Do not necessarily require a pr
Slide 15: 2. Pharmacy Licensure
2. Pharmacy Licensure • If offering to ship drugs into a particular jurisdiction, a dispensing pharmacy must usually be licensed in that jurisdiction. • Some jurisdictions have reciprocity or other recognition for a foreign pharmacy, but this an infrequent exception to the rule. • Merely because a m
Slide 16: But hey, it's Canadian!
But hey, it’s Canadian! Prescription drugs imported from a supplier (including a pharmacy) in one country directly to a patient in another country are usually considered unapproved for sale. Thus, Internet pharmacies shipping drugs from a supplier in one country to patients from another country usua
Slide 17: 3. Violating Drug Importation Rules
3. Violating Drug Importation Rules Prescription drugs imported from a supplier (including a pharmacy) in one country directly to a patient in another country are usually considered unapproved for sale. Thus, Internet pharmacies shipping drugs from a supplier in one country to patients from another
Slide 18: RECAP: Core Principles of Internet Pharmacy Legitimacy
RECAP: Core Principles of Internet Pharmacy Legitimacy 1. Websites that allow customers to acquire a prescription drug based solely on an online form or questionnaire are usually illegal (even if the drug is not a controlled substance). 2. Pharmacies usually must be licensed or otherwise legally rec
Slide 19: Watch Out For:
Watch Out For: Since there are high levels of profitability associated with illicit medicine sales online, rogue Internet pharmacy merchants are highly motivated to falsely appear legitimate to acquirers Watch out for: • Internet Pharmacy Affiliate Marketing Networks • Geo-targeting • “Comfort Lette
Slide 20: Questions?
Questions? The following questions were submitted by webinar attendees Q: I'm a US acquirer and I've registered all of my pharmacy merchants with Visa per the US requirement. Do I need to worry about those registered merchants potentially being rogue and if so what should I do or what can Visa do to
Slide 21: Questions?
Questions? The following questions were submitted by webinar attendees Q: If a pharmacy is taking orders through any channel, but processing via web terminal, is that an Online pharmacy? A: Generally, yes. If a customer is advertised to in some method (email, phone call, etc.) but directed to a webs
Slide 22: Questions?
Questions? The following questions were submitted by webinar attendees Q: What are the guidelines for nutraceutical sales? A: Please contact LegitScript for more details, but we do maintain a publicly available list of unproved and rogue products in this space. One core aspect is that a nutraceutica
Slide 23: Questions?
Questions? The following questions were submitted by webinar attendees Q: Do the same core principles of internet Pharmacy Legitimacy apply to an animal pharmacy? A: Yes, as pet medications have the same prescription guidelines as human medications. Q: If I have a portfolio of merchants that I’m not
Slide 24: Additional Questions?
Additional Questions? If you have and additional questions please contact: Elizabeth Scofield elscofie@visa.com To validate a current or potential pharmacy merchant www.legitscript.com 24 | Pharmaceutical Guidelines Overview | Visa Public
Slide 25: Thank you
Thank you Visa Public
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