Main Subject - Business

Auto recurring billing enables businesses to automatically bill customers for balance due without sending invoices or obtaining payment information each any every time money is collected. With recurring billing programs businesses can utilize any electronic payment process including direct-debit ACH transactions and credit/debit card transactions. In

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

addition, when businesses convert legacy payment systems to auto-recurring systems utilizing exclusively ACH direct-debit transactions, they typically reduce processing costs by over 50%.

Direct Benefits of Auto Recurring Billing for Businesses include:

Faster payment processing (you get your money faster)
Eliminat

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

Examples of combination products may in

ion of printing, mailing and postage costs

Elimination of defaults and associated collections activities

Streamlined data entry and bookkeeping

Elimination of time consuming trips to the bank

Normalized cash flow

24-48 hour NSF notification

Improved customer service

Ability to accept payments fu

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

nded from credit/debit cards, checking account and savings accounts.

Auto recurring billing systems can be used for both static recurring charges (the same amount each time) or for variable bills. In either case, the recurring billing system saves time and money by obtaining advance authorization from customers to charge their acco

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

unts on a regular frequency and by entering customer information into a database system only once. That data is then accessed whenever payments are processed, and the customer record is updated to reflect each payment collected. The two examples below provide the steps involved in auto recurring billing systems that process static and variable recurr

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

Combination pro

ing charges.

Auto Recurring Billing: Static Amount

Customer data is entered once (including amount, frequency, duration, type of transaction and account information)
Payment Processing System charges/debits account on schedule and counts down payments left (system can also be set for indefinite duration)
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
>
Payment processing system automatically generates an email receipt for the customer and copies the vendor.
Payment Processing System automatically identifies all failed transactions and reconciles with main database.

Auto Recurring Billing: Variable Amount

Customer data resides in external dat

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

abase that calculates payment due

Data, including amount due and account information is exported to .csv file.

.csv file is uploaded to payment processing system as a batch

Payment processing system processes all transactions in batch

Report is generated for all successful and unsuccessful transactions

Report i

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

s exported and then uploaded back into original database, reconciling all open balances with processed payments

Why Your Customers Want Auto Recurring Billing
Auto recurring billing is not only a time and money saver for businesses, but for consumers as well. In fact, many consumers are demanding it from the

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

companies with which they do business—and if you don’t offer it, your customers may select a competitor who does.
NACHA.org, the organization that oversees all electronic payments, reports that 54% of all US households currently use ACH (a direct-debit from a checking or savings account) for at least one monthly bill. Auto recurring billing t

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

akes ACH to the next level—eliminating the need for the customer to actively pay a bill (whether by paper check or online).

Direct Benefits of Auto Recurring Billing for Customers include:

Bills are automatically paid on-time, every-time, even if customers are ill or out of town.
Late payment fees are elim

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

Following aspects would a

inated

Time and expense of writing and mailing checks is eliminated

Customers can keep electronic records of all invoices and receipts

Electronic payments are more secure than paper checks

How to Implement an Auto Recurring Billing Program

Implementing an auto recurring billing progr

dd to the challenges in developing combination products:

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

am is simple.

If you currently accept payments electronically via direct-debit from a checking or savings account, or via credit card, you can likely use your current payment processing system to implement auto recurring billing. The auto recurring program can be implemented in two ways.

Use the auto recurring billing functi

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

onality in your business management software (such as QuickBooks), and export a batch (daily, weekly, monthly) for processing in your payment processing system. This is best for variable payments.

Implement the auto recurring billing function in your payment processing program (note that some companies require an additional charge for this fu

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

nction.) This is best for static payments.

If you don’t already accept electronic payments, you will need to subscribe to this type of service. The simplest way to do this to find a service that will enable you to perform ACH transactions using your current business bank account. This system will enable you to set-up an auto recu

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

rring billing program for your customers where you can direct-debit their checking accounts for outstanding balances. (An additional benefit to this type of system is that you can electronically process any paper checks you still receive from customers who do not elect to participate in the auto recurring billing program.).

Marketi

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

Professional from academic institutions, pharmaceutical industries, health care indust

ng an Auto Recurring Billing Program to Your Customers
Once you have processing capability in place, you can open the auto recurring billing program to your entire customer base. Many consumers know about these programs and are excited to sign-up for the new offering. Others need to be educated about the electronic payment process, and

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

the benefits it can provide them.

Note that you cannot enroll a customer in an auto recurring billing program without explicit permission. Each customer must provide you with bank account information and sign a form giving you permission to debit that account.

Electronicpa

.

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

yments.org provides a wealth of information about electronic payment processing, and also provides materials you can use to educate your customers.

Most organizations introduce auto-recurring billing programs by sending a letter to the customer base, and asking them to sign-up for the program. elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

auto_recurring_billing_letter.pdf" target="_blank">A sample customer letter is available here.

When customers have signed up, you stop mailing them paper invoices, they stop mailing you paper checks and all billing and collections are handled electronically.

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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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