06 Jul

Best Practices for Monitoring Merchants Selling Medical Products

By: Greg Baxley, Marketing Coordinator

 

Counterfeit medical devices, expired products and unapproved prescriptions are dangerous and have, appropriately, gained media exposure following Operation Pangea IX. Many acquirers and their value chain members seek guidance to better understand potential fraud, refine their merchant monitoring methods, and enact best practices to combat potential threats in their portfolio.

 

Reviewing the sale of medical products

All medical and dental products — when unapproved, expired, counterfeit or used without medical supervision — can pose a threat of endangering consumers. Examples include medical and dental machinery, prescriptions, diagnostic testing kits and any accessories, which can be substandard, spurious or falsely labelled. It is imperative that acquirers and payment processors be familiar with their merchants and the products they are selling. This applies to all medical and dental products, even those that may seem to be lower risk, such as condoms and diagnostic testing kits.

 

Acquirers and their value chain members should be having conversations with prospective and existing merchants to ensure (among other controls) that:

  • Merchants are working with reputable distributors of medical and dental products.
  • The medical and dental products being sold are not expired or unapproved for resale.
  • Special scrutiny should apply to new merchants or legacy merchants who newly introduce medical and dental products.

 

Acquirers should also review merchant websites to ensure price points makes sense, and identify any other potential red flags. Ensure that you know the answers to these questions:

  • Are products priced appropriately for the market?
  • Is there any essential information missing from product descriptions?
  • Are items that require a prescription being verified?
  • Are branded products and corresponding trademarks displayed accurately?

 

For additional information, please see our blog E-Commerce Breeding Ground for Counterfeit Medical Devices. If you suspect a merchant of Transaction Laundering, download our complimentary guide Solution Brief: An Organizational Framework for Transaction Laundering Detection to learn more about better positioning your organization against fraud.

 

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