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Digg It - Credit Card Balance Transfer Fees
The idea of a balance transfer deal was introduced to the UK in the year 2000 by innovative online bank Egg plc, who offered customers a bait of 0% inter
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
est for six months on balances they transferred from another credit card.
The feature was an instant hit, and more and more card issuers began to offer
The feature was an instant hit, and more and more card issuers began to offer
; 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
similar deals as competition for customers grew more intense. Before long, it seemed that every card available had 0% deals of ever-increasing lengths.
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
It didn't take long for savvy cardholders to spot a pretty major flaw in the credit industry's thinking though. With so many cards offering 0% deals, wha
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
t's to stop people from becoming serial balance transferers, moving their debt to a new card as the 0% period expires? And so the game of credit card sur
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
fing began.
People began to systematically switch their balances to card after card, and if they were organised enough to make sure their balance was mo
People began to systematically switch their balances to card after card, and if they were organised enough to make sure their balance was mo
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
ved off a card before the interest charges kicked in, then they could avoid paying interest on their debt for as long as there were new cards available t
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
o apply for. In effect, the credit card industry was collectively extending millions of pounds of interest free credit over an indefinite period - not a
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
situation they either intended or appreciated.
People could take advantages of balance transfers in other ways, too. Some cards allowed a transfer to a
People could take advantages of balance transfers in other ways, too. Some cards allowed a transfer to a
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
bank account rather than another credit card. It was therefore possible to transfer the entire credit limit of a new card to a high interest savings acco
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
nt, leave it there for the length of the 0% deal period, and then clear the card balance and pocket the interest earnings.
All this added up to a major
All this added up to a major
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
headache for credit card issuers - the tables had been turned, and their customers were now costing millions of pounds every month to support. This had t
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
o change, and so it fell to Egg plc to again introduce a new card feature : the balance transfer fee.
In May 2005, Egg announced that all balance transf
In May 2005, Egg announced that all balance transf
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
ers would now attract a 'handling fee' of 2% of the amount transferred. The charge would be capped at ?50. Other card issuers quickly followed suit, and
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
now most balance transfer deals have such a charge.
So what does this mean for credit card users?
Firstly, before applying for a new balance transfer c
So what does this mean for credit card users?
Firstly, before applying for a new balance transfer c
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
ard, check in the small print whether or not a fee will be imposed. This should be made clear in all advertisements and on the application form, but the
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
credit card industry has a history of subtly hiding unattractive features while accentuating the eye-catching ones, so pay careful attention.
If there i
If there i
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
s a fee, make sure that there's an upper limit mentioned. While the maximum ?50 fee may still, depending on the size of your balance, make it worthwhile
.
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
to take advantage of the offer, cards with no maximum charge are much less attractive.
To sum up, the balance transfer game isn't as straightforward as
To sum up, the balance transfer game isn't as straightforward as
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
it once was. There are still ways to save money by taking the maximum advantage of the offers available, but cardholders need to be more wary than before
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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