Some consumers who order medication from safe international pharmacies are finding themselves unable to use their VISA credit cards. We hope that doesn’t interfere with their ability to access safe and affordable medication. What’s going on?
Essentially, in taking actions to stop rogue online pharmacies from selling medication, VISA’s online pharmacy policy ends up discriminating against consumers seeking affordable medication from safe international online pharmacies. It appears that VISA has adopted the online pharmacy worldview of LegitScript, a verification service that categorizes safe international online pharmacies as “unapproved” (but not “rogue”) and teams up with big pharmaceutical companies and U.S. chain pharmacies! VISA’s policy may set a precedent for more credit card payment processors; discontinued service to rogue pharmacy websites is good, but if service is discontinued to safe international online pharmacies, including ones approved by PharmacyChecker.com, that’s bad.
The policy, as articulated by VISA in cooperation with LegitScript, holds that an international online pharmacy can be operating safely, ethically, and legally where they operate but still be denied a merchant account for processing VISA card transactions. The main reason boils down to the technical federal restrictions on personal drug importation in the U.S. While millions do import medicine for their own use, under most circumstances, the FDA communicates that it’s not technically legal for them to do so. I write “technically” illegal because the federal government has never taken criminal enforcement actions against individuals for importing small quantities of prescription medication for their own use. About five million Americans buy medication for their own use from a foreign source each year due to high domestic drug prices. VISA is trying to make it harder by telling its merchant bank clients to cut service to pharmacies outside the U.S. that sell to Americans.
The Canadian International Pharmacy Association (CIPA), a trade association of Canadian pharmacies in the business of selling prescription medication internationally, recommends that Americans use personal checks instead of credit cards. That sounds like a reasonable idea to me. Good old-fashioned checks of course don’t carry the heavy transaction fees of credit cards. Most people end up spending too much on credit card late fees anyway.
How do consumers view VISA’s policy? I’d like to share with you an email from a retired but still licensed physician in Florida, Michael M. Michaels, M.D.:
I ordered medication from [NAME OF ONLINE PHARMACY REDACTED] and offered to pay using a visa card. I was told “your government has prohibited visa credit cards from payments to Canadian pharmacies”…
Does your organization know anything about this? I also read on RxRights.com that our government is planning to “block” websites of Canadian pharmacies. This is stuff that is reminiscent of China or North Korea!! Is any of this legal and if so, is anything being done to prevent the obscene “lobbying” power of big pharma? Any comment from you would be appreciated.
Admittedly, I was pleased to read this intelligent outrage, but there are important caveats about the message that require discussion and clarification. I don’t believe the U.S. government has actually told VISA that its cards cannot be used to process prescription drug purchases from non-U.S. online pharmacies that sell to Americans, whether they are rogue or safe (but I’m not sure of this). More likely, we’re bearing witness to the neo-censorship efforts of what are referred to as “voluntary agreements” among private companies to self-censor. If you’re having trouble sleeping, you can read about all of this in my past congressional testimony. Basically, the Obama administration, through the White House Office of the Intellectual Property Enforcement Coordinator, leaned on Internet companies and other online “gatekeepers,” such as credit card companies and domain registrars, to voluntarily take on the problem of rogue online pharmacies, which they have lumped together with safe international online pharmacies.
Is the government actually planning to block foreign websites that sell medication to the U.S.? The drug companies would like that, and they do spend a couple hundred million bucks a year on lobbying — so you never know. And remember, the FDA has to do things to protect you (yes, even you diehard libertarians out there), such as warning about and shutting down clearly dangerous pharmacy websites. Had the Stop Online Piracy Act (SOPA) passed, Pharma’s nefarious goals might have been achieved. The answer to the question, then, is “kind of” but it’s impossible to say how far they would go to shutdown safe access to affordable medication, knowing that there are bad public health ramifications for doing so.
Are VISA’s actions legal? I’m sorry to say it, but they probably are. I believe VISA can do business with, or not do business with, whomever they want. Due to the technical federal restrictions on personal drug importation VISA can rationalize it.
Why would VISA do this if they don’t “have to”? When it comes to “rogue” sites – they might feel basic human responsibility to do the right thing. How about safe international online pharmacies? Because there are so few safe international online pharmacies, relative to the number of rogues, and the government and drug companies are not too happy about personal drug importation, VISA probably thinks – “what the hell, let’s just keep this simple to avoid potential problems.” The victim is the American consumer.
Finally, Dr. Michaels asks if there’s anything we can do about it? I’m happy to say YES! Keep working with RxRights to let our elected officials know that your votes will be swayed by this issue and they must help maximize access, online and off, to safe and affordable medication!
Given the action by VISA, I’d like to propose that we fight back: Replace our VISA cards with Mastercard, American Express, or Discover.
Also, let our Senators and Representatives know how we feel about this. Unfortunately, they’re shielded from this because their healthcare and drugs are paid by us. That is, they don’t have to pay for anything, so they don’t care about their constituents.
Bitcoin, Bitcoin, Bitcoin.
i just discovered this very problematic issue recently, and today did ditch/exchange my Visa for another agent …
I shall forward this net page to administrators of Bank of America, who seemed surprised that this matter mattered!
They were very gracious and helpful in ‘prioritizing’ my switch to MasterCard on my existing bank account.
Thanks, people, for opening my eyes!!
This is bullshit the online Pharmacy’s are sometimes the only way and now this payment of only an echeck is insane its needs to be stopped,people really need these meds.Again this needs to stop.
Thanks VISA. I just got my new MasterCard and will use it exclusively henceforth for all my card purchases.
You need to be taught a lesson: fascist tactics by ALEC members including U.S. pharma will not go unpunished.
Interesting article on Visa. I have been buying from Canada for several years & recently noticed my (BofA) VISA card didn’t work so I used a different card w/o any problem. I didn’t think that much about it. Now! I think I’ll just set this card aside and use another card for all my purchases. Visa can shut me down in Canada & I’ll stop using them here. A win win for both of us.
Keep up the good work.
Unfortunately MasterCard has instituted the same policy. My online pharmacy now only accepts money orders or personal checks.
CIPA certified Canadian online pharmacies take personal cheques, bank cheques, echeques, American Express and international money orders. The mailed in options are the least favorite due to the time with the US Postal Service.
Why does visa permit the purchase of many other foreign products that may be more harmful than foreign pharmaceutical products? If one is out of the country (US), visa does not prohibit their purchase.
All about how much Pharma paid Visa to implement the policy.
All about how much Pharma paid Washington to make it legal.
All about bloodsucking the US consumer in desperate need of the drugs.
All about why unregulated healthcare for max profits is unsustainable.
Move on nothing new here…..
Another case of discrimination against the elderly and sick people.
They are the ones which need the medicines. They are the quiet people.They do not demonstrate or cause violent crimes to get attention.
This treatment reminds me of Nazi Germany.
I agree this is bullshit they have there hands in everything Doctors phycologists online drug stores enough is enough they need to leave us people who need these drugs to change and able people to get the medicine they need especially mentally it’s insane
Obama is in cahoots with Big Pharma… Pathetic.
I have been using an on-line drug company for over 10 years. I live in Baja California, expat, no medical insurance in U.S. I have RA and have 2 meds that I HAVE TO TAKE. One of which I can’t get anywhere but on-line and Plaquenil that I can’t get in Mexico. Just yesterday tried to purchase from the on-line pharmacy with my VISA card – CANNOT. Had to resort to a wire transfer at an additional $30 for the service. WTF!
Will a pre-paid credit card work, one you put cash on? Similar to a Visa/MasterCard/AMEX gift card.
Hi Eric, Thanks for joining the conversation. That’s up to whichever online pharmacy you decide to use. You’ll have to consult their payment policy.
Government, GET OUT OF MY BUSINESS OR LOSE IT!! Are we becoming a police state?
I have to use my HSA issued Mastercard to draw from my account if i use my AMEX and repay from my HSA i`ll end up getting audited at tax time .I buy a prescription that i need in tthe States it cost me 350.00 per month from Canada it is 45.00 what a rip the rich get richer .
This explains a lot. A few years ago I began using a Canadian on-line pharmacy for my maintennce meds. For the first few order I was able to use my Visa card to pay for the meds but after a few cycles I was informed that Visa was no longer accepted. When I asked why this was I was told “They were looking for a merchant bank [i.e. account] to process the payments. I didn’t understand it at the time,now I do. Thans for this very informative article.
Yes, I would like to work with RxRights but the link [text reads RxRight] in the last paragraph is broken.
Hi Richard –
Thanks for your important comment.
Sadly, the drug companies have lobbied successfully to make it difficult for Americans to use their credit cards to buy more affordable medications internationally.
RxRights shut down a few years back. I started Prescription Justice, a non-profit organization focused on lowering drug prices in America. https://prescriptionjustice.org/.
If you want to contact me, here’s my linked in profile: https://www.linkedin.com/in/gabriellevitt/.
Sincerely,
Gabe