One of the serious consequences merchants face when they have excessive chargebacks is having their account terminated and being added to the Member Alert to Control High-Risk Merchants (MATCH) list. The MATCH list also called the Terminated Merchant File (TMF), is a database containing a list of merchants whose payment processing accounts have been revoked by other payment processors and acquirers.
Unfortunately, if you’re on the TMF or terminated merchant file list, you may have difficulties getting a merchant account from other providers as processors often refer to the MATCH list when deciding whether to approve or deny your merchant account application.
So, what can you do to get off the list?
What Is a MATCH or TMF list?
The MATCH list, which was previously referred to as the TMF match, is a database containing a record of merchants who have had their merchant accounts terminated by other processors and financial institutions because of having a high level of risk. Having excessive chargebacks is the most common reason merchants are added to the list. Other common reasons why merchants find themselves on the list include:
- Non-compliance
- Illegal transactions or business activities
- Fraud cases
- Identity theft
- Bankruptcy
- Money laundering
- Violation of standards.
The TMF merchant account list compiled by MasterCard is used by acquiring financial institutions to determine the merchants they should or shouldn’t do business with. Businesses that are listed on the MATCH list often have difficulties opening new merchant accounts as most acquirers will be unwilling to work with them. Unfortunately, most merchants only get to know that they’re on the MasterCard MATCH list when their merchant account application gets rejected, as MasterCard has no formal way of letting merchants know they are listed on a high-risk merchant list.
Is It Possible to Get a Merchant Account if You’re on the MATCH List?
Don’t know how to check match list? How to get off from there? No worries! Yes, you can still get a merchant account if you’re on the MATCH list. Most acquirers and processors that are willing to offer MATCH list credit card processing solutions are those that provide high-risk accounts. This is because being on the MATCH list signifies that you’re a risky business. So, if you’re on the MATCH list and you need a merchant account, you can get a merchant matching in the form of a high-risk processor. The good thing about getting a high-risk merchant account is that you’ll continue processing credit card payments, but you should be aware that this account comes with higher processing fees. Also, TMF merchants who provide high-risk accounts will require you to have a reserve account.
Additionally, getting a merchant account while on the terminated merchant file list will also depend on why you’re on the list and for how long you’ve been listed. For instance, if you’ve been added due to PCI non-compliance, you can easily get off the list by becoming compliant. Similarly, if you were added to the list by mistake, your acquirer can rectify this by informing MasterCard.
Notably, an entry on the TMF merchant account list expires in five years. This means that if you’ve been on the list for a few years and you were able to address the issues that got you listed in the first place, you can get a new merchant account after five years. Failure to address the issues that led you to be listed can lead to the closure of other merchant accounts and also result in additional MATCH entries. That is why merchants are advised to quickly rectify the issues that led them to be listed in the first place.
Terminated Merchant File (TMF), How To Find out If On?
- Choose a Reputable Payment Processor: Before getting listed to terminated merchant file search, It is always a good idea to work with a payment processor that is regulated, licensed and has a solid security and compliance history.
- Follow Your Processor’s Guidelines: Keep in mind, that payment processors are subject to certain rules and regulations, which merchants must abide by. Furthermore, For any business authenticity acquainting themselves with these rules and paying close attention to them.
- Safeguarding your personal information: Strong security measures must be put in place to safeguard businesses’ own client data and payment information. Using encryption, changing your software frequently, and creating strong passwords are all part of the process of adding layers of protection.
- Monitor your account: Any questionable transactions should be investigated further by reviewing account activity regularly. If during the examination, you find anything out of the ordinary, you should notify the payment processor right away to avoid getting into a TMF match.
You can assist make sure that your company is functioning legally and safely when processing payments by adhering to some general guidelines.
How Do Merchants Get Off the List?
Once a merchant is listed on the MATCH list, they’re prohibited from accepting and processing credit cards for five years. As mentioned before, depending on the reasons why you were listed, you may be able to get off the list before the end of the five years. However, most merchants who are on the list have to wait for five years before they can be free to process credit card payments. Getting listed also means you’ll have difficulty getting a payment processor to work with you. Based on the dire consequences that come with being listed, the best thing merchants can do is stay off the list. Get to learn of all the reasons that can put you on the list and avoid them.
Alternative Payment Options for Merchants on the MATCH List
Are you on the TMF list and wondering what forms of payment you can accept other than credit cards? Well, you have a few options, as explained below.
- Cash – Being on the MATCH doesn’t stop you from accepting cash payments. However, this could limit the growth of your business as most customers prefer to make credit card payments.
- eChecks – eChecks payments don’t require having a merchant account. The funds get deposited directly into your account. eChecks and ACH payments are particularly suitable for businesses dealing with subscription or recurring forms of payments.
- Cryptocurrency – Cryptocurrency payments are directly deposited into your crypto wallet. That means that, just like eChecks, you don’t need a payment processor to accept cryptocurrency funds. The downside is that not many people use crypto as a form of payment. Also, cryptocurrencies are more volatile than dollars and other currency forms.
- Wallet apps – Mobile wallet apps, such as Venmo, Google Pay, and Samsung Pay, are suitable for peer-to-peer payments. Money exchange is possible as long as your customers are using the same service as you.
How to Avoid Being on the TMF?
There are many reasons why merchants are put on the MATCH list. When a merchant is listed, they’re paired with the reason why they are on the list. Most merchants and payment processors know these reasons that are differently coded. The best way to avoid being listed is to understand the reasons and come up with strategies to avoid them.
- For instance, the most common reason why most merchants get listed is due to high chargebacks and fraud rates. To avoid a high chargeback ratio, merchants can use chargeback management strategies. Fraudulent purchases can also be prevented by fraud prevention tools.
- Merchants should also be PCI compliant and avoid bad and unsafe business practices. Also, merchants that run businesses that are categorized as high-risk should partner with high-risk merchant account providers.
- Such providers understand the unique needs of high-risk businesses and have merchant products that are tailored to suit these needs. Also, such providers have strategies to ensure compliance and prevent high fraud and chargeback ratios.
- Notably, if you’re wondering whether your business is on the MasterCard MATCH list, you can always ask your payment processor or acquiring bank to check for your business name on the list. If you believe that you’ve been added to the list by mistake, you should talk to the acquiring bank that added you to the list so that they can get you off the list.
Concluding Some Last Lines…
If you’re on the Mastercard MATCH list, it isn’t the end of your business. Although most merchant service providers may not be willing to work with you, you can choose to seek the services of a merchant that specializes in offering high-risk merchant accounts. By partnering with a provider such as eMerchant Authority, you’ll get the merchant services you need to process payments despite being on the MATCH list.
How to create a member alert to control high risk merchants?
Member alerts that are set off by particular activities can be a useful way to control high-risk merchants. The measures that can be addressed include putting up high chargebacks linked to tiered actions like information requests or account holds, and communicating them clearly, all while minimizing false positives through data-driven criteria and appeal channels.
What is match list credit card processing?
The MATCH list, formerly known as the Terminated Merchant File (TMF), is a database kept up to date by Mastercard (similar lists are kept for other card networks) that acts as a warning sign for credit card processors that execute high-risk transactions.