MATCH List and Terminated Merchant File (TMF)
Table of Contents
- What is the MATCH List?
- Why am I on the MATCH List?
- How do I get off the MATCH List?
- What is the Impact of Being on the MATCH List?
- Best Practices To Avoid Being On The MATCH List
- Frequently Asked Questions
The MATCH List is a list acquiring banks use to determine high-risk merchants. Provided by Mastercard, the list is an accurate assessment of merchants based on their chargeback ratios and other behaviors.
The MATCH list is not where you want to be. It suggests that your merchant account has been flagged as high-risk due to chargeback activity, which can be a big problem for doing business in the future. The best way to do that is to be fully educated about what criteria can get you placed on the MATCH list, what you can do if you end up on it despite your best efforts, and how to avoid ending up in that scenario.
What is the MATCH List?
While being on the MATCH list won’t cause you to lose any currently active merchant accounts in good standing, the most serious consequence is that you won’t be able to open any new ones while you’re on it. Mastercard’s acquirers are required to consult the list before onboarding a new merchant, and in the vast majority of cases they will flat-out reject any merchant on it. Some payment processors that specialize in handling high-risk accounts will accept these merchants, but they will charge exorbitant rates for their services.
There’s no formal notification process when a merchant is placed on the MATCH list. Most of them only find out they’re on it when they apply for a new account and get rejected.
Why am I on the MATCH List?
You are on the MATCH list because of chargeback activities. Sometimes Mastercard will place you on the list, but more often than not your acquiring bank will do so. If you are a merchant that racks up chargebacks, there is a chance that you could end up on this list.
Additionally, there are several other reasons you could be on this list related to security, illegal activity, bankruptcy, fraud, or non-compliance.
Every merchant on the MATCH List is assigned a reason code that explains why they’re on it:
- 01 Account Data Compromise
- 02 Common Point of Purchase
- 03 Laundering
- 04 Excessive Chargebacks
- 05 Excessive Fraud
- 06 Unused
- 07 Fraud Conviction
- 08 Mastercard Questionable Merchant Audit Program
- 09 Bankruptcy/Liquidation/Insolvency
- 10 Violation of Standards
- 11 Merchant Collusion
- 12 PCI-DSS Non-compliance
- 13 Illegal Transactions
- 14 Identity Theft
Some of these aren’t entirely the merchant’s fault, or completely under their control. Identity theft and account breaches in which the merchant is the victim, for example, fall under reason codes 01, 02, and 14. Other reason codes speak to quite understandable reasons for cutting a merchant off from their credit card processor, like participating in money-laundering schemes, colluding with other merchants to fix prices or otherwise cheat consumers, or failing to comply with important data security regulations.
Then there are the reason codes that apply to merchants who are unable to keep up with the unrelenting barrage of chargebacks and fraud attempts that the eCommerce companies of today are constantly dealing with.
Fraud and chargebacks can hit even the most scrupulous, honest merchants, but there are ways to fight and prevent them.
The MATCH List is just one more reason why keeping up this fight is so important for merchants.
While Mastercard does have clear rules and requirements about what qualifies a merchant for the MATCH List, placement is largely at the discretion of the acquiring banks and is not subject to a great deal of oversight from Mastercard.
What is the Impact of Being on the MATCH List?
If an acquiring bank terminates your merchant account, it is a big red flag for other financial institutions and credit networks. Essentially, you will be labeled a high-risk merchant, and many institutions will not do business with you (or will only do so with exorbitant fees).
Some acquiring banks may decide that you are worth the risk, depending on their risk assessment and the reasons you have for being on the MATCH list.
More importantly, it can be hard to process payments if you are on the MATCH list due to fees or access. If you can't process payments, this can be a big hit to your potential revenue and how you do business.
How do I get off the MATCH List?
The best thing for merchants on the list to do is to be extremely careful about avoiding bad or careless practices that jeopardize any remaining active accounts.
It’s also important to avoid engaging in any activities that might earn them another entry on the list, since that would reset the five-year expiration clock.
If you’re on the list and you absolutely must open a new merchant account, you’re likely to be stuck with one of the very expensive “high risk” processors—all you can do is look for the best provider/terms you can find and try to address the sources of your chargebacks.
Best Practices To Avoid Being On The MATCH List
For the most part, you can avoid the MATCH list by adhering to quality business practices. You want to focus on the things that are under your control as a merchant: maintaining compliance with standards and regulations, taking proactive steps to prevent and reduce fraud, and of course, doing everything you can to stop chargebacks from occurring and fighting them when they cannot be avoided.
Needless to say, we find it heartbreaking when a merchant ends up on the MATCH list for reason 04 (Excessive Chargebacks) when there is much that can be done to learn about the root causes of chargebacks, improve customer service and other business operations that can lead to chargebacks, and fight them so that they get reversed and do not get counted against the merchant.
How Do You Know if You are on the MATCH List?
What does MATCH stand for?
How does Mastercard's MATCH work?
Chargebacks can be one of the easiest ways to get on the MATCH list, but they’re also one of the risk factors that merchants can get under control if they’re willing to make the effort, educate themselves, and work with experts who know how to prevent and fight them.
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