Finding yourself on the terminated merchant list is nothing short of stressful—to say the least. This is especially true if you don’t know what ‘terminated merchant file’ even means, what you did to end up there, and how to get off the list.
Not to mention all the business-related issues getting on this list can bring about, with the potential to wreak havoc on your future business ventures if you were to ever open another account or try to use the same one (hint: you can’t).
Even if you do get back on your feet and off the list, you’ll likely end up having trouble finding a reliable payment processor who’d be willing to partner up with you.
However, there are ways to avoid the TMF completely and there are also strategies to get removed from the list if your business has been terminated already.
We’ve created this guide to provide you with all the how’s and why’s around the terminated merchant file. Here’s what to know.
What is the Terminated Merchant File?
The terminated merchant file is an older term for what is now known as the MATCH list (Member Alert to Control High-Risk Merchants).
It’s a database established by one of the biggest card networks in the world, Mastercard, with the purpose of flagging merchants with high rates of fraud, chargebacks, or non-compliance, among other malpractices.
The participation in keeping up the MATCH list is mandatory for acquirers and licensed processors working with Mastercard’s card scheme. Every financial institution involved with the card network is required to consult the list before onboarding new businesses and report merchants if there’s evidence of them violating Mastercard’s terms and conditions.
How Do Acquirers Use the MATCH System?
Acquiring banks and other payment service providers use the MATCH list to help them assess the risks of any business looking to obtain their services. In fact, only certified financial institutions can actually access the data in question, so it can be quite difficult to figure out whether your business is on the list and why it might be there.
The list itself helps acquirers avoid approving merchants that pose significant financial risks. Because of that, the MATCH list plays a big role in preventing fraud, reducing risks, and the whole onboarding process for acquiring banks.
MATCH Reason Code List
As mentioned above, the MATCH list is reliant on the MATCH reason code list. The list consists of 14 main reason codes and 4 extra ones.
Each of the codes serves as an explanation of a supposed violation. The primary codes vary from merchant collusion to illegal transactions and more.
The additional codes, however, are meant for merchants who have either been associated with illegal transactions or those whose violations haven’t been 100% determined yet.
Understanding these codes as a high-risk merchant is important, especially if you own a high-risk business. A clear understanding of the set reason codes can help you address and resolve any issues promptly and appropriately.
💡 View our complete guide to the Mastercard MATCH List. It includes helpful information about different codes, as well as other tips about how to get removed from the list (although we’ll cover those briefly here, too!).
Consequences of Being a TMF-Listed Merchant
Typically, a business that’s been MATCH’ed has a hard time securing new merchant accounts as processors simply aren’t willing to take on the added responsibilities and risks.
That’s why it’s highly likely you’ll be facing countless rejection as a TMF merchant trying to start a new business.
In the long-term, businesses that have been a part of the notorious list often carry around a reputation that’s hard to get rid of even after getting off the list and improving their payment practices.
While these consequences might not seem like a big deal, acquirers look at merchants with a “stained” background differently and often scrutinize them for it.
How to Get Removed from the TMF List
Getting off the TMF list is hard, to be honest. However, it also depends, as there are various ways you can end up on the list—some less ‘severe’ or ‘serious’ as others.
Where do you start?
Firstly, if you’re already a part of the list, you should try to figure out how you even landed on it. This is really the only way to know what your next step should be.
If you're on the MATCH list and don't know why, we always suggesting getting in touch with the acquirer who put you on the MATCH list. Once we know why and what, we can figure out what to do from there and what your options are, whether that's a simple appeal because it was a mistake or another more complex plan of action.
Assuming you were able to figure out how you ended up on the MATCH list in the first place, the next step will be to gather documentation to prove that your business:
- Operates legally
- Adheres to the required standards
- Has addressed any issues that may have been the reason you got to be a part of the list in the first place
Avoid Getting MATCH’ed in the First Place
Our best tip for merchants is to take the necessary measures to avoid getting on the list in the first place!
Be smart, and be cautious of the risks in your industry and take precautionary measures to keep as far away from the list as possible.
The easiest way to do this is simple: maintain good payment practices.
This includes operating according to the law, staying compliant, and remaining diligent in your business ventures.
Monitoring chargebacks and utilizing other modern fraud prevention tools will also help you stay off the list and on the good side of acquirers (and Mastercard).
Some other tips our high-risk experts always suggest include:
- Open communication with your service providers
- Multi-layered security measures
- Straightforwardness with your own customers
You can get TMF'ed more than once, but you can also get removed multiple times. We've seen this with merchants with high levels of chargebacks, for example, which is why it's so important to ensure you're doing everything you can to stay compliant, reduce chargebacks, and keep your merchant account in good standing.
💡 At FastoPayments, we provide our merchants with a PCI DSS self assessment questionnaire that’ll help you ensure your business is compliant. Contact us for the questionnaire.
Stay Off the MATCH List with FastoPayments
Don’t leave the livelihood of your business in the hands of a payment processing partner who doesn’t help protect you.
Work with FastoPayments instead. Get a free, no-obligation quote for high-risk merchant accounts and payment processing services.
We’ll review your business information and get back to you ASAP.
