When a merchant whose name appears on the MATCH file merchant list applies for a merchant account through a new financial institution, their application will be flagged. Likely, the new processing bank will turn down the application and deem it as too high risk. The processing bank may choose to contact the institution that added the merchant’s name to the list and inquire about the circumstances that led to the account termination. Using that information, they may choose to accept the merchant’s application, reject it, or offer a conditional acceptance with restrictions.
What kinds of problems can cause a merchant to be listed on the TMF or Match List?
In short, any sort of activity that causes the account holder to appear to be a bad risk. This can include excessive chargebacks, or excessive fraudulent transactions; noncompliance with PCI-DSS (payment card industry data security standards), the compromise of merchant account data; laundering, fraud, or collusion on the part of the account holder, or evidence that he was engaged in illegal transactions; an inability of the merchant to meet financial obligations due to bankruptcy or insolvency; or evidence that the account was opened fraudulently and that the identity on the account was stolen, lastly a merchant can be listed for violation of standards (agreement). Fortunately, there are many simple things you can do to prevent future fraud.
How Accurate is the Terminated Merchant File?
Though the TMF or Match List is managed by MasterCard, individual acquiring banks have the power to add or remove the names of merchants from the database if they have justification. There is little oversight in this process; MasterCard explicitly states in its Security Rules and Procedures that it does not attempt to verify the accuracy of, or basis for, the listing of any merchant on the TMF list, and that the data contained therein may be inaccurate or the circumstances giving rise to a merchant’s inclusion on the list may be under dispute.
How Do I Remove My Name From the TMF or MATCH list?
It can be hard for a merchant to get his or her name off the TMF or Match List, depending on the reason he or she was listed initially – fraud is a particularly difficult hurdle to overcome. The only recourse is to contact the banking institution that listed you in the first place and try to resolve whatever issue led to the termination; only the processing bank that placed you on the TMF has the power to remove your name. Alternatively, if you feel the TMF or Match listing is unfair, there are lawyers who specialize in this niche. Otherwise, your listing will remain active for five years.
Here at Durango Merchant Services we are often able to assist merchants that may be on the TMF or Match List, however each case is unique. Please inquire with us about the processing options for your business.