In the world of payment processing, the MATCH list (Member Alert to Control High-Risk Merchants) is one of the most significant obstacles for businesses flagged as high-risk. If your business is placed on this list, it can severely limit your ability to accept card payments, affecting your operations and revenue. But what exactly is this list, how do businesses get on it, and more importantly, how can they get off it? Here we will explore all aspects of the certain MATCH List, including reasons for being placed on it, the implications, how to check if you’re on the list, and actionable steps to get removed from it.
What Is the MATCH List?
This is also known as the Mastercard MATCH List or Terminated Merchant File (TMF), is a database maintained by Mastercard that contains information on businesses considered high-risk. Acquiring banks and payment processors refer to this list to evaluate whether they should provide merchant accounts to businesses seeking to accept card payments. The MATCH List is designed to protect payment processors from merchants with a history of risky behavior, such as high chargeback rates, fraud, or non-compliance with payment processing rules.
Being placed on a certain list is detrimental because it restricts your ability to obtain merchant accounts, which are necessary for accepting credit card payments. Once listed, most acquiring banks will refuse to provide payment processing services, or they will do so at higher fees and under stricter conditions.
How Does a Merchant End Up on the MATCH List?
Mastercard provides specific codes, each representing a different reason why a merchant is placed on the MATCH List. Some of the most common reasons include:
- Excessive Chargebacks: A business with a high number of chargebacks may be flagged. Chargebacks, which occur when customers dispute a transaction and request their money back, suggest that a business may have poor customer service or be engaging in fraudulent behavior.
- Fraudulent Activity: Merchants found engaging in fraudulent transactions, such as selling counterfeit products or committing payment fraud, can be placed on the list immediately.
- PCI Non-Compliance: The Payment Card Industry Data Security Standard (PCI DSS) sets rules for handling cardholder information securely. Failing to comply with these standards can lead to a business being listed.
- Bankruptcy: Filing for bankruptcy signals financial instability, and payment processors may report this, leading to certain lists.
- Violation of Payment Processor Terms: Breaching the terms of service with a payment processor, such as improper handling of transactions or non-disclosure of high-risk activities, can lead to being added to the list.
- Illegal Transactions: Engaging in illegal activities, such as selling prohibited goods or services, results in such listing. This could include anything from illegal gambling to unlicensed pharmaceuticals.
Consequences of Being on the MATCH List:
Being on the MATCH List has serious consequences for businesses:
- Difficulty Obtaining Merchant Accounts: Acquiring banks and payment processors typically refuse to open accounts for businesses on the list. Those that do may offer unfavorable terms, such as higher fees and stricter conditions.
- High Transaction Fees: Businesses may be forced to work with high-risk payment processors, which often charge more for their services due to the increased risk.
- Damage to Reputation: Being placed on the list can damage a business’s reputation, signaling financial instability or unethical practices to banks, customers, and partners.
How to Check if You're on the MATCH List?
Unlike some credit reports, businesses don’t have direct access to such lists. You usually find out when a payment processor declines your application and informs you that your business is listed. If you’re unsure, you can ask a payment processor to check on your behalf. Additionally, if you discover negative marks on your report, consider exploring credit repair options to help improve your standing and increase your chances of approval in the future.
How to Get Off the List?
Once placed on the list, getting off it is difficult but not impossible. Here’s what you can do:
- Identify the Reason: Understand the reason for your listing. The acquiring bank that placed you on the MATCH List must provide a specific reason code, which will give your insight into what caused your business to be flagged.
- Contact the Acquiring Bank: Once you know why you’re listed, contact the acquiring bank that placed you on the MATCH List. If you’ve corrected the issue (e.g., reduced chargebacks or become PCI compliant), you can request that the bank notify Mastercard to remove you from the list.
- Provide Documentation: To support your case for removal, provide documentation that proves the issue has been resolved, such as proof of PCI compliance or reduced chargeback ratios.
- Work with a High-Risk Processor: In the meantime, you may need to work with a high-risk payment processor. While fees will be higher, these processors specialize in businesses that face challenges in the traditional processing landscape.
- Wait for Automatic Removal: The list records typically expire after five years. If you are unable to have your business removed through negotiation or corrections, you may need to wait until this period ends.
What Else Can You Do MATCH List?
Even if you cannot get off the list, you still have options. Some acquiring banks specialize in high-risk merchant accounts, which are tailored for businesses prone to chargebacks or other issues. While not guaranteed, high-risk processors may be willing to work with businesses on the list. If you cannot get removed from the MATCH List, exploring high-risk merchant accounts can help you continue accepting payments.
How Payment Pro Can Help?
If your business is on this MATCH List, Payment Pro can offer specialized services designed to help high-risk merchants continue accepting payments. They provide tailored payment processing solutions for businesses facing difficulties with traditional banks and processors due to a listing. With Payment Pro, you can continue processing transactions while you work to resolve the issues that got you placed on the list.
Other Terminology You Should Know:
While researching the list, you may come across terms that sound similar but refer to entirely different topics. Let’s briefly address a few:
- Match List Credit Card Processing: This refers to the process in which credit card processors check the list to determine whether a business is eligible to open a merchant account.
- Match List Due: This term is used in the context of businesses wondering when their listing on the list will expire. Typically, businesses are removed from the list after five years unless they can get off sooner by resolving the underlying issues.
- Match List Date: This term refers to the date a merchant was placed on such a list. This is critical when calculating when a business may be eligible for automatic removal.
Conclusion
Being placed on a certain MATCH List is a serious issue for any business that relies on credit card transactions. However, understanding the reason for your listing and taking the right steps can help you get off the list over time. Whether by correcting underlying issues, working with a high-risk processor like Payment Pro, or waiting for the five-year period to end, there are ways to regain control of your payment processing capabilities. By improving your business practices and complying with industry standards, you can prevent future issues with the MATCH List and ensure smoother operations.
