Mastercard MATCH List & TMF: What They Are and How to Get Removed

Payment processors and acquiring banks have to take on substantial risk when processing payments. Because of this, they use the MATCH list for payment processing. This list includes the names of merchants that are considered riskier. 

While the MATCH list helps acquiring banks make informed decisions about which merchants to work with, it can make life difficult for merchants. Once your name is on the list, you’ll have a hard time setting up a merchant account. By learning the reason code, you can figure out how to get off the MATCH list and review alternative payment solutions.

To learn more about the MATCH list and terminated merchant files, read on.

TL;DR

• The Member Alert to Control High-Risk Merchants (MATCH) list is a collection of merchants that have frequent problems with fraud, chargebacks, and similar issues.
• While the list is managed by Mastercard, it is used by all processors and acquirers to assess risk.
• Each merchant has one or more reason codes for why they are on the list. These codes include things like illegal transactions, chargebacks, and identity theft.
• Once someone is on the list, they remain on it for five years. Then, the name is automatically removed.
• Only the acquirer that added your name is allowed to remove it.
• With some of the reason codes, you can provide documentation or make changes to get the acquirer to remove your name.
• Certain reason codes are essentially non-removable unless they were made in error.
• Payment processors can still work with merchants that are on the list, but they often charge higher fees, require longer contracts, or expect reserve requirements.
• By working with a high-risk merchant account, you can access payment processing services while you work to remove your name from the list.
• To prevent future issues, it’s important to adopt strong chargeback prevention and anti-fraud measures. PCI DSS compliance is also essential for keeping your company’s name off the list.

What Is the MATCH List?

So, what is the MATCH list? And how can you avoid getting placed on it?

The Member Alert to Control High-Risk Merchants (MATCH) list was originally created to help payment processors make informed decisions. High-risk businesses are more likely to experience fraud, chargebacks, and other issues. For the payment processor, this represents a huge, unknown cost.

With the Mastercard MATCH list, there is a database of merchants that have had their payment processing abilities revoked by their processor or acquirer. Once the merchant is on this list, other payment processors can see the merchant’s inclusion and potentially deny their account application. To avoid account denials and processing problems, the merchant needs to get their name removed from the list or find a high-risk merchant account provider to work with instead.

What Is the Difference Between the MATCH List and TMF?

When it comes to the MATCH list and payment processing, you may sometimes hear people talk about TMF. TMF stands for Terminated Merchant File. It was the previous name of the MATCH list, so it is rarely used anymore. You may still see the term TMF credit card processing, but this is no longer an accurate name for it.

What Are Some of the Most Common Reasons for Being on the MATCH List?

As a merchant, there are a few reasons you may be placed on the Mastercard MATCH list. To help you understand how you landed on this list, we’ll dive into the most common reason codes and what they mean.

• 01 (Account Data Compromise): Reason code 01 appears if the cardholder’s data was accessed in some way. While you are also the victim of a data breach, you are still considered responsible for protecting your client’s data.
• 02 (Common Point of Purchase (CPP)): This code is for times when the cardholder’s account information is stolen from your company and then used somewhere else.
• 03 (Laundering): If you are suspected of laundering funds, you may see this code. Money laundering is when you process funds through your business for another business.
• 04 (Excessive Chargebacks): This code is given if you have too many chargebacks. For example, you may be submitted to the MATCH list if you have more than $5,000 in chargebacks in a single month or in excess of 1% of your transactions.
• 05 (Excessive Fraud): Businesses that process 10 or more fraudulent transactions worth at least $5,000 in a month will be placed on the Mastercard MATCH list. Additionally, you’ll see this code if you have a fraud-to-sales ratio of 8% or more.
• 07 (Fraud Conviction): This code appears if the principal owner or a partner in your business has a fraud conviction.
• 08 (Mastercard Questionable Merchant Audit Program): Mastercard requires businesses to meet a high standard, so you may be added to this program if you don’t. For example, you may be a part of this program if half of your transactions are from customer bust-out accounts, which are accounts created solely to max out the limit and not pay. There are very specific rules for this program, so it’s important to take some time to research why you are included and how you can escape this classification.
• 09 (Bankruptcy/Liquidation/Insolvency): If you are unable to discharge your financial obligations because of a bankruptcy or similar issue, you’ll be given this reason code.
• 10 (Violation of Standards): This code means you violated the card branch’s standards in some way, such as processing prohibited transactions.
• 11 (Merchant Collusion): When you see this code, it means Mastercard suspects fraudulent collusion.
• 12 (PCI DSS Noncompliance): This reason code means your company doesn’t meet Payment Card Industry Data Security Standards (PCI DSS).
• 13 (Illegal Transactions): If you knowingly or unknowingly process illegal transactions, you can be placed on the MATCH list. For instance, you may run an auction site that unintentionally auctions off an illegal drug.
• 14 (Identity Theft): You’ll see this code if the acquirer suspects that you or another owner may have used identity theft in order to open up a merchant account. 

How Does Being on the MATCH List Impact Your Company’s Payment Processing?

If you’re on the MATCH list for payment processing, it’s because a processor had cause to terminate your merchant agreement. Besides the immediate issue of not having a current payment processor, being on the MATCH list can result in a number of additional consequences. 

Many merchants are unwilling to work with high-risk businesses, which makes it harder to process payments. If you do find a payment processor that will work with high-risk industries, you’ll likely end up paying higher fees. These payment processors have to charge more to balance out the increased risk, so you’ll often have higher transaction fees, setup costs, early termination fees, and chargeback fees. 

Often, merchants will be expected to sign up for longer contracts or set a reserve account. At the very least, there will likely be extra risk monitoring and chargeback prevention requirements.

Although you are on the Mastercard MATCH list, payment processors are still allowed to work with you. However, many mainstream processors avoid high-risk accounts, which can make processing your company’s payments challenging.

Does Each Card Network Have a MATCH List?

When it comes to checking MATCH lists and terminated merchant lists, Mastercard’s list is really the only option available. Visa used to have a similar list, but it was discontinued years ago. Discover and American Express don’t track terminated merchant files either. Instead, the entire industry relies on Mastercard’s MATCH list.

What Is the MATCH List Used For?

The MATCH list is used by payment processors to determine whether a merchant can be given a merchant account. If someone has a high risk level, many processors won’t work with them. In these circumstances, merchants typically have to find a high-risk merchant account provider to process their payments.

This list is primarily used during the onboarding process to decide if the merchant should get an account and to determine potential account restrictions. For example, the payment processor may require a higher cash reserve or a longer contract if the merchant has a high rate of chargebacks. Additionally, the reason codes help payment processors understand why the merchant is on the list.

Before the MATCH list was created, processor hopping was a major issue. Merchants could simply switch to a new processor as soon as they encountered a problem, and the new processor would be unaware of the merchant’s past. Now, processors can easily see if a merchant has experienced issues, so they can make an informed decision.

How Long Do You Stay on the MATCH List?

Unfortunately, it takes five years for your company’s name to get removed from the MATCH list automatically. If you want to find out how to get off the MATCH list before this point, you’ll need to talk to the acquiring bank that added you to the list. The acquirer is the only one that is allowed to remove your name from the list once it has been added.

How To Get off the MATCH List

If you have been added to the MATCH list, there are a few steps you can take to figure out how to get off the MATCH list. Once you are off the list, it’s essential to adopt advanced chargeback and fraud detection techniques so that you don’t end up on the MATCH list again in the future. 

1. Identify Your MATCH Reason Code

The first step is figuring out why you were placed on the MATCH list to start with. This matters because it will inform you of what you need to do to get your name removed. For example, you can address reason code 12 by becoming PCI DSS compliant. 

It’s always a good idea to check the reason code and investigate. Sometimes, acquirers list merchants in error. If you were added to the list by mistake, there is a strong likelihood that you’ll be able to convince the acquirer to remove your name.

2. Understand the Cause

Once you know what the code is, take time to understand why it happened. Then, do your best to resolve the situation. This may involve responding to fraud alerts, dealing with chargebacks, or updating your PCI DSS compliance. 

However, it’s also important to note that some reason codes are impossible to remove. In these circumstances, the acquirer can only take your name off of the list if you were added in error. 

3. Contact the Acquirer

Once you understand the MATCH list and payment processing issues, gather your documentation together. With the right documentation, you can appeal the decision. Typically, each acquirer will have their own process to go through.

4. Explore Alternative Payment Solutions

Unfortunately, there are situations where you cannot get your name removed from the MATCH list. If this happens, you’ll need to explore alternative payment solutions. 

With a high-risk payment processor, you can continue processing payments through a new merchant account. Each high-risk processor merchant account provider has different rules, fees, and contract lengths, so take your time researching each provider.

5. Gather Documentation for a High-Risk Merchant Account

To set up your new account, you’ll need to gather together the right documentation. You’ll typically need your personal identification, business license, operating agreement, bank statements, processing statements, profit and loss statements, and balance sheets. However, document requirements can vary, so check with the merchant account provider in advance.

6. Implement Chargeback Prevention Measures

To avoid future chargebacks, there are a few essential steps you should take.

• Keep your chargeback rate low. If your account provider offers chargeback prevention tools, use them.
• Offer excellent customer service and easy returns, so customers have alternatives to chargebacks.
• Follow regional laws.
• Require card security codes and other verification measures to prevent fraudulent transactions.
• Use clear product and billing descriptors.
• Make sure your business name on credit card statements is a name your customers will recognize.
• Avoid using misleading sales tactics or advertisements.
• Ensure you’re PCI DSS compliant.
• Never process prohibited or illegal transactions.

How PayCompass Can Help With Your MATCH List Designation

Whether you are struggling to get off the MATCH list or need to find a high-risk payment processor, PayCompass can help you review your options. Once you are on the MATCH list, it can take five years for your name to be removed. The only exception is if you can convince your acquiring bank to remove your name from the list.

As you wait for your name to be removed, it’s essential to be proactive about resolving the reason why you were included on the list. PayCompass can help you become PCI DSS compliant. Many payment processors are also stricter about documentation requirements for merchants that are on the MATCH list. At PayCompass, we can help you navigate and prepare all of the documentation that you will need for the underwriting process.

Through our advanced chargeback alerts and fraud detection tools, we can help you prevent future issues from happening. Our team of payment processing experts can also help you understand your reason code, so you can know the best steps for avoiding the MATCH list in the future.

Final Thoughts

While being placed on the MATCH list can inspire panic, there are steps you can take to have your name removed from the list. The only party able to remove your name is the acquiring bank. Once you have looked up the reason code for your inclusion, you need to reach out to the acquirer to determine what you can do to solve the problem.

Unfortunately, some MATCH list reason codes cannot be removed by anyone. In these circumstances, you’ll need to wait five years for your company’s name to be automatically removed. In the interim, a high-risk merchant account provider can help you set up a new account and continue to process payments. You’ll also want to adopt preventative measures so that you aren’t added to the list again in the future.

If you need to find out more about the MATCH list and payment processing, we can help. Give our high-risk merchant account experts a call today to learn more about your options.