Terminated Merchant File: Everything You Need to Know

A Terminated Merchant File, or TMF, is a list of merchants who have been terminated by a payment processor or bank. This file is maintained by the payment card industry's (PCI) data security standard council.

A TMF can be used to prevent a merchant from opening a new account with another payment processor or bank. This is because the TMF contains information about the merchant's termination, such as the reason for termination and the date of termination.

Merchants who have been terminated may have done something to trigger the termination, such as failing to comply with PCI standards or engaging in suspicious activity.

Curious to learn more? Check out: Payment Processor

The Terminated Merchant File, often referred to as the MATCH List, is a database maintained by Mastercard.

It records merchants whose accounts have been terminated by acquiring banks due to high-risk factors or non-compliance.

Being added to the TMF/MATCH list can significantly impact a business's ability to obtain merchant accounts.

Recommended read: T Mobile Match Play Prize Money

The list serves as a warning to acquiring banks and payment processors about potential risks associated with the merchant.

Reasons for TMF inclusion can include excessive chargebacks, fraudulent activity, or violating card network policies.

Acquirers consider merchants on the TMF to be risky ventures and will normally decline to work with those merchants.

If a merchant is on the list, their application will usually get rejected by acquirers and processors in the Mastercard network.

Most merchants find out they're on the list after their payments suddenly start getting denied, or when they try to apply for a new account and get rejected.

Readers also liked: Bask Bank Rejected

You might be wondering why you're on the Terminated Merchant File list. The truth is, there are specific reasons that lead to a merchant's inclusion on this list. You can be added to the list if you've had a merchant service agreement terminated due to excessive chargebacks, unauthorized or counterfeit transactions, money laundering, or other suspicious activities.

See what others are reading: Apple Pay Later Terminated

Excessive chargebacks are the most common reason for being added to the list, accounting for 9 out of 10 cases. If you've had more than 1% of your total Mastercard transactions result in chargebacks in a single month, with a total amount exceeding $5,000, you might be on the list.

Here are some of the most common reasons for being added to the Terminated Merchant File list:

Keep in mind that the accuracy of the list is not guaranteed, and individual acquiring banks have the power to add or remove merchants from the database without much oversight.

Being added to the Terminated Merchant File (TMF) or MATCH list is not something that happens by chance. Excessive chargebacks are the leading reason, accounting for 9 out of 10 cases.

There are specific reasons that lead to a merchant's inclusion on this list. One of the main reasons is excessive chargebacks, which is defined as exceeding 1% of the total Mastercard transactions in a single month, with a total amount exceeding $5,000.

Other reasons include account data compromise, common point of purchase, laundering, and fraudulent activities. These reasons are outlined in the MATCH reason codes, which are used to determine if a merchant should be added to the MATCH list.

Here are the MATCH reason codes that can lead to a merchant being placed on the TMF:

It's worth noting that the accuracy of the TMF list is not guaranteed, as individual acquiring banks have the power to add or remove merchants from the list without oversight.

Being on a list can be a real headache, especially if it's the Terminated Merchant File (TMF). This database flags merchants for high-risk behavior or non-compliance, making it tough to secure merchant accounts.

The TMF is a serious issue, impacting businesses' ability to accept card payments. It's not just about being on the list, though - it's about understanding what got you there in the first place.

A Merchant Account Provider can help you set up a merchant account and manage transactions, but if you're on the TMF, finding a reliable provider can be a challenge. Swipesum offers solutions to help high-risk businesses manage TMF challenges and find secure, compliant payment processing options.

Voice authorization is a manual phone-based approval process for transactions, often used as a backup for flagged or high-value purchases. This can be a hassle, but it's a necessary step to ensure secure transactions.

A Merchant Services Provider (MSP) offers tools and support for businesses to process card payments, but if you're on the TMF, you may need to find a customized MSP solution that meets your specific needs. Swipesum connects businesses with MSP solutions that optimize payment processing and reduce costs.

SSL (Secure Sockets Layer) is a security protocol that encrypts data between a web server and browser, essential for protecting sensitive information online. This is crucial for e-commerce sites, and Swipesum enhances SSL implementation with full security solutions.

A virtual shopping cart is an online tool that allows users to select and store items for purchase, but if you're on the TMF, you may need to find ways to optimize your payment and checkout solutions. Swipesum enhances virtual shopping carts to drive conversions.

Retrieval is the process by which a bank requests transaction information from a merchant to clarify details, often as a preemptive step before a chargeback. This can be a red flag, but with Swipesum's help, you can manage retrievals effectively and reduce the risk of chargebacks.

For more insights, see: Amex Centurion Lounge Msp

Acquirers use the MATCH system to add information about terminated merchants when circumstances exist, and to check against the MATCH list before signing a merchant agreement. This helps prevent scammers and high-risk businesses from getting approved.

Acquirers are required to use the MATCH system in a specific way: they must add information about terminated merchants when circumstances exist, and they must check against the MATCH list before signing a merchant agreement. This is a crucial step in preventing fraud and ensuring that high-risk businesses don't get approved.

The MATCH list can impact processing abilities for all card brands, not just Mastercard. If a merchant is listed on the MATCH list, they may be denied the ability to process Visa transactions, even if they only violated Mastercard standards.

Here are some key things that acquirers can learn from the MATCH list:

Inclusion on the MATCH list doesn't automatically make you ineligible for an account, but it often does. And while Mastercard maintains the list, inclusion is not limited to Mastercard transactions – being terminated for excessive Visa chargebacks can still get you MATCHed.

Related reading: Sp 500 Inclusion

A MATCH list reason code specifies the violation that has occurred and why you were added to the MATCH list. There are 14 official reason codes provided by Mastercard.

Reason Code 01, Account Data Compromise, occurs when a merchant allows unauthorized access to account data. This can happen directly or indirectly.

Reason Code 04, Excessive Chargebacks, is assigned if a merchant experiences Mastercard chargebacks exceeding 1% of their total Mastercard transaction count in any single month, with a total exceeding $5,000.

Reason Code 05, Excessive Fraud, occurs when a merchant has engaged in fraudulent activities, where the ratio of fraud to sales dollar volume exceeds 8% in a calendar month, including 10 or more fraudulent transactions amounting to $5,000 or more.

Reason Code 10, Violation of Standards, occurs when a merchant is found to be non-compliant with one or more operational standards.

Reason Code 11, Merchant Collusion, occurs when a merchant engages in collusion to commit fraudulent activities.

For your interest: Can You Sue a Company for Hipaa Violation

Reason Code 12, PCI Data Security Standard Noncompliance, occurs when a merchant fails to comply with Payment Card Industry (PCI) Data Security Standard requirements.

Reason Code 13, Illegal Transactions, occurs when a merchant is engaged in illegal transactions.

Reason Code 14, Identity Theft, occurs when an acquirer has reason to believe that the identity of the listed merchant or its principal owner(s) was unlawfully assumed.

Being on the MATCH list can have serious consequences, including being labeled a "high risk" merchant. This can make it difficult to find a processor willing to work with you.

If you're on the MATCH list, you may struggle to find a processor willing to restore your payment processing privileges. Even if you do, you can expect challenges such as a longer-term contract, higher fees, and additional risk monitoring and chargeback management requirements.

Here are the 14 MATCH list reason codes:

Being on the MATCH list can have serious consequences for your business. You'll likely be labeled a "high risk" merchant, which can make it difficult to find a processor willing to work with you.

Some processors may be willing to take on the extra liability, but you can expect to pay higher fees for setup, processing, chargebacks, and early termination. You may also be required to have a longer-term contract and a reserve account.

The MATCH list is managed by Mastercard and is used by acquiring banks to screen potential applicants. If you're on the list, it significantly reduces your chances of being approved for a new account.

Here are some specific reasons why you might be added to the MATCH list:

Excessive chargebacks are a common reason for being added to the MATCH list, accounting for 9 out of 10 cases. If you're on the list, it's essential to address the issues that led to your inclusion and work with the original acquiring bank to resolve them.

Removing your listing from the TMF or MATCH list can be a challenging process, and it's essential to understand that there are only three ways to have your business removed from the MATCH list once it's been added.

Check this out: Lockheed Martin 401k Matching

The first step is to contact the banking institution that listed you in the first place and try to resolve whatever issue led to the termination. This is the only way to potentially have your name removed from the list.

The length of time your listing remains active varies, but by default, a listing in the Terminated Merchant File lasts for five years. This can make it difficult to get approved for a new merchant account during this time.

To have your listing removed, you'll need to contact the processing bank that placed you on the TMF and try to resolve the issue that led to the termination. This may involve providing additional information or documentation to support your case.

If you feel that your listing is unfair, you can consider seeking the help of a lawyer who specializes in this niche. Bank Card Law is one resource that has successfully removed match-listed merchants since 1994.

Related reading: Resolve Finance Debt Consolidation

You may still be added to the MATCH list in error, which can cause issues for your business.

Despite the requirements, mistakes can happen, and it's up to you to contact the acquiring bank to inform them of the mistake.

The acquiring bank will evaluate the case to determine if the reason for your inclusion was legitimate or in error.

If your entry was found to be in error, the acquiring bank will contact Mastercard to report the mistake and have your business removed from the MATCH database.

There is little oversight in the process of adding or removing merchants from the TMF list, which can lead to inaccuracies.

Mastercard explicitly states that it does not attempt to verify the accuracy of listings on the TMF list, and the data may be inaccurate or disputed.

You should be aware that individual acquiring banks have the power to add or remove your name from the TMF list if they have justification.

See what others are reading: The Importer Reported a Generic Error

Being on the Terminated Merchant File (TMF) can have severe repercussions for your business. The difficulty in securing new merchant accounts is the most immediate impact, as acquiring banks and payment processors will be wary of approving applications from listed merchants.

This can cripple your business's ability to process credit card payments, leading to significant financial losses. Your business's reputation within the industry can also be tarnished by the TMF status, signaling to other businesses and financial institutions that you're high risk.

Knowing your account was terminated is an immediate red flag to banks, processors, and your customers. This can hurt your business's credibility and cost you long-term relationships.

Your TMF status can make it challenging to establish new partnerships or secure funding, which can further exacerbate financial difficulties. It's crucial to understand your TMF status and take proactive steps to address any issues before applying for new processing services.

Here's an interesting read: Immediate Media Company

If your business is added to the Terminated Merchant File, addressing the underlying concerns immediately is key to getting removed. Boosting your data security can help if you were added for PCI-DSS non-compliance.

Implementing a dynamic chargeback prevention strategy can also help, especially if excessive chargebacks were the reason for being MATCHed. This can include using automated response programs that provide additional transaction information in real time.

The Terminated Merchant File is not always accurate, as individual acquiring banks have the power to add or remove merchants without much oversight. MasterCard explicitly states that it doesn't verify the accuracy of listings, so even if you're disputing your inclusion, it may not be removed.

Readers also liked: Market Value Added

If you think a mistake was made, you can try to prove it to the bank, but this is no guarantee you'll be removed from the list. The bank's decision is still at their discretion.

The Terminated Merchant File (TMF) or Match List is managed by MasterCard, but individual acquiring banks can add or remove merchants from the database if they have justification. There's little oversight in this process.

MasterCard explicitly states it doesn't verify the accuracy of the listings or the basis for including a merchant on the TMF list. This means the data may be inaccurate or the circumstances surrounding your inclusion on the list may be disputed.

You can try to correct a mistake, but it's essential to understand the process and the bank's power in making decisions.

Boosting your data security is a simple solution to avoid being added to the Terminated Merchant File, especially if you were added for PCI-DSS non-compliance.

Implementing a dynamic chargeback prevention strategy is also essential, as excessive chargebacks are the most common reason for being MATCHed.

Automated response programs can provide additional transaction information in real time, helping to resolve queries and avoid chargebacks.

Lowering your overall risk of fraud is a basic technique to avoid being added to the Terminated Merchant File, and some card network programs offer these types of programs.

If your business is on the MATCH List, you may have a hard time finding processors willing to establish a working relationship with you, and some payment processors who accept high-risk merchants usually offset the risk with higher fees and stricter requirements.

You probably won't even be notified before being added to the TMF, so it's essential to stay on top of your business's compliance and risk management.

The TMF list contains over 10,000 entries globally, with merchants in high-risk industries facing significant challenges.

Merchants in industries like subscription services, e-commerce, and travel are more likely to face frequent chargebacks and fraud.

On average, merchants placed on the TMF list experience a 30% increase in transaction fees.

A fitness subscription service was placed on the TMF list after consistently exceeding the acceptable chargeback ratio, impacting its ability to partner with payment providers.

To regain compliance, the business had to implement strict chargeback management strategies.

Related reading: Chargeback