Why Merchants Get MATCH’d
MATCH is a MasterCard system that is essentially a database which holds information with regards to businesses as well as their owners’ privileges for processing credit cards and reasons for being terminated. MATCH is used by acquiring merchant processing banks to screen all potential applicants and find out whether the applicant has had a termination of privileges in the past. Acquiring banks are also mandated to add or remove a merchant from the MATCH, pending credible justification. In sum, in a MATCH file, a merchant service provider is blacklisted and is used as a reference by banks when taking on new businesses to avoid getting stuck with unreliable business partners.
According to the MasterCard rules and procedures, the company does not confirm nor verify the accuracy of information that the acquiring bank reports or saves in the MATCH database. This is despite the fact that the information is subject to dispute or interpret as inaccurate or wrongful reporting. The acquirer therefore has full discretion on deciding who should be added or removed from the list, if it is lacking in checks and balances.
When a merchant is added to the MATCH database, the name of the business, the business principal, as well as any partners are put on file and essentially blackballed from opening any new merchant account in any part of the country. This makes it close to impossible for one to obtain a new account through any bank.
The business of processing merchants is a potentially high risk of loss to the banks. The MATCH database is utilized by banks to determine whether an account opening offers a lesser risk compared to the risk tolerance of the bank. When a bank discovers that an applicant for a merchant account exists in the MATCH database, the bank will contact the bank that placed the said account applicant to find out why such an action was taken. Based on the information that the acquiring bank gets from the previous account of the applicant, it will either: accept or decline the application, or offer acceptance that is conditional based on specified restrictions aimed at preventing a similar scenario from recurring.
The reasons for a merchant account TMF blacklist being used by banks is to curb any merchants that have been previously involved in too many charge backs, money laundering, or fraudulent activity. Although MasterCard leaves it to the acquiring banks discretion to add or remove terminated merchant account TMF, the company has made their guidelines stricter.
According to the MasterCard rules and procedures, the company does not confirm nor verify the accuracy of information that the acquiring bank reports or saves in the MATCH database. This is despite the fact that the information is subject to dispute or interpret as inaccurate or wrongful reporting. The acquirer therefore has full discretion on deciding who should be added or removed from the list, if it is lacking in checks and balances.
When a merchant is added to the MATCH database, the name of the business, the business principal, as well as any partners are put on file and essentially blackballed from opening any new merchant account in any part of the country. This makes it close to impossible for one to obtain a new account through any bank.
The business of processing merchants is a potentially high risk of loss to the banks. The MATCH database is utilized by banks to determine whether an account opening offers a lesser risk compared to the risk tolerance of the bank. When a bank discovers that an applicant for a merchant account exists in the MATCH database, the bank will contact the bank that placed the said account applicant to find out why such an action was taken. Based on the information that the acquiring bank gets from the previous account of the applicant, it will either: accept or decline the application, or offer acceptance that is conditional based on specified restrictions aimed at preventing a similar scenario from recurring.
The reasons for a merchant account TMF blacklist being used by banks is to curb any merchants that have been previously involved in too many charge backs, money laundering, or fraudulent activity. Although MasterCard leaves it to the acquiring banks discretion to add or remove terminated merchant account TMF, the company has made their guidelines stricter.
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