MATCH ListA Real-Life “Burn” Notice for Merchants?

In Danger of Getting Added to the MATCH List? Here’s What to Do.

The name makes it sound like a dating app. However, there’s really nothing to love about being on the MATCH list.

“Getting MATCHed,” as it’s sometimes called, means trouble. It indicates that your business poses an above-average risk for acquirers. Landing on the MATCH List (formerly known as the Terminated Merchant File) means you could lose processing services altogether. You may be blacklisted from getting a new account, meaning you’d be unable to process conventional credit card transactions.

Sounds terrible already. But, as if that weren’t bad enough, you probably won’t even learn that you’ve been added to the list until it’s too late.

So, how do  you wind up on the MATCH List? And, is there anything you can do about it once you’re there?

What is the MATCH List?

MATCH List

[noun]/maCH● list/

The MATCH (Member Alert to Control High-Risk Merchants) List is a comprehensive database created and managed by Mastercard. Acquiring banks may reference the MATCH List to screen merchant applicants and determine the risk they pose prior to providing a merchant account.

Like we mentioned above, the MATCH List is an updated version of the Terminated Merchant File. It’s essentially a detailed electronic list of businesses that have had one or more merchant accounts terminated by their acquiring bank. That’s good information to have since merchants with canceled accounts on their record are typically perceived as “high risk.”

Mastercard developed the MATCH List to keep track of these risky merchants in a centralized location, and they still administer it today. Considered the industry standard, the list used by acquiring banks to help screen applicants. If an applicant has been MATCHed, the acquirer will probably reject their application unless that acquirer specializes in providing services to high-risk merchants.

This makes it effectively impossible for merchants to hide canceled accounts. It also makes it a very high-stakes concern for merchants. Landing on the MATCH List could put your entire business in jeopardy.

Why Am I on the MATCH List?

You can be put on the MATCH List by Mastercard, but most merchants are added by their acquiring bank. The most common cause of a merchant landing on the list is excessive chargebacks. Merchants who regularly exceed the acceptable chargeback thresholds will most likely see their business MATCHed.

Generally speaking, the reasons you would get listed are categorized with a specific MATCH List reason code for each offense. These are not to be confused with chargeback reason codes, which are a separate thing. MATCH List reason codes can include anything from insufficient or ineffective security measures that result in data compromises, to engaging in illegal activities like transaction laundering.

According to Mastercard Security Rules and Procedures, if the acquirer terminates a merchant relationship based on one of the following conditions, the bank is then obligated to add that merchant to the MATCH List. This must be done within five days of account termination.

MATCH List Reason Code	Title	Explanation
Reason Code 01	Account Data Compromise	The merchant, either directly or indirectly, allows unauthorized access to account data
Reason Code 02	Common Point of Purchase	Account data is stolen from the card-present merchant and used with other merchants
Reason Code 03	Laundering	The merchant processed transactions that did not involve a bona fide cardholder
Reason Code 04	Excessive Chargebacks	The merchant breached predetermined chargeback thresholds
Reason Code 05	Excessive Fraud	The merchant breached predetermined fraud-to-sales dollar volume thresholds
Reason Code 06	Currently unused	--
Reason Code 07	Fraud Conviction	One of the business's owners was convicted of criminal fraud
Reason Code 08	Mastercard Questionable Merchant Audit Program	The merchant is labeled a “Questionable Merchant,” as determined by MasterCard guidelines
Reason Code 09	Bankruptcy, Liquidation, Insolvency	The merchant is unable to discharge all financial obligations
Reason Code 10	Violation of Standards	The merchant was in violation of one or more of the card network’s regulations
Reason Code 11	Merchant Collusion	The merchant participated in fraudulent collusive activities
Reason Code 12	PCI-DSS Noncompliance	The merchant wasn’t compliant with PCI-DSS requirements
Reason Code 13	Illegal Transactions	The merchant processed illegal transactions
Reason Code 14	Identity Theft	The business owner’s identity is in question

It’s easy to understand why banks would have issues with the above behavior. However, some of the items — the merchant’s identity being stolen and used for a fraudulent merchant account, for example — may be largely outside the merchant’s control.

Unfortunately, that won’t alter the process. Additions to the MATCH list are mandated by Mastercard and primarily made by the acquirer that canceled the account. Merchants have no say in the manner.

The Consequences of the MATCH List

The MATCH List is a powerful reference tool for financial institutions. It contains five years’ worth of data that has been reported and stored by banks. In other words, any merchant added to the list in the last 60 months will generate a MATCH result.

As we mentioned, an acquirer who terminates a merchant account for a MATCHable violation is required to add that business to the list. That said, however, being MATCHed does not necessarily mean a merchant cannot have a merchant account.

The MATCH list is meant to warn financial institutions about the potential risk that an individual merchant poses. Acquirers can then take that risk into consideration before granting the merchant an account. Some acquirers — typically an offshore payment processor or a domestic high-risk account provider — may decide the merchant is worth the risk.

Of course, the merchant may end up applying to several acquirers before getting accepted. There will be other complications to consider as well.

An acquirer willing to work with a listed merchant will generally only do so for a higher processing fee. A reserve account may also be required, and the merchant can also expect to sign a long-term contract with stiff penalties for early termination.

In short, landing on the MATCH List will mean losing your bank account. You’d then be forced to choose one of two options: either work with a high-risk processor and accept the resulting higher costs, or lose card processing abilities entirely.

What is High-Risk Processing?

A high-risk merchant account is a subset of services that allow businesses in high-risk verticals to accept card payments from customers. These accounts typically come with stricter requirements and stipulations than standard merchant accounts, and will be costlier to maintain.

Your options for  high-risk processing may be severely limited depending on factors like your business model and your chargeback ratio. Your MATCH list reason code could also be a big factor.

To illustrate, consider the fact that some high-risk processors can technically place MATCH-listed businesses, but only if the business was placed on the list due to excessive chargebacks (Code 04). If the merchant was placed on the MATCH list due to outstanding fees or suspected fraud, their application will be denied. 

Working with a high-risk processor is not the end of the world. However, there will be a few trade-offs:

Pros

• You will be allowed to process credit and debit cards 
• Your new processor will feature many of the same perks and platforms that your low-risk processor featured, such as an integrated payment gateway or processing application 
• You might be able to sell products you were previously barred from selling
• You can exceed previous high-payment thresholds

Cons

• You’ll pay higher processing fees
• Long-term contracts and early termination fees often apply
• You may need to maintain a reserve account
• Switching processors will likely be very difficult

Learn more about high-risk processing

What to Do if You Get MATCHed

First, take a deep breath. This is not the end of the world (although it can seem like it at first). There are several things you can do to alleviate the pressure and even to prevent the issue from recurring in the future. 

Here are the steps you should take once you’re added to the MATCH List:

Getting Off the MATCH List

Your data will be removed from the MATCH list after five years, assuming no additional MATCH entries were made. This is the only certain way of getting off the list.

Aside from that, there are only two circumstances where MATCH removal might potentially happen. First, your acquirer contacts Mastercard on your behalf and reports the original addition was made in error. Second, if you were added to the list using MATCH reason code 12 (PCI-DSS Noncompliance), but have since become compliant.

Even within those conditions, the road to MATCH List removal can be long and difficult, with little chance of success. If you were MATCHed by mistake, going to the former acquiring bank with solid evidence of the error might convince them to remove you from the list. There’s no rule that says they have to do that, however.

If you make the list due to PCI noncompliance, you still need to work through the listing acquirer once compliance is achieved. Again, removal is at the bank’s discretion. In these cases, Mastercard may be called upon to intervene, but the bank isn’t required to cooperate.

In the end, the only guaranteed way to get off the list is time. To weather the five-year enforcement term, you may have to optimize your business model to compensate for higher processing fees. It’s also imperative that you minimize risk as much as possible, as another canceled account means the five-year clock starts all over.

Avoid the MATCH List in the First Place

Getting placed on the MATCH list is a challenge and frustration. Chargebacks911® can help you manage your new high-risk status, insulating against both international and domestic chargebacks. Even beyond that… we may be able to help you avoid getting MATCHed in the first place.

The critical factor is to keep chargeback issuances low. That way, you avoid breaching the networks’ chargeback thresholds. We have a full slate of tools that can help, including:

Intelligent Source Detection™

If you can’t determine the true reason for your chargebacks, you’ll end up implementing increasingly inefficient solutions.

Intelligent Source Detection is an innovative, one-of-a-kind solution that can identify the real reason for a chargeback. Using this tool, you can pinpoint chargeback triggers and create prevention and management strategies that truly work.

Learn about Intelligent Source Detection

Merchant Compliance Review

Research shows that up to 40% of chargebacks can be caused by merchant errors and oversights. Fortunately, these errors — and the resulting chargebacks — are entirely preventable.

Our Merchant Compliance Review is a proprietary 106-point inspection of all merchant policies and procedures. This overview isolates and helps rectify errors that could trigger chargebacks.

Learn about Merchant Compliance

Chargeback Alerts

Chargeback alerts are issued when a consumer disputes a transaction. Merchants have the opportunity to refund the transaction, thereby avoiding a chargeback and maintaining their chargeback ratio.

By combining our own proprietary network with those of third-party providers, Chargebacks911 is able to offer the broadest alerts coverage available on the market.

Learn about Chargeback Alerts

Getting MATCHed isn’t something you just have to accept. You can step up and fight back — all you need is to have the right tools and support in your corner. Give Chargebacks911 a call today and see how much you stand to save.