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1-800-503-1972 fax 1-212-658-9003 |
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More about:
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When consumers do not honor the terms of their credit agreements, the creditor may report the default to a credit reporting agency. If the consumer applies for additional credit, the new creditor obtains a credit report and learns about the consumer’s previous history. The merchant processing banks (also known as "acquiring" banks) do not have a similar credit-reporting agency available that can report information about the way that a business handles its merchant processing responsibilities. The card associations, instead, use a file known as "MATCH." The MATCH File is a database file, previously and most commonly known as the Terminated Merchant File "TMF." It is maintained by MasterCard International and is the way by which MasterCard and Visa acquiring banks identify merchants, and the principals, which have been terminated for specific reasons.
When applying for a New Merchant Processing Account.Your new merchant acquiring bank must query the MATCH file to determine whether your company, or its principals, has been terminated. If your new acquirer receives a response indicating a "possible match" against a merchant or individual listed on the file, the acquirer must double check and make certain the listed merchant or individual is truly the same as the one for which the inquiry was generated. If so, the acquirer must contact the listing bank to determine why the business or individual was added to the file. If a previous acquirer listed your business or your name, that does not mean you are prohibited from obtaining merchant processing privileges in the future. The new acquirer is to base its approval decision on complete investigation and to use the MATCH file as an informational tool in the decision making process. Some acquirers will issue an approval conditioned upon having the listing removed by the prior processor while others will review the circumstances surrounding the listing and make an informed decision.
If your Account is terminated. We advise you to carefully read your merchant processing agreement and understand the circumstances under which your processing privileges may be terminated; in some instances immediately. When your acquirer notifies you of intent to terminate your account, the acquirer is required to list your business and principal names on the terminated "MATCH" file. There are eight instances in which that listing is required on the same day as the notification: The acquirer listing will include the business name as well as the name and identification of the business principals. If the termination was for reasons other than the eight listed above, the acquirer has until the next day to add the merchant and principal to the listing.
Requesting a Listing Change or Deletion If you believe your business or name has been erroneously added to the MATCH file, you must work with the acquirer that added the listing to the file. Only that acquirer is authorized to request a change or deletion of the information. If your counsel is unfamiliar with the credit card industry or Visa and MasterCard associations, you may want to consider consulting with a firm specializing in this issue. If the listing acquirer recognizes that the listing was in error, that acquirer must request the file correction immediately upon recognition of the error. Obvious examples would include the wrong business and principal names but could also include termination for reasons that would not warrant a public listing (e.g.. inactivity, etc.) An error does not include an unresolved dispute over the definition of "excessive chargebacks" and other violations. To request a change or deletion, the listing bank submits its request to MasterCard International, in Purchase New York. The designated individual at MasterCard will review the merchant’s explanation and listing bank’s justification for change or removal from the listing. MasterCard International reserves the right to deny the request. The listing bank must sincerely explain its reason for the deletion.
The acquiring bank that adds or removes a merchant or individual from the MATCH file must take care to do so in a responsible manner. A knee jerk addition of a merchant or individual to the listing can result in unwarranted business difficulty to the listed business and owner. (It can be similar to a creditor reporting wrong information about your credit history) Likewise, failure to list a "problem merchant" means the acquirer is not living up to the responsibilities to forewarn its fellow Visa and MasterCard members. The decision to list, not to list and whether to remove is to be taken very seriously by the acquirer. In fact, a Visa member who fails to comply with listing requirements could be held liable for the losses incurred by another acquiring bank for failure to list. On the other hand, Visa requires the acquirer to indemnify Visa for all claims resulting from its erroneous addition to, or deletion from or failure to remove from the MATCH listing when required.
It is an understatement to conclude that the listing of your business or name is a very serious matter. The card associations hold the acquiring bank accountable for the processing activity flowing through your merchant processing account. Once chargeback levels increase and/or suspicious activity occurs, it is critical for business owners to resolve the matter at once. With delays and at some point, the acquiring bank runs out of options and is required to terminate and list the merchant and individual. We have always found that correcting the cause of consumer disputes, chargebacks and suspicious activity is a less expensive and more permanent choice. Every merchant, once facing the difficulty of being "listed", wishes he had been as forceful in correcting the practices as he was in resisting the credit card rules. Termination and listing can cost you your business. Let’s comply with the rules so that your business can continue to grow and prosper!
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