Also called Match List. When you apply for a merchant account, the processor will check to see if you are on the Terminated Merchant File (TMF). If you’re on it, this means that another processor has terminated a merchant account with you, and sends up a red flag to processors and banks that you’re a credit risk. The chances are slim to none of getting a merchant account once your name hits the Match List. Getting on the TMF list is the equivalent of getting blacklisted. It is nearly impossible to be removed from this list and it lasts forever. Here are some reasons a Merchant may be put on the Match List:
§ Credit card fraud — If your fraud detection controls aren’t strong enough you could end up with too many chargebacks.
§ Friendly fraud — This is when a consumer disputes a legitimate charge such as from an adult website.
§ Factoring — Factoring is when a merchant deposits transactions for sales generated by another business.
§ Excessive chargebacks — When chargeback rate is >1% of total sales, calculated monthly and cumulatively.
§ Fraud — Types of fraud include not delivering products or misrepresenting products or services.
§ Violating the merchant agreement.
§ Owing money to a Processor.
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