My Merchant Account Blog

What is the TMF List or better known as MATCH

Wednesday, June 07, 2006

If you have had your merchant account terminated by the merchant account processor, your business name might end up on this list. Visa and MasterCard members both contribute to the combined MATCH list (Member Alert to Control High-risk (Merchants) system); however, MasterCard hosts and regulates the use and access of the system.

The system works by manually entering or batching data through MasterCard's online system for inquiry. When a merchant is identified on the system, there is one of two replies: Exact Match or Partial Match.

• Exact Match: Business Name, Tax ID#, Phone Number, Owner Name, SS#.
• Partial Match: Business Address, Owner Address

Merchant account providers are not prohibited from accepting a merchant that has matched or partially macthed. It is discouraged though and it is considered an unnecessary risk.

The merchant account provider / acquirer who places a merchant on the file has the sole ability to remove the merchant. This is uncommon yet happens more than one would expect. Placing a merchant on MATCH may seem excessive in some circumstances, but it is mandated that a merchant terminated for one of the reason codes listed below is placed on the MATCH file. If the acquirer fails to do so, and the merchant causes another member bank monetary losses, the original member can be liable for those damages.

Merchants can be added to MATCH for any one of the following reason codes:

1. Excessive Counterfeit
2. Unauthorized Cardholder Charges
3. Laundering/Factoring
4. Excessive Chargebacks
5. Excessive Fraud (8% violation rate)
6. Violation of Merchant Agreement
7. Fraud Conviction

Most reason codes are very specific; some leave room for interpretation. The possibility of a good merchant or otherwise not deserving merchant being placed on MATCH cannot be denied. The ratio still makes MATCH a necessary defense for the acquiring industry.

System Features

MATCH uses Member-reported information regarding Merchants and their owners to offer Acquirers the following fraud detection features and options for assessing risk:

• Acquirers may add and search for information regarding up to five principal and associate business owners per Merchant
• Acquirers may designate regions and countries for database searches
• MATCH uses multiple fields to determine possible matches
• MATCH edits specific fields of data and reduces processing delays by notifying inquiring Members of errors as records are processed
• MATCH supports retroactive alert processing of data residing on the database for up to 360 days
• Acquirers determine whether they want to receive inquiry matches, and if so, the type of information the system returns
• MATCH processes data submitted by Acquirers once per day and provides daily detail response files
• Acquirers may access MATCH data online in real time using a PC at the Acquirer's site

This is something very important though.  MasterCard does not verify, otherwise confirm, or ask for confirmation of either the basis for or accuracy of any information that is reported to or listed in MATCH. It is possible that information has been wrongfully reported or inaccurately reported. It is also possible that facts and circumstances giving rise to a MATCH report may be subject to interpretation and dispute.

Most Reasons Why Acquirers Add a Merchant to the MATCH List

1. Account Data Compromise
2. Common Point of Purchase
3. Laundering
4. Excessive Chargebacks
5. Excessive Fraud
6. Fraud Conviction
7. Bankruptcy / Liquidations / Insolvency
8. Violation of Standards
9. Merchant Collusion
10. PCI Data Security Standard (PCI DSS) Noncompliance
11. Illegal Transaction
12. Identity Theft

Being Removed from the MATCH List

MasterCard may remove a Merchant listing from MATCH for the following reasons:

1. The Acquirer reports to MasterCard that the Acquirer added the Merchant to MATCH in error
2. The Merchant listing is for reason code 12 PCI DSS (Payment Card Industry Data Security Standard Noncompliance) and the Acquirer has confirmed that the Merchant has become compliant with the PCI DSS. The Acquirer must submit the request to remove a MATCH reason code 12 Merchant listing from MATCH in writing on the Acquirer’s letterhead to Merchant Fraud Control

Selling Downloadable Goods

Saturday, June 03, 2006

If you are selling downloadable goods, you might consider a third party processor or system instead of a merchant account. The reason being is that these accounts have a higher risk of chargebacks. And you do not want to risk putting your merchant account in jeopardy. If you get too many chargebacks, you might be placed on the TMF list and then it would be very difficult to get a merchant account.

Companies like Share It will do the credit card scrubbing for you. They will process the credit card transaction and give you your money. They take all the risks. You sell your product. It might cost a little more, but in the long run, it will be worth it.

Do your due diligence. Share It is a bit more expensive but they are taking all the risks for that sale. You are selling your product and still making money.