Overview of the Terminated Merchant File List By Frank Lucer At Isnare.com Ezine Articles

When you apply for a new credit card, the issuing bank will check your credit report to determine their potential risk. If your report is "clean" and your score represents an acceptable credit risk to the issuing bank, they'll establish an account for you. On the other hand, if you have violated the terms of an issuing bank's agreement in the past (i.e. failure to pay, fraud, etc.), your credit report will provide details which warn other creditors.

Acquiring banks which provide merchant accounts use a similar system. Rather than relying upon a credit report, they use the Terminated Merchant File (also known as TMF or MATCH). If your business is listed on the TMF, opening a new merchant account will be problematic.

In this article, we'll describe a few reasons why businesses often find themselves listed. We'll also provide useful advice for getting your name off the list and avoiding being placed upon in the future.

Possible Ways To Make The List

There are several reasons for which your company may be placed on the TMF. Unfortunately, not all of them are within your control. For example, fraudulent activity is one of the most common reasons businesses are placed on the list. If you fail to deliver products that your customers have purchased, they will complain. Multiple complaints to your acquiring bank may result in the termination of your payment processing privileges. In those privileges are revoked, the acquirer must add your name to the TMF.

But, fraudulent activity can also occur due to lack of security and fraud controls when you process payments for your customers. This often leads to chargebacks. If your company receives too many chargebacks, your acquirer will terminate your merchant account and place you on the TMF.

You can also be listed if you fail to comply with your acquirer's agreement, deposit counterfeit sales, or if you owe money to a former merchant account provider.

How To Remove Your Name

If your company's name is listed on the TMF, you'll need to contact the acquiring bank that placed it there in order to have it removed. It's worth noting that most acquirers will refuse to submit a removal request on your behalf unless the original listing was made in error. That said, if an error was made, the acquirer is required to submit a correction to MasterCard International.

How To Avoid Being "Listed"

Because being placed on the Terminated Merchant File can create severe problems for your business, you should do everything you can in order to avoid being listed. Try to resolve all customer grievances as quickly as possible. That will prevent them from escalating into complaints and chargebacks.

If you haven't already done so, integrate robust fraud controls in order to protect your customers' information while processing payments. Monitor sales activity closely to identify transactions which appear suspicious. Finally, communicate with your merchant account provider when you expect your sales volume will exceed the limit for which your business is authorized.

Steering Clear And Growing Your Business

Your acquiring bank is held accountable for your payment processing activity. That's why they will react swiftly to terminate your account and place your company on the TMF if they detect fraud, agreement violations, or too many chargebacks. Understand your acquiring bank's perspective and communicate openly with them. By doing so, you can avoid problems and keep your name from being placed on the Terminated Merchant File.

Being able to process debit and credit card payments for your customers is an irreplaceable advantage. Don't run the risk of losing that privilege by being listed on the TMF.

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