Terminated Merchant File (TMF) Explained
The Terminated Merchant File (TMF), also referred to as the MATCH list (Member Alert to Control High-risk Merchants), is a tool used by payment processors to identify merchants who pose a high risk based on previous activities. This database is maintained by MasterCard and is accessed by acquiring banks to screen potential or existing clients. Being listed on the TMF/MATCH impacts a merchant’s ability to secure credit card processing capabilities, which can profoundly affect their business operations and financial health.
How Does a Business Get on The TMF List?
The criteria for being placed on the TMF/MATCH list are strictly defined and include several key offenses that warrant this punitive measure. These include but are not limited to engaging in fraudulent activity, violating Visa or MasterCard’s standards, laundering, bankruptcy, insolvency, or receiving a high volume of consumer complaints. Excessive chargebacks, a common reason for listing, generally occur when customers frequently dispute charges, often citing dissatisfaction with products or services or claiming non-delivery of goods. This listing is not arbitrary but is instead based on documented patterns of behavior that suggest a merchant may be a continuing risk to payment processors and banks.
