Getting A High Risk Merchant Account If You're On The Match List
Payment Processing Expert
What Is the MATCH List?
The MATCH list (Member Alert to Control High-Risk Merchants) is a database maintained by Mastercard that flags merchants whose payment processing privileges were revoked—usually due to excessive chargebacks, fraud, or card network violations. Acquiring banks use this list to assess risk during the merchant account approval process.
Why It Exists
The MATCH list helps processors and acquirers avoid onboarding high-risk businesses by sharing data on merchants with a history of serious issues.
How It Works
When you apply for a new merchant account, your acquiring bank checks the MATCH list. If you're listed, it signals potential risk and can lead to automatic rejection.
Common Reasons for Being Listed
- Excessive chargebacks
- Fraudulent activity
- Non-compliance with card brand rules
- Data breaches or business misrepresentation
Consequences
Being on the MATCH list makes it extremely difficult to open a new merchant account or continue processing with existing providers.
Can You Check the MATCH List?
There’s no public access. Most merchants only find out they’re listed after being denied for a new account. Your current processor or acquiring bank can provide clarification.
How to Get Removed
Removal is rare and often requires proving your business is no longer high-risk. In most cases, merchants are automatically removed after five years.
Adaptiv Payments
On the match list? Adaptiv can help. Apply today.
Table of Contents
- What is the MATCH List and Why?
- Understanding MATCH List Merchant Account Challenges
- High Risk Merchant Account Options Explained
- How to Get a MATCH List Merchant Account
- Tips for Maintaining Your Merchant Account
Being placed on the MATCH list (Member Alert To Control High-Risk Merchants) can feel like a death sentence for your business’s ability to accept credit card payments. All of a sudden, finding a reliable payment processor becomes impossible, and the phrase “high risk merchant account” becomes a constant, frustrating search term. But don’t despair! While getting a match list merchant account presents unique challenges, it’s absolutely achievable with the right knowledge and strategy. This post will cut through the confusion and provide you with a clear roadmap to navigating the complexities and regaining your ability to process payments efficiently and securely.
Being placed on the MATCH list, sometimes mistakenly, signals to payment processors that your business poses a higher risk of fraud, chargebacks, or other issues. This can stem from previous processing problems, industry type, or even administrative errors. Understanding why you’re on the list is the first crucial step. Then, you need to identify processors who specialize in serving high-risk merchants and are willing to work with businesses on the MATCH list. We’ll explore what factors processors consider, the documentation you’ll need to gather, and how to present your business in the best possible light to secure that all-important match list merchant account.
This isn’t just about finding any merchant account; it’s about finding the right one. We’ll delve into the fees, terms, and conditions to watch out for, ensuring you get a fair deal and avoid further complications. Let’s get started on your journey to regaining payment processing stability and getting your business back on track with a suitable match list merchant account.
What is the MATCH List and Why?
The MATCH (Member Alert to Control High-Risk) List, sometimes incorrectly referred to as the "Terminated Merchant File" (TMF), is a database maintained by Mastercard. It essentially serves as a blacklist for merchants whose merchant accounts have been terminated by an acquiring bank due to specific reasons. These reasons typically involve significant financial risk or violations of card network regulations. Understanding the MATCH List is crucial if you're pursuing a match list merchant account, as being placed on this list can severely hinder your ability to secure payment processing services.
Why is the MATCH List so important? Think of it as a credit score for your merchant account. Banks and payment processors use it to assess the risk associated with onboarding a new merchant. If a merchant's name appears on the MATCH List, it signals a history of problematic behavior, making them a high-risk client. Common reasons for being added to the MATCH List include excessive chargebacks, fraudulent activity, violations of card network operating regulations, bankruptcy, and illegal activities. The consequences of being on the MATCH List can be dire: difficulty opening new merchant accounts, higher processing fees (if you can find a processor willing to work with you), and even legal repercussions depending on the underlying reason for the listing.
The process of obtaining a match list merchant account involves thorough evaluation. You should start by reaching out to your previous acquiring bank to learn about the reason code that led to your MATCH List listing. The specific reason behind your MATCH List listing appears in this code. You must understand the reason behind your listing because it enables you to create a plan to resolve the issue yet removal from the list remains challenging unless you show major improvements to card network regulations. You should expect both increased monitoring and potentially elevated expenses when obtaining a match list merchant account since processors must reduce the assessed risk.
Understanding MATCH List Merchant Account Challenges
Understanding the challenges associated with a match list merchant account is crucial for businesses, especially those operating in industries considered high-risk. A business model outlines how a company plans to make a profit, identifying products/services, target markets, and anticipated expenses. When a merchant finds themselves on a MATCH list (Member Alert to Control High-Risk Merchants), securing or maintaining a merchant account becomes significantly harder, impacting their ability to process credit card payments – a cornerstone of modern marketing and sales strategies. This placement often stems from issues like excessive chargebacks, fraud, or violations of processing agreements, signaling financial risk to potential payment processors.
Financial risk, in this context, refers to the possibility of losing money due to an investment or business venture. For merchant account providers, onboarding a business on the MATCH list represents an elevated credit risk, liquidity risk, and operational risk. These risks necessitate stricter underwriting, higher fees, and potentially rolling reserves, all of which can strain a business's cash flow and profitability. Effective marketing strategies are essential for any business, but a business hampered by match list implications will struggle to deliver its products and services to its customers and maintain relationships with them.
- Address the Root Cause: Identify and rectify the issues that led to the MATCH listing (e.g., high chargeback rates).
- Improve Risk Management: Implement robust fraud prevention and chargeback management systems.
- Seek Specialized Processors: Target high-risk merchant account providers familiar with MATCH list scenarios.
- Prepare Documentation: Gather detailed records demonstrating improved business practices and risk mitigation efforts.
- Be Transparent: Disclose the MATCH listing upfront to potential processors to build trust.
- Consider Alternative Payment Methods: Explore options like ACH transfers or cryptocurrency payments.
- Focus on Customer Service: Proactive customer service can reduce disputes and chargebacks.
High Risk Merchant Account Options Explained
Navigating the complexities of payment processing can be particularly challenging for businesses deemed "high risk." If you're finding it difficult to secure a standard merchant account and suspect you might be on a "match list," understanding your high-risk merchant account options is crucial. High-risk merchant accounts are specifically designed for businesses operating in industries with a higher likelihood of chargebacks, regulatory complexities, or other factors that pose increased financial risks to banks and payment processors. These industries can include nutraceuticals, CBD products, travel, online gaming, adult entertainment, and businesses with subscription-based models or high average transaction amounts. While traditional banks may shy away from these sectors, specialized payment processors like Adaptiv Payments offer tailored solutions to meet their unique needs.
The application procedure for high-risk merchant accounts exceeds standard account requirements. The application requires complete business information that includes processing history along with monthly volume data and bank statements and credit checks. High-risk merchant accounts demand higher fees which may include set-up fees and monthly or annual maintenance fees and per-transaction fees (percentage rate plus fixed amount) and payment gateway fees and chargeback fees. The processing fees for regular merchant accounts usually amount to 2.6% plus $0.10 per transaction but high-risk accounts typically charge 2.95% plus $0.25. The capacity to process credit and debit card payments remains vital for most high-risk businesses to maintain operations and expansion. HighRiskPay.com stands out as a provider that offers high approval rates which enables businesses with difficult profiles to obtain processing solutions.
The evaluation of high-risk merchant account options requires thorough comparison between different provider features and benefits. Business software integration capabilities should be evaluated together with support for international currencies and chargeback management solutions and fraud protection features. The payment processor's long-term stability and reliability should be evaluated even though instant approval might be attractive. Your business needs can be met with a high-risk merchant account that provides secure payment processing after you evaluate your options between different providers.
| Feature | Standard Merchant Account | High-Risk Merchant Account |
|---|---|---|
| Approval Time | Quick (minutes to hours) | Longer (days to weeks) |
| Processing Fees | Lower (e.g., 2.6% + $0.10/transaction) | Higher (e.g., 2.95% + $0.25/transaction) |
| Risk Level | Low | High (due to industry, chargeback rates, etc.) |
How to Get a MATCH List Merchant Account
Every business requiring credit and debit card payments needs to set up a merchant account for successful transactions. Businesses with MATCH list placement face difficulties when trying to get standard merchant accounts. The MATCH list functions as a payment processor database of Mastercard and American Express to track merchants involved in risky activities. High-risk activities include excessive chargeback complaints and suspected fraud along with violations of card brand regulations. The MATCH list designation warns potential payment processors that your business may present elevated risks so they will either reject applications or shut down existing accounts.
The MATCH list contains business information which remains inaccessible to you because of privacy and security regulations. Your business probably appears on the MATCH list because your previous merchant account ended due to excessive chargebacks or suspected fraudulent activity. Being listed in the MATCH database creates challenges for standard merchant account applications but it does not eliminate your chances of approval. The payment processing industry has specialized companies that work with high-risk businesses so they can provide match list merchant accounts to such businesses. These accounts provide an available payment solution for high-risk businesses but they demand higher fees and more stringent terms. A company stays on the MATCH list for a duration of 5 years. You should reach out to the banking institution responsible for adding your company to the MATCH list if you believe the listing is incorrect. The institution should help you solve current problems while you work together to resolve any remaining matters.
The process of acquiring a match list merchant account demands strategic planning along with active engagement. It is essential to determine the factors that led to your MATCH list placement and work on resolving these problems. Businesses that want to get off the MATCH list should implement better fraud prevention systems and enhance customer service to minimize chargebacks while adjusting their practices to meet card brand requirements. Showing dedication to solving MATCH list problems through your actions will enhance your prospects of getting approved by a specialized merchant account provider.
- Understand Why You're on the MATCH List: Identify the specific reasons for your inclusion on the list (e.g., excessive chargebacks, fraud). Review Mastercard’s Security Rules and Procedures (SRP), Section 11.5 for a list of reasons that companies are placed on the list.
- Rectify Underlying Issues: Implement measures to address the problems that led to your being flagged as high-risk.
- Seek Specialized Providers: Look for payment processors that specifically cater to high-risk businesses.
- Be Prepared for Higher Fees: Expect to pay higher processing fees and potentially face stricter account terms.
- Maintain Transparency: Be upfront with potential processors about your situation and the steps you've taken to improve.
- Improve Business Practices: Focus on reducing chargebacks, preventing fraud, and complying with card brand regulations.
- Consider Alternative Payment Methods: Explore options like PayPal, Stripe, or other payment gateways as alternatives or supplements to a traditional merchant account.
Tips for Maintaining Your Merchant Account
Maintaining a healthy merchant account, especially if you're operating a high-risk business or are concerned about ending up on a "match list merchant account," requires proactive management and a keen understanding of the factors that influence your account's standing. A high-risk merchant account, common in industries like CBD, cannabis, gyms, or subscription services, often comes with stricter scrutiny from payment processors due to factors like higher chargeback rates, regulatory complexities, or business model characteristics. To ensure the longevity and stability of your account, focus on consistently managing your chargeback ratios, staying compliant with all relevant regulations, and maintaining transparent business practices. For example, fitness centers should leverage robust subscription management tools to minimize disputes arising from membership cancellations, and cannabis businesses must prioritize regulatory compliance and fraud prevention to avoid potential issues.
Several strategies can help you maintain a healthy merchant account and avoid issues that could lead to placement on a "match list merchant account". First, implement robust fraud detection and chargeback prevention systems. This might involve address verification services (AVS), CVV verification, and clear communication with customers regarding billing cycles and cancellation policies. Second, focus on providing excellent customer service to proactively address concerns and resolve disputes before they escalate into chargebacks. Third, closely monitor your processing volumes and chargeback ratios to identify potential problems early on. Finally, choose a merchant account provider that specializes in your industry and understands the unique challenges you face. Adaptiv, for instance, boasts a high approval rate for high-risk businesses and offers tailored solutions for various sectors, including CBD, gyms, and cannabis, providing the expertise needed to navigate complex payment processing landscapes and maintain a thriving merchant account. This includes automated billing cycles and secure payment data storage, helping businesses maintain payment processing capabilities.
Conclusion
The process of getting a match list merchant account appears complicated but it remains achievable according to our discussion. Your business can obtain payment processing through high-risk accounts by following the outlined steps after understanding MATCH list basics and acknowledging challenges. Your greatest advantage in this process will be transparency together with persistence and adaptability.
This guide aims to provide essential information which will help you understand your next steps. Contact us for a consultation to explore your individual options for securing a match list merchant account when you are ready to proceed. Our team provides assistance to help you understand complex procedures so you can return to business expansion activities.
