MATCH List: What It Is and How to Overcome It?
The MATCH (Member Alert to Control High-risk Merchants) list, maintained by MasterCard, is a database that tracks merchants flagged as high-risk by payment processors. For businesses that find themselves listed, the situation can feel discouraging since there are several challenges to processing credit card payments, making it difficult to operate, especially for e-commerce businesses.
However, being listed does not mean a business is permanently blocked. While it creates challenges, there are ways to recover and continue operating. This guide explains how businesses can manage their situation, find alternative payment solutions, and work with experts in high-risk merchant services.
What Is the MATCH List?
The MATCH database helps acquiring banks and payment processors identify businesses with high credit risk. Companies usually end up on this list due to violations such as fraud, excessive chargebacks, or non-compliance with industry standards.
Reasons Businesses Get Listed
- Excessive chargebacks: A chargeback rate above 1% signals high risk.
- Fraud or security violations: Engaging in fraudulent activity or failing to meet PCI DSS standards.
- Financial instability: Severe financial issues can lead to listing.
- Contract breaches: Violating agreements with payment processors like Visa or MasterCard.
Once on the MATCH list, acquiring banks often refuse to work with the business, making it difficult to maintain or open a merchant account. This can severely impact operations.
Consequences of Being on the MATCH List
Loss of Payment Processing Access
Traditional payment processors typically reject businesses listed on the MATCH database. Without access to credit card processing, businesses face major operational challenges, particularly in e-commerce.
Reputation Damage
Being on the MATCH list harms a company’s reputation. Payment processors check the database when reviewing applications. If a business appears on the list, it may be rejected automatically, limiting access to essential financial services.
How Long Does a MATCH Listing Last?
A business remains on the MATCH list for up to five years. In cases of severe violations, such as fraud, a permanent ban is possible. This prolonged listing can disrupt operations, making quick corrective actions essential.
Strategies to Overcome a MATCH Listing
1. Work with High-Risk Payment Processors
High-risk payment processors specialize in handling businesses flagged as high-risk. They collaborate with acquiring banks willing to process payments despite a company’s listing on the MATCH database.
Considerations when using high-risk processors:
- Higher fees: Expect increased transaction and setup costs.
- Stricter contract terms: Rolling reserves or delayed payouts may apply.
- Limited features: Fewer payment options and integrations compared to standard processors.
Some well-known high-risk payment processors include SMB Global and DirectPayNet. These providers cater to industries with high chargeback rates, such as online gambling, adult content, and subscription services.
2. Use Alternative Payment Methods
While traditional credit card processing may be unavailable, businesses can explore other options:
- ACH payments: Reliable bank-to-bank transfers, often used for recurring billing.
- eChecks: Electronic checks are processed through the ACH network.
- Cryptocurrency: Accepting Bitcoin, Ethereum, or Litecoin can bypass traditional processors, though adoption remains limited.
Implementing alternative payment methods ensures continued transaction processing even without traditional merchant accounts.
3. Reduce Chargebacks
Chargebacks are a primary reason businesses end up on the MATCH list. Reducing chargebacks can help businesses avoid further issues.
Steps to lower chargebacks:
- Monitor chargeback rates: Identify trends and address potential problems early.
- Investigate disputes: Determine whether chargebacks stem from fraud, customer dissatisfaction, or product issues.
- Use fraud prevention tools: Implement 3D Secure and Address Verification System (AVS) to detect fraudulent transactions.
- Enhance customer service: Resolve disputes quickly and offer clear refund policies.
Taking these steps reassures payment processors that the business is committed to reducing risk.
4. Work with a Merchant Consultant
Merchant consultants specialize in high-risk accounts and can help businesses navigate MATCH-related challenges.
How a consultant can assist:
- Identify reasons for the MATCH listing and recommend corrective actions.
- Negotiate with payment processors to shorten the listing period or remove the business from the list.
- Assist with securing a new merchant account with high-risk payment processors.
5. Maintain Compliance to Avoid Future Issues
Staying compliant with industry standards helps prevent future problems. One crucial requirement is PCI DSS (Payment Card Industry Data Security Standard) compliance, which ensures proper handling of customer payment data. Businesses should also follow best practices for fraud prevention and maintain transparent operations.
Final Thoughts
Being placed on the MATCH list presents challenges, but it does not mark the end of a business. Companies can recover by working with high-risk payment processors, adopting alternative payment methods, managing chargebacks effectively, and seeking expert guidance.
If your business is on the MATCH list and needs assistance, Contact us Today to Book a Free Consultation with our specialists.
Want to get more informed? Read our article “How to Restore My Stripe Bank Account?” to find out about the best ways to restore your Stripe Account.
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