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MATCH List and TMF

Prerequisites

Before reading this page, understand:

Business-Critical

Getting on the MATCH list can end your ability to accept card payments for 5 years. This page explains how to avoid it and what to do if it happens.

On this page

What Is MATCH?

MATCH (Member Alert to Control High-risk Merchants) is Mastercard's database of terminated merchants. Visa calls it the TMF (Terminated Merchant File). Same thing, different names.

When your processor terminates you for certain reasons, they add you to MATCH. Every acquiring bank checks this database before onboarding a new merchant. If you're on it, most legitimate processors won't touch you.

Think of it as the credit report for merchants. Except there's no score, just a scarlet letter.

The 13 MATCH Reason Codes

Your processor must specify why they're adding you. Each reason code tells future processors what happened.

CodeReasonDurationHow Common
01Account Data Compromise5 yearsRare
02Common Point of Purchase5 yearsRare
03Laundering5 yearsRare
04Excessive Chargebacks5 yearsVery Common
05Excessive Fraud5 yearsCommon
06Violation of Standards5 yearsUncommon
07Fraud Conviction5 yearsRare
08Mastercard Questionable Merchant Audit Program5 yearsRare
09Bankruptcy/Liquidation/Insolvency5 yearsUncommon
10Violation of Agreement5 yearsUncommon
11Account Closed for Cause by Payment Facilitator5 yearsCommon
12Identity Theft5 yearsRare
13PCI DSS Non-compliance1 yearUncommon

For most SMBs, codes 04 and 05 are the threat. Excessive chargebacks and excessive fraud are the reasons small businesses end up on MATCH.


What Triggers MATCH Listing

For Chargebacks (Reason Code 04)

Your processor decides when to list you. There's no automatic threshold, but these typically trigger termination:

ScenarioLikelihood of MATCH
One month at 0.95% ratioLow - warning issued
Two months at 1.2% ratioMedium - remediation required
Three+ months over 1.5% ratioHigh - termination likely
Breach with no improvement after remediationVery High
Ignoring processor warningsVery High

Key insight: Processors don't want to MATCH you. Every terminated merchant is lost revenue. They'll work with you if you show effort. The merchants who get listed are typically those who:

  • Ignored warnings
  • Failed to implement remediation plans
  • Showed no improvement over 3+ months
  • Had ratio spikes above 2-3%

For Fraud (Reason Code 05)

Similar pattern, but based on fraud rates:

ScenarioLikelihood of MATCH
TC40 fraud rate above 0.9%Warning issued
Fraud rate above 1.5% for 2+ monthsRemediation required
Known fraud operationImmediate termination

Other Common Triggers

Code 11 (PayFac termination): If you're processing through a PayFac (Stripe, Square, PayPal), they can list you when they terminate. PayFacs have lower tolerance for risk because they're aggregating many merchants.

Code 10 (Agreement violation): Selling prohibited products, misrepresenting your business, or processing for someone else.


How Long You Stay on MATCH

Reason CodeDurationEarly Removal Possible?
01-125 yearsRare, requires processor petition
13 (PCI)1 yearNo

Five years. That's the standard sentence for most MATCH listings. There's no parole. There's no appeal process with Mastercard directly.

The only way off early:

  1. The processor who listed you petitions for removal
  2. You can prove the listing was erroneous
  3. Legal action (expensive, rarely successful)

What Happens After MATCH Listing

Immediate Effects

  1. Your current processing stops. Accounts are closed.
  2. Reserves are held. Usually 6 months, sometimes longer.
  3. Pending payouts may be delayed. Until chargeback exposure passes.

Finding a New Processor

You have three options:

OptionReality
Legitimate processorsWill decline you. They all check MATCH.
High-risk specialistsWill consider you, at a price.
Cash onlyAlways available, but limits growth.

High-Risk Processor Terms

If you go the high-risk route, expect:

TermTypical Range
Discount rate4-10% (vs. 2.5-3% for normal merchants)
Per-transaction fee$0.25-0.50 (vs. $0.10-0.30)
Rolling reserve10-20% held for 6+ months
Monthly minimum$25-50
Chargeback fee$25-50 per dispute
Setup fee$0-500

Math check: If you were doing $50k/month at 2.9%, you paid ~$1,450 in processing. At 7% high-risk, you'd pay ~$3,500. That's $2,000/month extra, or $24,000/year.


Avoiding MATCH

Monitor Before You're in Trouble

Set internal thresholds below network limits:

MetricNetwork ThresholdYour Threshold
Chargeback ratio0.9% (Visa)0.65%
Fraud ratio0.9%0.5%
Monthly chargebacks100 (Mastercard)50

When you hit your internal threshold, start remediation. Don't wait for processor warnings.

Respond Immediately to Processor Warnings

When your processor sends a warning email:

  1. Reply within 24 hours. Silence looks like you don't care.
  2. Acknowledge the problem. Don't make excuses.
  3. Commit to a remediation plan. Be specific about actions and timelines.
  4. Ask what they need. "What would you need to see to be comfortable?"

Submit a Real Remediation Plan

Your plan should include:

ElementWhat to Include
Root causeWhy chargebacks/fraud increased
Immediate actionsWhat you did in the first 48 hours
Short-term fixesChanges this week (alerts, refund policy, etc.)
Long-term fixesSystemic changes (product, process, policy)
Metrics commitment"We expect to reach X% by [date]"
Reporting cadence"We'll report weekly progress"

Negotiate a Voluntary Exit

If you know termination is coming and you can't turn it around, try to negotiate:

Ask: "If we wind down processing voluntarily over 30 days, would you consider not listing us on MATCH?"

Some processors will agree to this because:

  • It's less paperwork for them
  • They avoid potential disputes
  • You're showing good faith

This only works if:

  • You're not egregiously over threshold
  • You have no fraud indicators
  • You're communicating proactively
  • You haven't been deceptive

If You're Already on MATCH

Step 1: Confirm the Listing

You can't check MATCH directly. Ask the processors who decline you:

  • "Can you tell me if there's a MATCH listing?"
  • "What reason code is shown?"
  • "What listing date?"

Step 2: Contact the Listing Processor

Reach out to the processor who listed you:

  • Request documentation of why you were listed
  • Ask about reserve release timeline
  • Ask if there's any path to removal

Step 3: Evaluate Your Options

Step 4: If Using High-Risk Processor

  1. Read the contract carefully. High-risk processors have stricter terms.
  2. Understand reserve terms. When do you get your money?
  3. Get chargeback thresholds in writing. They may be lower than you had before.
  4. Budget for the extra cost. Price your products accordingly.

Step 5: Plan for Life After MATCH

In 5 years, you'll be off the list. Prepare:

  • Maintain clean processing records with high-risk processor
  • Document your remediation and performance
  • Build relationships for when you can return to normal processing

When to Get a Lawyer

Legal help makes sense when:

SituationWhy Legal Help
Erroneous listingYou were listed incorrectly
Processor breachThey didn't follow their own policies
Reserve disputesThey won't release your money
Contract violationsEither party
Significant lossesBusiness damage from wrongful listing

Cost reality: Payment processing lawyers typically charge $300-600/hour. A dispute can cost $10,000-50,000+. Only worth it for significant errors or losses.


Test to Run

MATCH avoidance health check:

CheckAction
Current ratioCalculate today. Are you under 0.65%?
TrendCompare last 3 months. Improving or worsening?
Processor relationshipWhen did you last communicate proactively?
Alert coverageDo you have RDR/Ethoca/CDRN active?
Internal thresholdsHave you set warning thresholds below network limits?

If you're above 0.65%: Start the Zero Point Nine Panic remediation now, before it's a crisis.


Scale Callout

VolumeMATCH Risk Profile
Under $50k/moLow transaction count means a few chargebacks spike your ratio fast. Monitor closely.
$50k-$500k/moMost at-risk range. High enough to attract attention, not high enough to absorb losses.
Over $500k/moProcessors work harder to keep you. More negotiating room, but bigger reserves if you breach.
PayFac merchantsLower threshold for termination. Stripe/Square/PayPal have less patience than traditional acquirers.

Where This Breaks

  1. PayFac terminations. PayFacs (Stripe, Square, PayPal) can list you faster and with less warning than traditional processors. If you're on a PayFac and having issues, move to a traditional processor before termination.

  2. Fraud you didn't cause. If you're a victim of a fraud attack, document everything. Ask your processor to note the circumstances if they must terminate.

  3. Industry-wide issues. Some industries have structurally high chargeback rates (travel, supplements, subscriptions). Consider high-risk processors from the start.

  4. Multiple MCCs. If you're processing under the wrong MCC code and get caught, that's a standards violation (code 06). Make sure your MCC matches your actual business.


Analyst Layer: Metrics to Track

MetricWhat It Tells YouAction Threshold
Days since last processor warningRelationship healthIf > 90 days, reach out proactively
Ratio trend (30/60/90 day)TrajectoryAny upward trend = investigate
Distance to thresholdRisk bufferUnder 0.25% buffer = crisis mode
Chargeback reason code distributionRoot causeShift in distribution = new problem
Reserve balanceCash flow exposureTrack what's held and release dates

Early Warning Dashboard

Track weekly:

Chargeback ratio:        [___]% (target: < 0.65%)
Distance to threshold: [___]% (target: > 0.25%)
Trend: [UP/DOWN/FLAT]
Chargebacks this month: [___] (target: < 50)
Alert coverage: [YES/NO]
Last processor contact: [___] days ago

Next Steps

Not on MATCH but worried?

  1. Calculate your current ratio → Chargeback Metrics
  2. Set up alerts → Setup Dispute Alerts Playbook
  3. Review your risk profile → Zero Point Nine Panic

Processor sending warnings?

  1. Respond immediately → Acknowledge and commit to action
  2. Build remediation plan → Use the template above
  3. Enable all deflection tools → Chargeback Alerts

Already on MATCH?

  1. Confirm the listing details → Contact declining processors
  2. Explore high-risk options → Search "high risk merchant account [your industry]"
  3. Consider non-card alternatives → ACH, cash, invoicing

See Also