As a high risk merchant account provider, oftentimes we receive inquiries from merchants who have been placed on MATCH, the Member Alert To Control High Risk Merchants file (also known as the Terminated Merchants File, or TMF). Believe us, the MATCH list is a distinction merchants want to avoid at all costs.
Think of the MATCH list as an ‘Alcatraz’ of sorts for merchants. Have prisoners escaped? Supposedly, but no one seems to be aware of any. Are MATCH-listed merchants ever able to process credit card transactions? We believe so, but certainly not before serving out a lengthy sentence, especially if a merchant is MATCH-listed for fraud.
We get calls quite often from MATCH-listed merchants seeking a second chance. We’ll listen to their case, and if we can help them, we’ll make every effort. Most often, we cannot, leaving the merchant frustrated.
High risk merchant account providers offer no guarantees
Being a high risk merchant account provider means different things to different merchants. By no means is it a guaranteed merchant account for a MATCH-listed merchant or even a high risk merchant. Several times each week, usually after a decline, we’re incredulously asked, ‘But you’re a high risk payment processor. Why can’t you get me a merchant account?’
True, Instabill largely services high risk merchants and industries – merchants who fit our profile: steady payment processing history, good financials and manage chargebacks effectively. When we receive an inquiry from a merchant on the MATCH list, understandably our guard goes up. Like any good high risk merchant account provider, we’ll want to know exactly how and why that merchant was MATCH listed, which will give us an idea whether or not the merchant account process can move forward.
What gets a merchant MATCH-listed?
The two most common flaws that cause merchants to end up on the MATCH list are fraud, which is ever so common; and chargebacks, which with due diligence, can be managed to a minimum. But also, perhaps overlooked, is poor attention to detail by merchants – not making enough of an effort to stamp out fraud and chargebacks.
Here are some other seedy practices that can lead straight to the MATCH list:
- Transaction laundering: A merchant accepting transactions via a business other than the one for which s/he was approved. Recently, we’ve seen tech support businesses under the guise of furniture businesses (whose rates are significantly lower). We also see shady merchants selling illegal and illicit goods under the guise of overpriced school supplies.
- Deposit of unauthorized or bogus sales: Usually, this is the result of the use of a stolen credit card, and a slew of chargebacks are certain to follow. This shows the card brands that the merchant is more interested in capitalizing on sales, bogus and/or legitimate, than the protection of his/her customers. In the current climate, merchants need the ability to identify fraudulent purchases.
- Failure to curb chargebacks and fraud: We’ve long written how acquiring banks can be temperamental, known to stop payment processing for industries for no reason or notice. The same can be said regarding merchants who fail to prevent instances of fraud and chargebacks. No acquirer has the same tolerance for such, and if they feel a merchant isn’t doing enough prevention, they could be MATCH listed.
Our advice: Fraud detection, KYC and underwriting more sophisticated
Fraud detection best practices are far more sophisticated than they were, even 1-2 years ago. Instabill pre-vets each merchant account inquiry it receives – before we send anything to our acquiring banking partners, who perform their own KYC and underwriting.
We’re a high risk merchant account provider who has seen it all
Instabill wants to get your business processing credit card transactions and keep you processing. As such, everybody wins. Our merchant account experts understand that there are particular challenges with high risk merchant accounts, and we are here to assist. For advice from the best high risk merchant account provider in the business, speak live with a representative at 1-800-530-2444.
