What should I do if my business is placed on the TMF

Understanding the dynamics of the Terminated Merchant File (TMF) is crucial for every business owner. Known as the Match List, the TMF is a red flag database that has profound implications for any business operating in the electronic payment industry.
What is the Terminated Merchant File (TMF)?
The TMF is an international database managed by Mastercard that catalogues businesses and owners whose merchant accounts have been terminated. This list serves as a powerful tool for banks to identify high-risk merchants. The TMF contains information about merchants that have breached their agreements with financial institutions, resulting in the termination of their merchant accounts. Common reasons for listing include excessive chargebacks, fraud, money laundering, illegal activities, or violating the terms of the agreement.
Why Might Your Business Be Listed on the TMF?
Several reasons can lead to your business being listed on the TMF. The most frequent reason is a high rate of chargebacks. A chargeback happens when a customer disputes a transaction, leading to a refund from the merchant’s bank. If the ratio of chargebacks to successful transactions exceeds a certain threshold, typically 1%, the merchant is considered high-risk and may be added to the TMF.
Other reasons include suspected fraudulent activities, violation of card network regulations, or failure to comply with the merchant account agreement’s terms and conditions. In extreme cases, a business’s association with illegal activities can lead to being listed on the TMF.
How Can You Have Your Business Removed from the TMF?
Getting your business removed from the TMF can be a challenging task but is not impossible. Typically, you can do this by resolving the issues that led to your listing. Here are some steps you can take:
- Identify the Problem: The first step is to figure out why your business was listed. Contact your acquiring bank or payment processor to get this information.
- Resolve Outstanding Issues: If your listing was due to excessive chargebacks, create and implement strategies to reduce them. If your account was terminated because of fraud or illegal activities, demonstrate that these have been eradicated and won’t recur.
- Reach Out to Your Acquirer: Once all issues are resolved, contact your acquirer and request your removal from the TMF. It’s paramount to provide solid proof that you’ve addressed all issues leading to your listing.
Remember, the process may take some time, and there’s no guarantee of removal. However, showing a proactive and cooperative attitude will increase your chances of success.
What Happens If Your Business Cannot Be Removed from the TMF?
If your business cannot be removed from the TMF, it can be a significant impediment to your operations. With your business on this list, it can be extremely difficult to obtain a merchant account with most banks or payment processors, effectively hindering your ability to process credit and debit card transactions. This could potentially harm your sales and reputation.
If removal isn’t possible, consider seeking the services of high-risk merchant account providers. These providers specialize in working with businesses that have been placed on the TMF, although they often charge higher fees to account for the elevated risk they are taking.
In Conclusion
Navigating the terrain of the TMF can be challenging but understanding its fundamentals is the key to successfully operating in the electronic payment industry. Constant vigilance, proactive management of potential risk factors, and a commitment to maintaining the highest standards of financial integrity are crucial elements in avoiding the TMF. Should your business end up on this list, immediate action and robust remedies are paramount to get your business back on track. Remember, the power of information and timely action can help you turn around even the most daunting situations.

To get removed from the Terminated Merchant File (TMF), also known as the MATCH list, you must resolve the issue that caused your placement, such as settling outstanding debts or disputes with your previous payment processor. Once resolved, you can request the processor to notify MasterCard for removal, but this process is at their discretion and may take time.