Terminated Merchant File (TMF) Definition
What is the Terminated Merchant File?
The
Terminated Merchant File (TMF), also known as the MATCH list, is a
database that contains information about businesses that have had their
credit card processing services terminated by a provider. Acquiring
Banks consult this list when determining whether or not to extend a
merchant account to a given business, and in most cases these banks will
screen out applicants who have been placed in the TMF. In this way, the
TMF acts as an industry-wide blacklist, and only acquiring banks can
add or remove merchants from this database. Although MasterCard
established this resource, it does not investigate or attest to the
accuracy of the information it receives.
Merchants can be added
to the TMF for fraudulent activity, excessive chargebacks, gross
breaches of contract terms, or, generally speaking, for any reason at
all. Since there is no oversight preventing companies from mistakenly or
unfairly adding a merchant’s business to the list, the potential for
abuse is very high. In some instances, a merchant account provider’s
contract terms will state plainly that early termination of the contract
will result in the merchant’s placement on the TMF. This is a highly
unethical practice, and these businesses should be reported to external
consumer protection agencies like the FTC.
Merchants who are
placed on the TMF will remain there for five years unless the bank that
initially placed them there removes them from the list. Therefore, a
merchant who wishes to be removed from the list should contact the
provider who originally requested that the merchant be placed on the TMF
and be prepared to present evidence contesting the provider’s claim.