Frequently Asked Questions
What is TMF or Terminated Merchant File?
TMF or terminated merchant file refers to a list of merchants whose accounts have been terminated for a reason. TMF does not exist but the term is still used commonly in reference to MATCH file.
What is MATCH file?
MATCH file is an acronym for Member Alert to Control High-Risk. It is a file that contains merchants as well as their principals whose accounts were terminated for a reason or cause. MATCH is very important for the member banks because it helps in assessing risk before any merchant is signed.
How are merchants listed in the MATCH or TMF?
Banks will generally terminate any merchant account and then put it in the MATCH list if it has problems that expose the bank to high risk. Such problems include violation of rules and agreements, fraud, excessive use of counterfeit cards and chargebacks.
Why are banks concerned about merchant accounts or businesses that are listed in MATCH list or TMF?
Transactions that entail the use of credit cards are a high risk business with high volume but low profits margins for the acquiring banks. The loss that the acquiring bank risk is substantial this can get worse in the contemporary environment of high-speed transactions. For this reason, banks use MATCH list to assess risk before opening any merchant accounts. The bank declines any merchant application whose risk exceeds its risk tolerance.
How do merchants find out if they are on the TMF or MATCH file?
Merchants can contact the acquiring bank that declined their merchant account or terminated the account to inquire whether they are in the MATCH list and reasons for their listing.
Who are High-Risk Merchants?
Generally, High-Risk Merchants are merchants who transact their business in the category that has high chances of events that cause loss occurring. Such events include excessive charge backs and use of counterfeit credit cards.
Who are High-Risk Merchants?
Generally, High-Risk Merchants are merchants who transact their business in the category that has high chances of events that cause loss occurring. Such events include excessive charge backs and use of counterfeit credit cards.
What are Chargebacks?
Chargebacks occur when the bank or issuer of the holder of a card reverses a part or all transactions of the credit card back to a merchant back or the acquirer. In that case, the merchant bank charges back the transactions to a merchant account. This makes the merchant responsible for the transactions financially. Chargebacks may also occur upon the request of the cardholder or for some reasons like improper processing of a credit card transaction.
What are retrieval requests?
Retrieval requests are also called copy requests. They occur when the bank of a cardholder ask the acquiring bank to offer copies of transactions back to the acquirer or the merchant bank. The acquiring bank requires the merchant to provide a record of their transaction and if they decline to respond to the retrieval requests with the specific duration, the request are likely to become chargebacks.
Can Chargebacks be prevented by an Authorized Code?
No. Authorization refers to an approval offered by the card issuer to validate the transaction for a merchant bank. A chargeback might occur even when one has an authorization code. Therefore, the authorization code is not a guarantee of payment or prevention of chargeback.