What we now know as MATCH was formerly known as the Terminated Merchant File, a list that was far more accurately named (TMF). Mastercard developed this tool to aid acquiring banks in vetting potential merchants for high risk before committing to merchant partnerships with them.
How does the MATCH list work?
Information about businesses and their owners is gathered in a central database called MATCH (Member Alert to Control High-Risk Merchants). Information about closed merchant accounts is also included. Mastercard has made the TMF (Terminated Merchant File) and MATCH (Merchant Acquirer File) lists mutually accessible by merging the two.
Existing merchant accounts in good standing will remain intact even if you are placed on the MATCH list; however, getting new merchant accounts will be difficult while you are on the list.
Acquirers that work with Mastercard are obligated to check the list before accepting a new merchant, and they will almost always refuse to work with any business that appears on it.
High-risk merchants may be accepted by some payment processors, but only if they are willing to pay astronomical fees.
When a store is added to the MATCH list, no formal notification is sent out. When they apply for a new account and are rejected, that’s usually when they discover they’re on the list.
What this means is basically anything that makes the owner of the account look like a risky bet. There is evidence of money laundering, fraud, or cooperation on the part of the account holder or indicating he was making illicit transactions; the merchant is unable to pay off debts and cover expenses because of insolvency or bankruptcy; the account was illegally established, and the funds were stolen, or the merchant has declared bankruptcy or is insolvent (agreement).
