How To Avoid Being Placed On The Match File (A.K.A. Terminated Merchant File)
 

The Match File is a database file used by MasterCard and Visa processing banks to identify specific merchants and owners who have had their merchant accounts terminated. Once a merchant is on this list it is highly unlikely that future merchant account applications will be approved. The Match File is essentially a BLACKLIST from which it is almost impossible to be removed.
For a business or merchant to be added to the Match File they need to violate Visa and MasterCard rules in some way. The most common reasons include:

-Fraud
-Factoring (ringing sales for another business)
-An excessive number of chargebacks
-The processing bank concludes that serious violations of the merchant agreement could result in increased loss exposure to itself or the credit card community.

Once a merchant has been placed on The Match File only the processing bank that added them can remove them from it. The merchant must work with them directly to accomplish this.
You do not want to be on the Match File!

Things You Can't Do

Just because you have a merchant account doesn?t mean you can do anything you want with it. Visa and MasterCard has guidelines governing their use. Here are some things you cannot do:

-Personal Use Visa and MasterCard do not allow their services to be used for personal reasons. All accounts must be established for one business and to be used only for that business' products and services. An account cannot be established for an individual nor can a merchant use their merchant account for personal reasons.

-Factoring Visa and MasterCard do not allow more then one business to use a merchant account. All accounts must be established for one business and to be used only for that business' products and services. When a business processes transactions for another business, even if they own that business, they are ?factoring?.

-Charge More for Credit Card Transactions Visa and MasterCard does not allow a merchant to charge more for products/services paid for by their credit cards. They do not want paying by credit card to be seen in a negative light. 
If a merchant wishes to offset the additional costs of accepting credit cards, they should do one of the following:
Increase prices on their products/services for all purchases
Increase prices on their products/services and then offer a cash discount

-Charging a convenience fee for accepting credit cards is not considered acceptable.

-Set a Purchase Minimum Visa and MasterCard do not allow merchants to set a minimum purchase amount for which credit cards may be used. For example, a merchant may not declare that a purchase must be at least $50 in size in order to use a credit card for payment.


These are some basic rules all merchants should know. Whether you are a start up or an existing business manage your merchant accounts accordingly. Getting blacklisted can have detrimental affects on your business. Make sure that the employees you have handling the processing portion of your business understand these rules as well. haIPS believes in being a strategic partner with their merchants. haWe can help guide you on the proper training and understanding of what it takes to keep a long term business relationship with the banks and credit card providers.

I hope this has been informative and please contact me with any questions.

Regards,
Keith
[email protected]
O.800.439.1974 ext.122

I know plenty of merchants who charge a convenience fee and who have minimum costs to use credit cards.
WG

well if their customers ever started pushing it they would get fined most likely, its against agreement to charge your customers convenience fee..

I see minimums to use a CC quite a bit too. I often wonder if they ever read their agreement to process cards as it is against the rules.

use a strawman or fallback guy whos sole job is to be the name on the papers, pay him a contractual % to serve as the principal on the company w/ no other obligations or duties and with no other connections to the business or industry.

yea, plenty of small businesses do that around here too...

You forgot a big one.

A merchant cannot refund a charge with cash . The refund must be applied back to the credit card. Otherwise, it's considered money laundering and the merchant will be reported to the IRS for further investigation. The only way to give a customer cash for a charge is if the merchant account was terminated.

I got audited by the underwriters and that's what they were looking for.

interesting thread

Bestbuy refunded me cash on a debit purchase last week

debit purchase is not credit card

The best way to avoid being placed on the blacklist is to stop carding customers and engaging in widespread fraud. :1orglaugh

And what about people who flaunt the rules?
Is it ever possible to have a MC / visa contact to sort issues like that?

I imagine for the vast majority of adult, it all goes under the radar.

Because it was a debit purchase ... not credit. You get cash back on debit purchases, you get a refund to the card on credit.