The purpose of this article is to strike fear into the hearts of businesses with Merchant Credit Card Accounts.  It applies to businesses that operate both on  and off the web.  If you've read the article above, Pitfalls Of Credit Card Merchant Accounts, you only know part of the story so far.

Nearly all businesses have come to depend on accepting credit card payments for their products and services.  The public loves buying with "plastic money"; it is convenient, you can reverse payments if you are not happy with the products or services.  With plastic money you can buy with even more confidence then you can with checks or even cash.

What is the worst case scenario for a business that has lost their credit card merchant account and been put on the MATCH list?  I'll tell you, but you must be patient here because it requires some explanation:

The first thing that a business does when their merchant account has been terminated is to apply for a new merchant account with a different Merchant Account Provider.  If their account had been terminated and they have NOT been put on the official MATCH list, formerly called the Terminated Merchant File, then acquiring a new merchant account is entirely possible.

If, however the merchant WAS put on the official MATCH list the probable scenario worsens drastically.  The merchant is not proud of being on the MATCH list.  He feel he should hide, withhold the truth about it out of fear that it will prevent his new Merchant Account application from being accepted.  Failing to report his MATCH list status is the very thing that lifts the merchant out of the frying pan and into the fire.  This is the beginning of the worst situation for the merchant...it is his path to going out of business.

When the new Merchant Account provider is not told about the merchant being on the MATCH list the provider will typically accept the application and setup a new credit card merchant account for the merchant.  The merchant is happy!  He is back in business, and is again accepting credit cards for his products and services.......BUT NOT FOR LONG. 

It will take about 30 days or less for his application, containing ALL of his personal information (SS#, name, address, etc., etc.), to be reviewed by MasterCard International, keepers of the MATCH list.  The account information will MATCH the merchant's data in the MATCH file just like a fingerprint or DNA matches criminal computer records.

The new Merchant Account Provider is notified that  the merchant IS on the MATCH file, even though he lied about it.  The merchant's credit card account is promptly shut down, terminated, closed. 

The fact that the account is terminated is NOT the worst thing.  The worst thing is that all the money that is still in the "pipeline", not deposited into his bank account, is FROZEN!

It can take as long as a year or more for the merchant to recover ANY of the money that has been frozen.  Why?  The money is now entrusted to the Merchant Account Provider to use to pay any refunds or chargebacks that may materialize.  The customers must be protected, and it is clear that the merchant is not trustworthy because he got himself on the MATCH list and then lied about it in his new application for a merchant account.

After all refunds, chargebacks, and service charges have been satisfied the merchant will be given whatever money remains of the "pipeline" funds.

This is NOT a made up story.  This exact scenario is ALWAYS happening to credit card merchants all over the world.

Here's what credit card merchants should learn from this:

•  Learn and obey all of the rules and responsibilities of having a credit card merchant account.

•  When applying for a NEW merchant account be SURE to tell the truth.  Reporting that you ARE on the MATCH list may or may not cause your application to be rejected.  There ARE some Merchant Account Providers that WILL accept your application and allow you to accept credit cards once again. 

•  A new account will have some "hurdles" for you to jump.  You may need to prove yourself by having your pipeline funds paid out in the form of a "rolling reserve".  A rolling reserve means that for a specified period of time, perhaps a year, more or less, some of the money in the pipeline will be withheld as "collateral" to pay any refunds or chargebacks that you allow to occur.  The new account absolutely requires ethical business behavior.  Foremost is the idea of not putting your Merchant Provider in any financial risk.  If their risk is too high your fees will be very high or the merchant account will be terminated again.

•   We may be able to help you get a NEW Merchant account even if you are on the Match file.  There are a few Merchant Account providers that are willing to accept some of the "high risk" accounts that are already on the Match file.  There is no guarantee, but it doesn't cost a penny for you to find out if this is possible for you.  You have nothing to lose, and we may be able to help you get back in business again, legally! Want to find out?  Just send the following form to us: Match List Inquiry Form.
  
  If you are on the Match (TMF) file, even if you think it is hopeless, you are invited to apply to one of the overall best and most cost-effective Merchant Account provider that I know about.  Clicking below will take you directly to their online form so that you can explore the detailed benefits of signing up with them:

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