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Education

Setting MATCH transaction records that were not valid transactions for
sales of goods or services between that merchant and a
straight bonafide cardholder.
Challenge flag

In most cases, laundering is self-evident but, at the
margin, there are cases in which one acquirer defines "not
valid" differently than another acquirer does. Likewise,
I have seen acquirers define Reason Code 04-Excessive
Chargebacks and Reason Code 10-Violation of Standards
differently.

The MATCH system is designed to help acquirers make
optimal decisions in adjudicating a merchant. The
MATCH system checks many different fields, including
By Ken Musante the merchant name, principal(s), DBA, phone number and
Napa Payments and Consulting address. MATCH also compares both phonetic and actual
spellings.
efore boarding a merchant and as part of the
underwriting process, all acquirers must query Through the inquiry process an acquirer compares a
the Mastercard Alert to Control High-risk pending merchant with MATCHed merchant data as well
B Merchants (MATCH) system, which confirms as any other inquiries pulled during the past 360 days.
for acquirers whether the merchant applicant has been In this way, an underwriter knows whether a merchant
previously terminated for cause. was MATCHed and how many other acquirers recently
reviewed an application from that merchant.
Similarly, if an acquirer terminates a merchant for one of Retro
the MATCH reasons, the acquirer is obligated to add the
merchant to MATCH. Thus, potential future acquirers In addition to providing critical information at the time
will be aware of the merchant’s actions and status, and of the underwriting decision, the MATCH system issues
this will help keep bad actors out. retroactive MATCHs if an acquirer queries the MATCH
system and the specific merchant queried is added to
There are 13 MATCH reason codes. Some of the reasons MATCH by any acquirer within one year of the inquiry.
are technical and binary such as 02-Common Point of
Purchase; others are more subjective such as 04-Excessive When merchants' accounts are closed for cause and
Chargebacks and 03-Laundering. MATCHed, merchants are sometimes not aware they were
placed on MATCH and only learn of this when they apply
Rare, expensive and difficult for a subsequent merchant account and are declined.

Like a bad tattoo, MATCH will follow the merchant, Should this occur, to investigate further, the merchant
principal and guarantor for five years. Removal from should ask for the acquirer or Interbank Card Association
MATCH is rare, expensive and difficult. And merchants number (ICA) for the acquirer who added the merchant,
placed on MATCH face extreme difficulty in obtaining the date of the placement, and the reason code.
merchant accounts, as well as a significant increase in
their processing fees if they do obtain one. Merchants and their sales professionals should clearly
understand the requirements placed upon them through
Merchants and payment professionals should understand their merchant agreement. They should respect and follow
the MATCH system, the MATCH reason codes and how those requirements and maintain open communication
to maintain compliance with their merchant accounts to with their acquirer through the life of their account.
avoid being added to MATCH. When closing, they should verify they are being closed
in good standing so as to avoid any mis-MATCHed-
It is important to stress that acquirers are obligated to add understanding.
a merchant to MATCH if, at the time of termination, the
acquirer has reason to believe that a MATCH condition As founder of Humboldt Merchant Services, co-founder of Eureka
exists. So while all acquirers are subject to the MATCH Payments, and a former executive for such payments innovators as
rules, some MATCH conditions, as I pointed out previously, WePay, a division of JPMorgan Chase, Ken Musante has experience in
are more subjective than others. all aspects of successful ISO building. He currently provides consulting
services and expert witness testimony as founder of Napa Payments
For example, Reason Code 03-Laundering is described and Consulting, www.napapaymentsandconsulting.com. Contact him
as the merchant was engaged in laundering activity. at kenm@napapaymentsandconsulting.com, 707-601-7656 or www.
Laundering means that a merchant presented to its acquirer
linkedin.com/in/ken-musante-us.
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