For businesses within the high-risk sectors such as CBD, Kratom, Nutraceuticals, or Vaping, understanding the risks and regulations associated with payment processing is crucial. One particular challenge that these businesses may face is the potential of being placed on the Member Alert to Control High-risk Merchants (MATCH) list. This list, a creation of MasterCard, acts as a caution to payment processors about businesses that have had their credit card privileges revoked for various reasons. Being listed on MATCH can severely limit a company’s ability to process payments, effectively hampering its operations. So, what leads a company to end up on the MATCH list, and how can businesses steer clear of it?
Understanding the MATCH List
The MATCH list is employed by payment processors to screen and monitor high-risk merchants before they decide to offer them services. Inclusion in this list could make finding a payment processor willing to work with your business an uphill task.
Primary Reasons for MATCH List Inclusion
Businesses could find themselves on the MATCH list due to one or several of the following reasons:
Excessive Chargebacks: A high level of chargebacks reflects poorly on a company’s ability to manage sales and customer satisfaction. Payment processors view this as a risk signifying potential future losses.
Engagement in Fraudulent Activities: Whether it's explicit criminal activities or patterns that point towards a high risk of fraud, such indications can swiftly lead to being MATCHed.
Non-compliance with Standards: Failing to comply with set regulations, including the Payment Card Industry Data Security Standard (PCI DSS), puts a merchant at risk of getting listed.
Financial Instability: If a company shows signs of financial instability through bankruptcy, insolvency, or liquidation, it signals payment processors that the business is a risky partner.
Illegal Transactions: Conducting transactions considered illegal or dealing in products banned in certain jurisdictions are direct tickets to the MATCH list.
Avoiding the MATCH list is crucial for businesses, especially in high-risk sectors, because it ensures that they can continue to process payments and maintain operational stability.
How to Avoid Being Placed on the MATCH List
Focusing on maintaining compliance and high operational standards is key to steering clear of the MATCH list. Here are strategies that can help:
Legal Compliance: Ensuring that all transactions and products are within the legal frameworks of operational jurisdictions is non-negotiable.
Monitor and Manage Chargebacks: Implementing practices to reduce chargebacks, such as clear communication on charges and timely customer service, is critical.
Adopt Robust Fraud Prevention Measures: Implementing strong security measures and fraud detection strategies can significantly reduce the risk of fraudulent activities.
Ensure Compliance: Regular audits and adherence to industry standards, including PCI DSS compliance, are essential to avoid breaching regulations.
Maintain Financial Health: Keeping financial statements in order, and ensuring the business is financially stable, can keep red flags at bay.
Enter WAAVE: A Solution for High-Risk Merchants
For high-risk businesses struggling to navigate the complexities of payment processing and MATCH list challenges, WAAVE offers a solution. Specializing in the high-risk sectors of CBD, Kratom, Nutraceuticals, and Vapes, WAAVE provides compliance-as-a-service combined with legitimate payment processing solutions. With a focus on ensuring business continuity and keeping merchants within the bounds of legality, WAAVE acts as a protective shield against the factors that contribute to MATCH list inclusion.