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For any companies looking to use a merchant account should familiarize themselves with any important issues such as a TMF (Terminated Merchant File). When consumers fail to honor the agreed terms on their credit arrangements it’s possible for the creditor to report any defaults to credit report agencies. For example, if you have too many chargebacks (normally over 1% of your transaction numbers or dollar amount), you may get your merchant account cancelled and placed on the TMF file. It is basically the black list of the merchant industry telling all other merchant providers not to do business with you. In the future those consumers that attempt to apply for new credit will be faced with the failure of past payments which can hurt them from getting a new merchant account. The card associations use a match file which is often referred to as a terminated merchant file.
Companies view and use this terminated merchant file to prevent giving new merchant accounts to those consumers that have been blacklisted. If for some reason you have been blacklisted and when applying for a new merchant account you may need to take care of the prior issues before you will be granted the new account or based on specific conditions.
There are occasions in which some things are beyond your control which is why some merchant companies will work with you on any previous terminated match files and will help in any way they can to help get you an active merchant account pending they are able to verify that it’s something that can be resolved. Finding a reputable company that will help to get you the merchant account that you need at affordable rates is imperative to keeping your business running smoothly.
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