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Supplement Sellers; How to Get Off MATCH? Is It Possible?
If you’re reading this, you probably ended up on MATCH. Most people don’t know what MATCH is until they get notified that they officially became a member.
Having your merchant account listed on MATCH means that you’ve been classified as a high risk merchant. Maybe some of your funds are being held up and your current payment processor doesn’t want to handle your transactions anymore.
That’s bad news for business…
Read this article to find out how to save your business, and get back to trading soon.
What Are Chargebacks?
A chargeback can be seen as a refund. It’s either initiated by the bank or the merchant. Usually as a result of a disputed purchase.
An example of this would be if you purchased something and didn’t receive it. Let’s say you tried to get in touch with the seller but they never responded to you. So, you ask your bank to step in. Your bank will give you the money back and deal with the merchant.
It works the same way for your clients. At any point, they can dispute a payment they made to you. As long as it was made using a debit/ credit card.
Why Do Customers File Chargebacks?
Here are the main reasons why customers file chargebacks against supplement providers.
They Didn’t Realize They Were Subscribing
This is the main issue with supplement subscriptions.
The customer thinks they’re just making a one-off purchase, when in reality they’re subscribing to a regular delivery. So, when their next payment is taken, they feel cheated and file a chargeback immediately without even contacting you.
They Were Double-Billed
Mistakes and glitches happen.
Whether you process payments manually or through a system, there’s always a chance that you’ll incorrectly charge a customer.
While it’s 100% innocent on your side, it looks bad to the customer. Again, they feel cheated and want a refund.
They Feel Disappointed
This usually happens if the product isn’t of good quality or as described.
For example, imagine that your customer buys supplements, takes them, and doesn’t feel the desired effects. They’ll feel disappointed and want their money back.
They Get Confused
If your business name is different from your website name, the customer can get confused when they look at their bank statement. If they make a lot of online purchases, it’s easy for them to forget that they bought from you. They’ll call their bank and report the transaction as unauthorized.
They’re Scamming You
This doesn’t happen a lot, but it’s still something to be aware of.
Unfortunately, as a merchant, you’re vulnerable to being scammed by customers. They’ll make a purchase and file a chargeback, claiming they never received the item, even if they have. It’s your word against theirs, unless you have proof of delivery.
What Happens if You Have Too Many Chargebacks?
Payment processors keep a close eye on merchants. If your merchant account gets flagged for having too many chargebacks then you’ll lose your merchant account and join the blacklist.
Being listed on MATCH (blacklist) doesn’t mean that you’re banned from taking payments online. It just means that most payment processors won’t want to deal with you, because you’re flagged as high risk.
What Is a Merchant MATCH List?
MATCH (Member Alert to Control High-Risk) list is a database which was introduced by Mastercard as a means of managing fraudulent merchants. It’s the replacement of TMF (Terminated Merchant File). This is the blacklist. All payment processors can look you up on this list before agreeing to do business with you.
What Does It Mean if the Merchant Is Put on MATCH?
When you join the MATCH list, you’re marked as a high-risk merchant. So, most payment processors won’t want to do business with you.
On top of that, you face the risk of having to cover the high chargeback fees which your payment processor incurred due to the chargebacks filed against you.
Your funds can also be withheld for months, to cover the fees, and in case future chargebacks are filed against you by other customers.
That’s a surefire way to end any business.
How Many Chargebacks Will Get Me Blacklisted?
Here’s the official snippet which defines how many is too many.
Excessive Chargebacks: With respect to a Merchant reported by a Mastercard Acquirer, the Merchant’s chargebacks in any single month exceeded 1% of its Mastercard sales.
That’s just 1 transaction per 100. Not much room for mistakes.
How Do I Get My Merchant Account Removed From Match?
The bad news is that it’s not easy to get off MATCH. Your bank decides, and usually they won’t remove you from the blacklist. After five years, you’ll automatically be removed.
What Can I Do After My Merchant Account Is Blacklisted?
You probably don’t want to wait five years until you’re no longer on MATCH, so here’s what you can do.
High-Risk Payment Processor
There are payment processors out there, who specialize in high-risk merchants. They’ll be willing to do business with you.
Yes. Of course there’s a catch!
Since you’re a high risk merchant, you’ll pay a lot more in fees than you did before.
The payment processor might also ask for additional guarantees and have tricky terms & conditions. Like high fees for future chargebacks, etc.
This is understandable, the payment processor needs to take additional precautions to protect themselves.
Incorporate a New LLC
You can incorporate a new LLC and start fresh. It’s a cheaper alternative to a high-risk payment processor.
It’s best to incorporate in a state that gives you more privacy like Wyoming, Nevada, Delaware or New Mexico.
Are You a Nomad? Incorporate Your LLC Remotely Here.
After incorporating you’ll have to open a new business bank account and apply for a merchant account for your new LLC.
How to Prevent Chargebacks
Once you’re back to business, it’s important that you don’t end up on the MATCH list again. Here are the best practices for supplement sellers to avoid chargebacks.
Make sure that your customer understands how much they’ll be charged and whether it’s a one-off payment or a subscription payment.
Remember, 1 chargeback per 100 transactions doesn’t leave you a lot of room for mistakes. You have to do your best to avoid chargebacks.
If you offer a supplement subscription service, you have to make the cancellation simple. Make it as easy as sending an email. If you make cancellation easy, customers won’t feel like they have to ask the bank to step in.
Your customer service should respond within a reasonable time, always trying their best to resolve the customer’s issues. Even if you think the customer is in the wrong, it’s better to lose the value of their purchase than to get blacklisted.
The worst thing you can do is ignore the customer or avoid resolving the issue.
Look at the details and make sure that the whole payment system behind your business is 100% functional and mistake-proof. You don’t want to double-bill your customers or take a subscription payment after they cancelled.
Form Your New LLC Today!
Are you ready to get back to business?
Start the process of LLC formation today.
Simply fill out a form and we’ll take care of the rest. It’s fast and 100% remote.