Why do payment processors terminate merchants?

Processors terminate merchants for reasons such as excessive chargebacks, fraud, PCI non-compliance, illegal activity, bankruptcy, or violations of their standards. The termination is often reported to MATCH (Mastercard) and/or VMSS (Visa).

What happens after my merchant account is terminated?

Your acquirer or PSP typically adds you to MATCH and/or VMSS with a reason code. New processors check these lists when you apply; being listed can block or delay approval. You can request removal by submitting a formal request to the PSP that added you.

What are MATCH and VMSS?

MATCH (Mastercard) and VMSS (Visa) are databases of terminated or high-risk merchants. Acquirers must add merchants when certain criteria are met and must check the lists when onboarding. Removal is requested through the PSP that listed you.

What are the steps to recover payment processing?

Identify the PSP that listed you; prepare an explanation of what caused the listing and what has changed; gather evidence of corrective actions; submit a formal removal request to that PSP. We help you draft and submit the request.

Terminated merchant guide

If your merchant account was terminated, you may have been added to MATCH or VMSS. This guide explains why processors terminate merchants, what happens next, and how to take steps to recover payment processing.

Why payment processors terminate merchants

Payment service providers (PSPs) and acquirers terminate merchant accounts when the risk or compliance burden becomes too high. Common reasons include:

Excessive chargebacks or disputes – too many chargebacks or disputes relative to sales volume.
Fraud – fraudulent transactions, or a fraud conviction of a principal.
PCI DSS non-compliance – failure to meet Payment Card Industry Data Security Standard requirements.
Illegal or prohibited transactions – processing transactions that violate card network or legal rules.
Laundering / factoring – submitting transactions that were not valid sales, or submitting on behalf of another merchant.
Bankruptcy, insolvency, or liquidation – inability to meet financial obligations.
Violation of standards or agreement – breaching the processor’s rules or contract.

When a termination meets certain criteria, the acquirer is required to report the merchant to MATCH (Mastercard) and/or VMSS (Visa) with a reason code. You can look up your code in our reason codes guide.

What happens after termination

After your account is terminated, the PSP or acquirer typically adds your business to the MATCH and/or VMSS database with a reason code. Your listing is then visible to other acquirers and PSPs when you apply for a new merchant account. Many will check MATCH and VMSS as part of underwriting; a listing can lead to declined applications, delays, or stricter terms (e.g. reserves, higher fees). Listings are usually retained for about 5 years unless the PSP that added you submits a removal request. See how long you stay on the MATCH list and how long you stay on the VMSS list.

MATCH and VMSS explained

MATCH (Mastercard Alert to Control High-risk Merchants) is Mastercard’s database of terminated merchant files. VMSS (Visa Merchant Screening Service) is Visa’s equivalent. Both are populated by acquirers and PSPs when they terminate a merchant under certain conditions. Card networks require acquirers to check these lists when onboarding new merchants. Neither Mastercard nor Visa removes listings on direct request from merchants—only the acquirer or PSP that added you can submit a removal request. For a full overview, see What is MATCH/VMSS? and our guides on MATCH list removal and VMSS removal.

Steps to recover payment processing

To improve your chances of getting a new merchant account or having your MATCH/VMSS listing removed, follow these steps:

Identify who listed you. Usually the PSP or acquirer that terminated your account. They are the only party that can request removal from MATCH/VMSS.
Understand your reason code. Check our MATCH and VMSS reason codes so you know why you were listed and what to address.
Document cause and remediation. Prepare a clear explanation of what led to the listing and what has changed (policies, processes, compliance, evidence).
Submit a formal removal request. Send a structured, professional request to the PSP that added you. They will review and, if satisfied, can request removal from the list. We help you draft and submit this request.

We guide you through a short questionnaire, draft a tailored removal request, and submit it to your PSP on your behalf. The risk team of your PSP will perform a review and send you the verdict. We cannot guarantee removal—the outcome is determined by the scheme or authority—but a well-prepared request gives you the best chance.

Frequently asked questions

Why do payment processors terminate merchants?: Processors terminate merchants for reasons such as excessive chargebacks, fraud, PCI non-compliance, illegal activity, bankruptcy, or violations of their standards. The termination is often reported to MATCH (Mastercard) and/or VMSS (Visa).
What happens after my merchant account is terminated?: Your acquirer or PSP typically adds you to MATCH and/or VMSS with a reason code. New processors check these lists when you apply; being listed can block or delay approval. You can request removal by submitting a formal request to the PSP that added you.
What are MATCH and VMSS?: MATCH (Mastercard) and VMSS (Visa) are databases of terminated or high-risk merchants. Acquirers must add merchants when certain criteria are met and must check the lists when onboarding. Removal is requested through the PSP that listed you.
What are the steps to recover payment processing?: Identify the PSP that listed you; prepare an explanation of what caused the listing and what has changed; gather evidence of corrective actions; submit a formal removal request to that PSP. We help you draft and submit the request.