Merchant collusion (MATCH reason code 11) occurs when a merchant knowingly participates with cardholders, fraudsters, or other parties in deceptive payment activities in violation of the merchant’s processing agreement, the card scheme rules, or applicable laws. This may include creating fake transactions, knowingly processing unauthorised transactions, facilitating money laundering, manipulating performance characteristics of the merchant account, or participating in schemes that intentionally circumvent card brand or acquirer rules.
Merchants involved in collusion will typically lose their merchant accounts and be placed on the MATCH List for five years, making it difficult to obtain a new merchant account in the future.
It is important for merchants to fully understand card brand regulations, engage in proper due diligence, avoid deceptive activities, and acknowledge the repercussions for non-compliance.
