The terminated merchant file is something that needs to be understood by any business that processes credit card payments through a merchant account. Whenever you have a merchant account you are running the risk that you will end up on this terminated merchant file.
When you are thinking about the terminated merchant file, you really have to think of it as a banned list in a sense. The terminated merchant file is basically a list of all merchant accounts that have been banned from doing any type of credit card processing in any way shape or form.
When you do something wrong, a financial institution such as Visa or Mastercard will mark you as a violator for whatever offense you or your merchant account has created. When this occurs, you are going to be placed on this terminated merchant file. Once you are on this file, that means that the merchant account can no longer be used to do any type of credit card processing. In a sense it will basically cripple all credit card sales abilities.
When you have a merchant account operator they will work to get you removed from this list. That is the only way that you will be able to fix your problem from being stuck on the banned list to begin with. In order to get you off of the terminated merchant file you will need to be removed directly by the financial institution that put you there in the first place.