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A character matchup, or a counter, is a percentage-based system used to predict how two characters would fare against each other at the theoretical highest level of play using the current tournament settings. Just because a match is unfavorable towards a given character does not mean that the match is unwinnable, as player skill factors much heavier into the matchup than the actual abilities of the characters themselves. That being said, when two players of equal skill use two characters that do not have an even matchup, it is not unreasonable to assume that overall, the more favorable character will win more often than the unfavorable one.
A Matchup Chart is a grid which depicts all of the potential character match ups in the game. Often times, this type of chart can be used to directly influence the creation of a tier list, as was the case with both of the v0.7 tier lists.
Below is the Smash Flash Back Room's official chart for Super Smash Flash 2 v0.7, created on May 19, 2011. Matchups are ranked on a 0-100 scale, with the number on the chart representing the matchup of the character on the left in relation to the character on the top. For example, Goku would have a 55-45 advantage over Peach. Matchups for later versions are heavily disputed, and a definitive chart has not yet been made.