Serving Both Standard- and High-Risk Business Types
Founded in 2012, MagicPay is a Boca Raton, Florida-based merchant account provider that serves both standard and high-risk business types as well as offshore merchants. The company is a reseller of iPayHere (formerly known as SwitchPay), but it is also partnered with other processors in order to serve its high risk accounts.
MagicPay Location and Ownership
MagicPay Review Table of Contents
- Costs & Contract: MagicPay offers interchange-plus and tiered pricing and a month-to-month contract through Switch Commerce with no early termination fee.
- Complaints & Service: MagicPay has received fewer than 10 public complaints.
- BBB Rating: MagicPay (as MagicPay Merchant Services, LLC) has an “A+” rating with 0 complaints and 1 review. The company has been accredited by the Better Business Bureau since July of 2019.
- Sales & Marketing: MagicPay does not appear to hire independent sales agents and has not received any complaints about its sales practices.
- Rates & Fees: How Merchants Got The Best Rates With MagicPay
Types of Businesses Served
- High risk
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MagicPay Rates, Fees, and Costs
|Swipe Rate||2.39% + $0.20|
|Keyed-In Rate||3.49% + $0.20|
|Interchange-Plus Rate||Interchange + 0.50% + $0.10 - $0.21|
|VirtualPay Rate||2.20% - 3.20% + $0.30|
|VirtualPay PRO Rate||Interchange + 0.75% + 0.20|
|VirtualPay Plan Fee||$15 Per Month|
|VirtualPay Pro Plan Fee||$30 Per Month|
|Starter Plan Fee||$10 Per Month|
|Premier Plan Fee||$20 Per Month|
|Wireless Terminal Plan Fee||$30 Per Month|
|Early Termination Fee||$0|
|PCI Compliance Fee||Undisclosed|
The standard MagicPay contract is a month-to-month agreement through iPayHere that can be cancelled at any time without an early termination fee. The company’s pricing depends on whether a merchant opens a mobile account, a retail account, an all-in-one POS account, an internet account, or an offshore/high risk account.
Mobile Processing Pricing
Mobile MagicPay merchants can choose either the “Starter” or the “Premier” plan. The Starter plan costs $10 per month and charges a rate of interchange plus 1% plus $0.10 per transaction. The Premier plan costs $20 per month but offers a lower rate of interchange plus 0.5% plus per transaction. MagicPay states that the Starter plan is best for merchants processing under $3,000 per month, while the Premier plan will be better suited for merchants processing more than $3,000 per month.
Retail Processing Pricing
Retail merchants who sign up though MagicPay can choose the PC & iPad POS plan, the retail terminal plan, or the wireless terminal plan. Merchants who choose the PC & iPad POS plan will accept credit cards at their businesses using secure software that runs on a PC or iPad. This plan costs $10 per month and charges interchange plus 0.5% and $0.05 per transaction. The retail terminal plan offers merchants a conventional counter top credit card terminal and costs $20 per month as well as interchange plus 0.5% and $0.05 per transaction. The wireless terminal plan costs $30 per month and charges a slightly higher per-transaction fee of interchange plus 0.5% and $0.10. Retail merchants may also opt for tiered per-transaction pricing of 1.69% plus $0.20 (swiped qualified), 2.39% plus $0.20 (swiped mid-qualified), or 3.49% plus $0.20 (keyed qualified, keyed mid-qualified, or both swiped and keyed non-qualified). Merchants are generally advised to choose interchange-plus pricing because it is the most transparent model available.
Virtual Terminal and Payment Gateway Pricing
E-commerce merchants with MagicPay can choose the “VirtualPay” plan or the “VirtualPay PRO” plan. The VirtualPay plan costs $15 per month and charges a per transaction rate of 2.2% plus $0.30 (qualified and mid-qualified) and 3.2% plus $0.30 (non-qualified). The VirtualPay PRO plan costs $30 per month but offers a lower per-transaction rate of interchange plus 0.75% plus $0.20.
High Risk Processing Pricing
Offshore and high risk merchants will receive custom pricing that, as a general rule, will be more expensive than the company’s standard-risk accounts. Merchants operating in high risk sectors may find the best rates and service through the top-rated high risk merchant account providers. MagicPay does not mention whether it charges a PCI compliance fee on any of these pricing plans, but it may include PCI compliance in its monthly fees for each plan. Considering MagicPay’s month-to-month agreements with broad pricing flexibility, we have given the company an “A” in this category.Are you happy with your MagicPay fees? Tell us about them before your go!
MagicPay Complaints & Customer Reviews
|Total Online Complaints||<10|
|Live Customer Support||Yes|
|Most Common Complaint||N/A|
Nearly Clean Complaint Record
We are unable to locate more than one negative MagicPay review at this time, which is a strong indicator that the company is not a scam or a ripoff. This clean complaint record may be due to excellent pricing and service provided by MagicPay, or it may be that the company has yet to grow its merchant base to a size that would generate widespread complaints. It’s also possible that come complaints intended for MagicPay are instead filed against iPayHere or its former name of Switch Pay. We have no reason to believe that this is happening, so we’ve given MagicPay an “A” in this section for the time being.
We have not found any outstanding class-action lawsuits or FTC complaints filed against MagicPay. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
MagicPay Customer Support Options
MagicPay offers 24/7 customer support by phone to its merchants and its support team appears to operate at a level that is comparable even to top-rated credit card processors for great customer service.
MagicPay BBB Rating Summary
Truth In Marketing & Advertising
|Employs Independent Resellers||No|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||Yes|
No Sales Complaints
MagicPay appears to market its services via an internal sales team and traditional advertising. There is no evidence at this time that the company utilizes independently contracted sales agents, and we cannot find any MagicPay complaints that mention deceptive contact by the company’s sales team.
The MagicPay website quotes a number of different per-transaction rates under the company’s interchange-plus and tiered pricing plans, and it appears that these rates are transparently listed. Given the company’s straightforward pricing and clean complaint record, we have assigned it an “A” in this category. However, if you suspect that MagicPay is charging you undisclosed fees, we recommend seeking a third-party statement audit.
MagicPay Marketing Example
About Phillip Parker
Thank you for reading my review. I hope that it has helped you with your research.
Why I'm Qualified to Write About Credit Card Processing and Merchant Account Services
I'm a former credit card processing sales director who left the industry because I didn't like how it takes advantage of small business owners. It feeds like a leech on businesses and thrives by imposing fees that are nearly impossible to comprehend. Seeing a need for change, I left and built this website help business owners better understand the industry, research merchant services providers, and get refunds of excessive merchant account fees. My experience of working "behind the curtain" in the industry, and using that knowledge for good, has resulted in millions of dollars returned to hard-working small business owners as well as enterprise-level companies.
From the time that I starting working in the merchant services industry to when I left to create this website, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this "insider" knowledge to myself. To lift the fog, I've reviewed hundreds of companies, read thousands of user reviews, and learned the pricing tricks of every provider. If you have questions about credit card processing, you can find the answers on this website.