Magna Consulting Overview

Magna Consulting May Have Overcharged You

If you accepted credit cards through Magna Consulting or any other credit card processing company between 2017 and 2019, recent changes to the law may entitle you to refunds of certain debit card and credit card processing errors and overcharges. See this post to find out if your were among the businesses affected and to learn how you can get your money back.

From Chyp and Securus Payments

Launched in 2016, Magna Consulting is a merchant account provider that serves most standard risk business types. The company’s website lists its active payment processing partnerships with Electronic Payments, First Data, TSYS, and Pivotal Payments. According to public documents and comments, the company was founded by Tony Lemma (a relative of Chyp/Securus Payments owner Steven Lemma) and Jeff Sego, a former vice president of inside sales at Chyp and sales manager at Securus. It is unclear whether Steven Lemma is directly involved in Magna Consulting’s day-to-day operations, but there are clearly established links between Magna and other low-rated payment processors.

Magna Consulting Location and Ownership

Magna Consulting is headquartered at 12963 SE 155th Ave, Happy Valley, Oregon 97086, not far from Securus/Chyp’s address in Portland. Tony Lemma and Jeff Sego are the co-founders of Magna Consulting.

Magna Consulting Review Table of Contents

  • Costs & Contract: Magna Consulting appears to offer a three-year contract with an early termination fee of $495.
  • Complaints & Service: Magna Consulting has received fewer than 10 public complaints.
  • BBB Rating: Magna Consulting does not have a profile with the Better Business Bureau at this time.
  • Sales & Marketing: Magna Consulting appears to hire independent sales agents and telemarketers.
  • Rates & Fees: How Merchants Got The Best Rates With Magna Consulting
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Products & Services Offered

  • Debit and credit card processing
  • Tablet POS
  • Mobile phone processing
  • Merchant cash advance
  • Sales analytics
  • Inventory management

Types of Businesses Served

  • Retail
  • Mobile
  • E-commerce
  • MOTO

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Magna Consulting Rates, Fees, and Costs

Key Points

Swiped Rate 1.00% - 4.99%
Keyed-In Rate 1.00% - 4.99%
Monthly Minimum Fee $25
Early Termination Fee $495
PCI Compliance Fee $159 Per Month
Equipment Lease Cost $109 Per Month
Equipment Lease Terms 48 Month (locked)

Variable Contract Terms

We are unable to locate any specific Magna Consulting contract terms at this time, but it is likely that the company offers similar contract terms to Chyp. At least one merchant has stated that Chyp offers 48-month, non-cancellable equipment leases that can cost up to an exorbitant $109 per month. Securus has been known to offer very similar leases to its merchants, and it is common for Securus merchants to claim that their sales agents promoted very low rates and fees while failing to disclose the company’s exorbitant equipment leasing costs.

Securus Payments’ Contract Terms

If Magna Consulting’s basic merchant account contract terms are anything like Securus Payments‘ contract terms, then they likely involve a three-year contract through First Data with an early termination fee of $495 and other miscellaneous fees, including a monthly minimum of $25, a $159 annual PCI compliance fee, and a variable monthly statement fee. Merchants should be prepared to negotiate in order to obtain favorable pricing.

Not Especially Competitive

In general, there is very little indication that Magna Consulting offers markedly different pricing or contract terms from those offered by Chyp. This would rank it well below the cheapest merchant account providers.

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Magna Consulting Complaints & Customer Reviews

Key Points

Total Online Complaints <10
Live Customer Support Yes
Most Common Complaint N/A

Moderate Complaint Total

We are currently able to locate only 1 negative Magna Consulting review, but this complaint does describe the company as a scam. It also alleges that Magna Consulting is effectively no different from Chyp and Securus in terms of its ownership team and operations. There is not a lot of merchant feedback about the company at this time, but its background provides some basis for assessing its customer service.

Magna Consulting Lawsuits

We have not found any outstanding class-action lawsuits or FTC complaints filed against Magna Consulting. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.

Magna Consulting Customer Support Options

Magna Consulting offers live phone customer support to all of its merchants. This falls short of the amount of support that we expect from top-rated merchant accounts for customer service, but Magna Consulting’s complaint record has yet to indicate severe problems.

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Magna Consulting BBB Rating Summary

No Profile Available

The Better Business Bureau does not maintain a profile for Magna Consulting at this time. We therefore will not factor a BBB rating into this review.

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Truth In Marketing & Advertising

Key Points

Employs Independent Resellers Yes
Advertises Deceptive Rates No
Discloses All Important Terms No

Telemarketing and Outside Agents

We are unable to determine the specific of Magna Consulting’s marketing approach, but it is likely that the company uses a team of telephone appointment setters combined with a large number of independently contracted outside sales agents. This marketing strategy is frequently associated with high complaint totals in the credit card processing industry and has resulted in a large number of negative reviews for Chyp and Securus. We are currently unable to locate any Magna Consulting sales complaints, but the company appears to be relatively small compared to its affiliated organizations.

Equipment Lease Marketing

Chyp’s approach to selling equipment leases appears to be in practice at Magna Consulting as well, as illustrated by a commenter below our Chyp review:

Tony Lemma started a new company called MAGNA PROCESSING. Same building as Securus. Same bullshit scam. Same terrible rates and huge leases to pay off his crappy life. Do NOT do business with them. Steve lemma his older brother finds his life and company so just think SECURUS PAYMENTS (FRAUD) when you think of MAGNA. Anything with LEMMA in it, RUN AWAY. SCAM

More of the Same?

Due to the above comment and the company’s pedigree, we do not expect Magna Consulting’s sales approach to differ significantly from that of Chyp or Securus. If you suspect that a Magna Consulting representative has included undisclosed fees in your contract, we recommend a third-party statement audit to find and eliminate hidden costs.

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Our Opinion of Magna Consulting

Connected To Low-Rated Processors

Magna Consulting receives an average rating at this time according to our criteria. The company’s rating is more a product of its corporate background and ownership team than of merchant feedback at this point, so our assessment may change over time. For now, merchants are advised to regard the company’s sales agents and contract terms with caution due to its ties to some of our worst-rated credit card processors.

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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.

How I Can Help You

I specialize in helping businesses get refunds of excessive fees and have recovered $1,567,184 this year alone! Submit a recent statement below to find out if you are getting overcharged. I'll take a look at it for free. If I find fees that can be refunded, hire me on contigency. I only get compensated if I put money back into your pocket.

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6 Reviews Leave Your Review for Magna Consulting Below

  1. Tony Lemma says:

    Hi Jay,

    After reviewing your account we do see you fully accepted the terms of your agreement. In fact we have call recordings of you verbally accepting everything needed for your POS system. Since we only make $50 a month on your account it would be impossible for you to save $750 a month else where. We would love to explain everything to you so you may better understand the programs on the market and make sure you were not duped by another company trying to get your business. Lastly, Jeff Sego your old rep more than likely has not answered, because he no longer is with Magna Consulting. If you would like to speak to someone in regards to your accounts and getting help please contact us at 866-329-8856. I hope this helps in resolving misinformation you were given by a competitor.

    1. Brian Clark says:

      Tony,

      Could you authenticate the name and location of the business you are commenting on behalf of?

      -Phillip

      1. Tony Lemma says:

        Magna consulting and we are located in Portland, OR

        Thanks!

        1. Brian Clark says:

          Thanks Tony.

          -Phillip

    2. Ron K says:

      Tony I noticed on your website https://www.getmagna.com/
      you do not have your aquiring bank listed at the bottom of the page. I am pretty sure that this is required by law.

  2. Jay Sexton says:

    one star review. Was lied to about what a $70 per month fee was actually for. I was told it was for processing fees and was normal. Turns out it was for renting a vx520 credit card processing machine that I could buy online for $100 brand new. Now I am stuck paying for this for the next 2 years. Also, I am opening a third location in which these guys will never get. I also compared the rates they said would be cheaper than the previous processor that I switched over to and they are not cheaper. I actually would be saving about $720 per year more with my old processor. Now the guy that lied to me and scammed through lies (Jeff Sego) will not answer my phone calls. Once my contract is up, I will never do business with this company again. I guess that’s how some us learn. The hard way.


    This post will help: Find and Eliminate Hidden Costs From Your Monthly Bill

    -Phillip

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