Magna Consulting Review
As of this update, it appears Magna Consulting has completely dissolved and ceased operations. We will leave this review up from our last update for an account of the company’s previous operations.
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
Magna Consulting Customer Reviews
Here's What Their Clients Say
|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.
Magna Consulting Online Ratings
Here's How They Rate Online
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.
Magna Consulting Fees, Rates & Costs
A Closer Look at The Contract
|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.
Magna Consulting Employee Reviews & Sales Tacitcs
Should You Work For Them?
|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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