Month-to-Month Contract
The Magothy Payments merchant agreement offers a flexible month-to-month contract via Elavon without an early termination fee. It incorporates a monthly minimum fee of $10 and a PCI non-compliance fee, which is often covered by Magothy, effectively reducing it to zero for the majority of clients. The agreement specifies a monthly statement/support fee of $10 and a transaction fee of $0.10 (plus interchange at 0.75% and $0.10 for American Express cards). Magothy Payments limits chargeback fees to $99 annually, providing immediate notifications to merchants about any chargebacks.
Virtual Terminal and Payment Gateway Pricing
Magothy Payments promotes its virtual terminal and payment gateway solutions, powered by NMI, without specific pricing details disclosed by NMI. Magothy’s contract, however, lists a gateway fee of $15 per month plus $0.10 per transaction. This e-commerce service may involve additional costs such as technical support fees, batch fees, and extra transaction rates.
Other Magothy Fees
Magothy Payments charges a one-time setup fee of $249, reduced to $99 for new owner-operated businesses. This fee encompasses payment gateway customization, reporting tools setup, PCI compliance assistance, and staff training. Should clients be dissatisfied after one billing cycle, Magothy offers a full refund of this setup fee—a guarantee that, according to a company representative, has never been claimed. Chargeback fees are capped at $99 per year, with proactive notifications for merchants.
Magothy PCI Compliance Fee
Magothy’s PCI compliance fee varies with each merchant’s specific payment solution and the level of liability coverage, charged monthly at either $8 (for $100,000 in coverage) or $12 (for $250,000 in coverage) for physical terminals, and $7 (for $20,000 in coverage) for e-commerce or mail/telephone order (MOTO) solutions. Magothy encourages buying over leasing terminals, though leasing options are available upon request.
Alternate Pricing Options
Magothy provides tailored pricing for businesses with high transaction volumes and ensures their interchange-plus markup will not increase. Following a month of processing, Magothy conducts an analysis to verify if they have successfully reduced the client’s effective rate, avoiding tiered pricing models.
Worth The Cost
While some fees such as setup and statement fees are generally discouraged, Magothy Payments justifies its fee structure through significant savings and superior support for its clients. There are no complaints found regarding excessive charges or unfair contract terms. Feedback from Magothy Payments reviews frequently highlights the company’s competitive pricing and the value provided. This positive feedback contributes to Magothy Payments receiving an “A” rating in this category.
Business owners in search of competitive merchant services are recommended to review our selection of the best merchant accounts.
