Merchant Services Reviews

Magothy Payments Reviews & Complaints

Updated:
Maintained Since: August 30, 2017
▼ 43 User Reviews
Magothy Payments Logo
Overall Score
5
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How did they treat you?

Overview

In this review of Magothy Payments, we provide a detailed overview of the company's credit card processing services. We will discuss the range of services offered, including point-of-sale (POS) systems, mobile payments, and e-commerce solutions. We will also identify the types of businesses that may benefit from these services. Additionally, we will examine client and customer reviews to highlight common trends and potential concerns. We will cover the company's pricing structure, contract terms, and specific services included. By the end of this article, you will have a clear understanding of whether Magothy Payments meets your payment processing needs.

About Magothy Payments

Founded in 2014, Magothy Payments is a merchant account provider that is capable of serving most standard-risk business types. The company is one of the most positively reviewed payment processors on CPO. Magothy Payments focuses on companies that require ‘card not present' payment processing as well as businesses that utilize lots of reoccurring billing for services or membership. Magothy's largest client base is contractors in home and commercial, but it also works with e-commerce companies, B2B, and other companies with recurring and card-on-file billing. Magothy Payments is also an Authorize.Net reseller.

Magothy Payments Homepage

Jump Ahead:

Magothy Payments Products and Services

Payment Processing

Magothy Payments has shifted its focus toward serving firearm businesses and gun merchants. With Elavon known for being supportive of Second Amendment businesses, Magothy Payments offers lower swipe rates to these merchants, who are often classified as high-risk. Merchants with a federal firearms license are not subject to high-risk premiums.

Payment Gateway and Virtual Terminals

Beyond physical payment processing, Magothy Payments provides online payment solutions. These solutions enable businesses to accept credit and debit card payments over the internet, supporting both e-commerce and brick-and-mortar businesses.

Commitment to Industry Reforms

Magothy Payments has a dedicated section on its website about Maryland House Bill 777. This section outlines the company's support for the legislation aimed at reforming practices related to early termination fees and liquidated damages clauses in merchant agreements. Signed into law in 2019 and effective from October 1, 2019, the law requires that contract terms, cancellation fees, liquidated damages, and renewal dates be clearly stated in 12-point bold font. It also caps early termination fees at $500 for contracts signed or renewed after the effective date. Magothy Payments' advocacy for this law highlights its commitment to ethical standards, appealing to prospective merchants.

Magothy Payments Customer Reviews

Here's What Their Clients Say

Customer Reviews Summary
Total Online Complaints <10
Live Customer Support Yes
Most Common Complaint N/A
Recent Lawsuits No

Highly Positive Reputation

Currently, there are no negative Magothy Payments reviews available, suggesting a clean record with no reported scams or ripoffs. Despite the abundance of online reviews, all feedback appears to be overwhelmingly positive. While many of these reviews are unverified, there is no apparent reason to doubt their authenticity. Clients commonly commend the company for its transparency and proactive customer service. If you have had an experience with Magothy Payments, we encourage you to share your review in the comments section below.

Legal History and Regulatory Compliance

No significant class-action lawsuits or FTC complaints have been filed against Magothy Payments. Dissatisfied clients seeking recourse can explore reporting their concerns to relevant supervisory organizations for resolution.

Customer Support Excellence

Magothy Payments provides live phone support to all its clients, reflecting its commitment to exceptional customer service. The consistently positive reputation of its customer support department positions the company competitively alongside the top-rated payment processors for outstanding customer service.

Magothy Payments Online Ratings

Here's How They Rate Online

Online Ratings Summary
BBB Reports 0

No BBB Complaints

Magothy Payments currently has an “A+” rating with the Better Business Bureau and has been BBB-accredited since December 2016. The company has received 0 complaints in the last 34 months it has been active.

What Merchants Say

Magothy currently has no reviews on its profile, though it previously received 2 positive informal reviews. The most recent review was left by a client who describes the company’s effect on them being able to save on the cost of services:

Magothy Payments has saved me Thousands of Dollars a year. Super Helpful when it comes to customer service. If your not using Magothy Payments chances are you are probably being overcharged and cant even get them on the phone. Magothy has the best rates available (Trust me i looked around) and extremely professional. You wont find another company this good.

This review describes traits that embody the best available merchant account providers.

An “A” Performance

Given the company’s clean complaint record, we agree with the BBB’s rating at this time.

Magothy Payments Fees, Rates & Costs

A Closer Look at The Contract

Rates & Fees Summary
Cancellation Penalties No
Monthly & Annual Fees Yes
Processing Rates Interchange + 0.50% + $0.10
Equipment Leasing Yes

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.

Magothy Payments Employee Reviews & Sales Tacitcs

Should You Work For Them?

Jobs & Marketing Summary
Uses Independent Resellers No
Telemarketing No
Misleading Marketing No
Discloses All Important Terms Yes

Inside/Outside Sales Team

Magothy Payments appears to primarily rely on referrals and networking to advertise its services. It employs W-2 and 1099 sales agents but requires its 1099 sales agents to comply with the company’s pricing guidelines. We are currently unable to locate any Magothy Payments reviews that accuse the company of nondisclosure or misrepresentation. In fact, there are a large number of positive testimonials about the company’s honesty and transparency.

This compares favorably to our list of best credit card processors.

No Deceptive Quotes

Magothy Payments prominently advertises that it offers interchange-plus pricing and does not enforce long-term contracts or early termination fees. The company’s owner has reinforced those claims by leading the charge to pass legislation in the state of Maryland that requires the client’s initials next to all major contract terms and caps all merchant cancellation fees at a total of $500. The full text of the bill, which takes effect in October 2019, can be seen here. In combination with the lack of complaints and a large number of positive merchant reviews, this is a strong indication that Magothy Payments is committed to fair dealing and honest sales practices.

If you suspect, however, that the company is overcharging you, then you can double-check your monthly bill with a third-party statement audit.

Our Magothy Payments Review Summary

Our Final Thoughts

Magothy Payments ranks as an exemplary credit card processing provider according to our rating criteria. The company emphasizes competitive contract terms while prioritizing transparency and customer service. This approach has helped it earn a strong reputation in the industry. However, our rating remains flexible, as we continue to monitor client feedback to ensure it remains accurate and reflective of real-world experiences.

Merchants are still advised to carefully review the terms of any contract they are presented with to avoid unexpected fees or obligations. For now, Magothy Payments stands out as an option on par with the highest-rated processors listed on CPO, making it a compelling choice for businesses seeking reliable and customer-focused payment processing.

Contact Magothy Payments

Contact & Customer Support
Owner and CEO Jaron Rice
Address 517 Benfield Rd, Suite 101A, Severna Park, Maryland 21146
Toll-Free Support (855) 624-6849
Customer Service [email protected]

Testimonials & Complaints

How Did Magothy Payments Treat You?

43 User Reviews

  • Kristie

    Carter's Hauling

    Jaron at Magothy Payments is the best! He has always made the process easy and is extremely responsive to any and all questions. We definitely recommend Magothy Payments to others!

  • Steve Smollon

    ClimateCare HVAC has used Magothy Payments for several years. I highly recommend Jaron Rice and his team to handle your merchant services account. Professional, prompt and offer competitive rates. If you ever get involved in a transaction dispute, you will be well served by having Jaron and his team on your side.

  • Tammy D.

    I met Jaron at a chamber event and was instantly impressed by his enthusiasm and knowledge of the credit card processing world. Since switching my dance studio’s credit card processing to Magothy Payments and Jaron I have saved so much time and money with my new system. Not to mention the stellar customer service this company gives. I highly recommend them.

  • Melissa Benson

    Jaron and the team of Magothy payments have been very professional and educated on everything we needed at Eleven Courses Catering. They were very informed and had great response time as well. Highly recommend!

  • NICHOLAS PATRICK

    Magothy Payments is AWESOME! My wife and I opened a retail CBD store and Jaron at Magothy Payments has been such a joy to work with! His support and service is unmatched and he worked hard to get us the best equipment and rates. I highly recommend them!

  • Christopher Case

    After being with a big bank for my credit card processing I met with Jaron at Magothy Payments and discussed my needs for my Home Inspection Business. I was tired of paying hefty fees and losing my profits. Magothy payments has saved me an impressive amount of money each month and has given me all of the tools and services I need to make the payment process for my customers very streamlined. I am very happy with the change and I highly recommend Magothy Payments to any business big or small who wants to service their customer but also retain a healthy ROI.

  • Misty Schulze

    Jaron reached out to me regarding a new way of accepting payment from clients but I was reluctant to make the switch because I dreaded what that day would look like. Let me just say that Jaron made this the most easy transition from my bank to his system, and a very easy system to use! Not only is he a very honest businessman but now I have what I consider, a good friend!

  • Paula Lennox

    I am new with Big Boys Rigging, taking over for someone who was here 25+ years and didn’t understand the system. Jaron is exceptional. He walked me through how to maneuver the software and answered any questions that I had. Whenever I reach out to him with questions or help, he answers right away. No matter what he is doing he takes time to help. Not only is he building and exceptional company, taking care of all of our needs, he always takes time to build relationships. Whenever I speak with him he always makes me feel as though I am his only customer – he listens – then he delivers – even though he is swamped. I would recommend all companies needing this service to reach out to Jaron! He is really a pleasure!

  • Michelle Fakeri

    Magothy Payments is 100% a top notch company. Not only am I saving tons of money each month, anytime I have a question I call and actually speak to a real person. Fast, friendly and accurate service. Magothy makes my business their #1 priority every single day.

  • Oscar

    From the moment you meet Jaron and interact with the company you know they will make processes smooth and painless. The process is upfront and very professional. The service definitely puts the mind at ease with a good relationship being first followed by a side effect of growth. Glad we made the switch and got a referral to them.

  • Bruce Spencer

    Jaron and his team at Magothy Payments have been TOP NOTCH. It is great to have that local touch when you need it, especially when you are dealing with other people’s credit cards in today’s world! Thanks for all you do to support our small business…keeping our customers safe!

  • Lyndsay Paskoski

    I was going to wait until after things have been set in stone with our business and the new way of operating before leaving a review for Magothy Payments. But, I feel the need to do it now, and I may edit as time goes on… the service that this company provides is exceptional. Jaron reached out in the middle of a family emergency to make sure that we have what we needed. He has been very easy to reach any time that we need him with a quick response rate. We aren’t using our new machine yet, because we are about to reopen for the season, but the rates that he provided us with, along with his customer service are the best.

  • Ellen

    Magothy is wonderful and they really do live by their phrase that relationships are more important than transactions. They are also constantly working to help improve their customers experience. Customer service is A+.

  • Joshua Merson

    Jaron worked with my previous employer so when I opened up my own business, I knew where to go. Jaron has always been there to answer all my whestjons with processing and walked me through step by step when setting everything up. I wouldn’t use anyone else!

  • Baxter Tire & Auto

    Jaron reached out to us and gave us pricing which was much better than where we were at that point. We switched over to Magothy payments and have had some small issues with the setup but Jaron came out several times to make sure everything was up and running smoothly. Any problems, I don’t hesitate to reach out and get a response within minute.

  • Zach Brunner

    I’ve used other merchant services and Magothy Payments is beyond the best. Not only was it the beat rate around, but they network you with other clients, and I have actually made more money from their referrals alone, then I have paid in fees. They take the time to take care of you on a personal level even after you sign, I’m yet to see another company that comes close.

  • Prompt Service, Inc.

    We have been doing business with Magothy Payments since Feb. 2017 and are very please with the personal attention and savings!!! I was never able to reach my other company without being on hold for 20 min. Thank You Magothy Payments! We look forward to continuing our relationship with you.

  • Ann Brennan

    One of my favorite things about Magothy Payments is their hand-on approach. I am too busy to try to figure out a new system or tackle a payment processing problem. Jaron and his team understand this and help me through every step of the way. Time really is money. I appreciate that Magothy gets that.

  • Andy Byrd

    Magothy Payments takes the confusion out of merchant services and delivers a straight forward approach to handling C/C processing. Their team brings integrity to an industry that most feel otherwise about. Quality people, quality service and rates that save you money! Can’t recommend them enough.

  • Denise Zucco

    Magothy Payments and Jaron Rice are great! We are a fairly new business with no prior knowledge of credit card processing and all of it’s intricacies. Jaron has walked us through every detail, each step of the way. He is always available to answers questions and to problem solve. Best of all, we are saving a lot of money too! I highly recommend Magothy Payments to any business who wants exceptional customer service and wants to save money!

  • Summer Hoder

    So grateful to have come across Magothy Payments . After 12 years of being charged ridiculous fees and not have the personable contact person to reach out when things seem “off” , this was a HUGE breathe of fresh air ! It was so easy to learn and navigate the platform and the best part is that Jaron comes with it . He’s one of a kind as a person and a businessman . Wish there were more business people like him still around !

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