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Tell us about your experience with Magothy Payments in the comment section below.
(855) 624-6849Company Overview
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 Payment Processing
Magothy Payments has started focusing on firearm businesses and gun merchants. Elavon is also rated as very friendly to 2nd Amendment companies. This allows Magothy Payments to offer lower swipe rates to merchants who are typically considered high-risk. As long as they have their federal firearms license, Magothy won’t charge any high-risk premiums.
Payment Gateway and Virtual Terminals
In addition to physical payment processing, Magothy Payments offers online payment solutions. This allows businesses to accept credit and debit card payments over the internet, providing the necessary infrastructure for e-commerce businesses, or brick-and-mortar businesses looking to expand online.
Commitment to Industry Reforms
Magothy Payments has dedicated a portion of its website to Maryland House Bill 777. The section details the company’s support of the legislation, which sought to reform practices contractually enforcing early termination fees and liquidated damages clauses in standard merchant agreements. The bill was signed into law in 2019 and took effect on October 1 of that year. Under the new law, the length of the contract, the cancellation fee(s), liquidated damages, contract renewal date must be apparent and written into a merchant agreement in 12-point bold font. Furthermore, the bill caps early termination fees at $500 for contracts signed on or renewed after October 1, 2019. The company’s advocacy on behalf of the passage of this law conveys its standard of ethics to prospective merchants considering their services.
Location & Ownership
Magothy Payments is a registered ISO/MSP of Elavon and is headquartered at 517 Benfield Rd, Suite 101A, Severna Park, Maryland 21146. Jaron Rice is the owner and CEO of Magothy Payments.
Magothy Payments Pros and Cons
pros
- Many Positive Reviews
- Contract Terms Can Lead to Saved Money
cons
- None
Table of Contents
- Costs & Contract: Offers month-to-month contracts through Elavon with…
- Complaints & Service: Complaints number fewer than 10 on…
- BBB Rating: Has received 0 complaints and 0 reviews and has an “A+” rating with…
- Sales & Marketing: Does not appear to rely on independent sales agents and has not…
Magothy Payments Customer Complaints & Reviews
Here's What Users Think
Complaint Summary
|
Total Online Complaints
<10
|
Live Customer Support
Yes
|
Most Common Complaint
N/A
|
|
Recent Lawsuits
No
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Clean Complaint Record
We are unable to locate any negative Magothy Payments reviews at this time, and there is no indication that the company is a ripoff or a scam. As noted above, there are many reviews of the company online, but they are unanimously positive. Most of these reviews are unverified, but we have no reason to suspect that any of them are fake. Clients generally praise the company’s transparency and proactive customer service. If you have your own Magothy Payments review to make, please do so in the comments below.
Magothy Payments Lawsuits and Fines
We have not found any outstanding class-action lawsuits or FTC complaints filed against Magothy Payments. Dissatisfied clients who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
Magothy Payments Customer Support Options
Magothy offers live phone support to all of its clients. The positive reputation of its customer service department indicates that it is competitive with any of the top-rated payment processors for great customer service.
Magothy Payments Customer Service Number
- (855) 624-6849 – Toll-Free Support
Other Support Options
- Customer service email address at [email protected]
Magothy Payments BBB Rating and Report
Our Better Business Bureau Profile Assessment
BBB Summary
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BBB Reports
0
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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 and Rates
A Closer Look at the Contract
Cost Summary
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Cancellation Penalties
No
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Monthly & Annual Fees
Yes
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Processing Rates
Interchange + 0.50% + $0.10
|
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Equipment Leasing
Yes
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Month-to-Month Contract
The standard Magothy Payments merchant agreement is a month-to-month contract through Elavon with no early termination fee, a monthly minimum fee of $10, a PCI non-compliance fee of $75 (It should be noted Magothy covers this fee for most of its clients, effectively making it a 0$ cost for noncompliance), a monthly statement/support fee of $10, and a per-transaction fee of $0.10 (interchange-plus 0.75% plus $0.10 for American Express cards). Magothy Payments also caps its chargeback fee at 99$ per year, with all chargebacks automatically notified to merchants.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, Magothy Payments also dedicates a portion of its website to advertising its virtual terminal and payment gateway, powered by NMI. NMI does not disclose pricing on its services but Magothy Payments’ standard contract lists a gateway fee of $15/mo + 10 cents per transaction. Additional rates and fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
Other Magothy Fees
Magothy Payments fees include a one-time setup fee of $249, but this can be lowered to $99 for new owner-operator businesses. This fee covers payment gateway customization, reporting tool setup, PCI compliance assistance, and employee training. Clients who are dissatisfied with the company’s service after one billing cycle can request a full refund of this setup fee, although a company representative has stated that this has never occurred. Magothy Payments caps its chargeback fee at 99$ per year, with all chargebacks automatically notified to merchants.
Magothy PCI Compliance Fee
Magothy’s PCI compliance fee varies according to each merchant’s payment solution and level of liability coverage. This fee is charged monthly and can total either $8 ($100,000 in coverage) or $12 ($250,000 in coverage) for physical terminals or $7 ($20,000 in coverage) for e-commerce or MOTO solutions. In addition, the company prefers to sell rather than lease terminals, but it will provide clients with leased equipment if they request an equipment lease. In almost all cases, we advise business owners to purchase equipment outright rather than sign an equipment lease.
Alternate Pricing Options
Magothy offers custom pricing for high-volume businesses. The company also guarantees in its contract that their interchange-plus markup will never increase and offers a follow-up analysis after one month of processing with each client to determine whether it did in fact lower the client’s effective rate. A company representative has stated that Magothy Payments does not offer tiered pricing.
Worth The Cost
We often recommend against signing up for some of these fees, such as statement fees, annual fees, and setup fees, but Magothy Payments appears to genuinely attempt to offset its fee structure with high savings and quality support. We are unable to locate any client complaints that mention excessive charges or unreasonable contract terms from the company. In fact, the available Magothy Payments reviews that mention pricing praise the competitiveness of the company’s prices and the savings they’ve seen through the company. The overwhelmingly positive consensus among merchants has earned Magothy an “A” rating in this category.
We also encourage business owners to check out our list of the providers of the best merchant accounts.
Magothy Payments Jobs and Employment
Hiring Standards and Ethical Marketing Assessment
Key Points
|
Uses Independent Resellers
No
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Telemarketing
No
|
Misleading Marketing
No
|
|
Discloses All Important Terms
Yes
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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.
Magothy Payments Review Summary
Our Final Thoughts and Opinions
Magothy Payments rates as an exemplary credit card processing provider according to our rating criteria. The company advertises competitive contract terms and appears to place a high premium on transparency and customer service. Our rating may be subject to change depending on client feedback, and merchants are still encouraged to scrutinize the terms of any contract they are asked to sign. For now, Magothy is an option on par with the highest-rated processors on CPO.
If you found this article helpful, please share it!
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.
Tomi O'Connor
Such a great company. They have amazing customer service, easy to use programming, and the best part is they save me so much money.
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.
Tomi O'Connor
Great customer service, and it’s so nice saving money.
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.
CPO
Hi Oscar,
Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!
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.
CPO
Hi Lyndsay,
Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!
Lyndsay Paskoski
Joe’s Seafood
Severna Park, MD
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+.
CPO
Hi Ellen,
Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!
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.
Keith Hood
Magothy Payments have been excellent. Jaron has saved me thousands of dollars. Jaron is hands on and is always there if needed. Highly recommend Magothy Payments and Jaron.
Laura Zeitz
I’ve been using Magothy Payments for a while and am very satisfied with the service that is provided.
Jaron is great
Chris Mathews
Perfect in every way!!! Always there if we have a question and saved us a ton!!!
CPO
Hi Chris,
Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!
Amy riehl
Great owner, great company, saved us alot of money and the online portal works great for us!*****
CPO
Hi Amy,
Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!
Amy
A1septic service of Pasadena md
8209 varnedoe lane Pasadena md 21122
410 437 5115
We give 5*
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.
Trevor W Ashley
Jaron reached out to me several times offering his services and I was hesitant to switch. Ultimately gave it a shot and made the switch and noticed immediate reduction in my credit card processing fees.
Tony Ferrer
What impressed me the most about Magothy Payments was the transparency of the fee structure and the commitment to customer service.
Tony Ferrer
Warriors of Grace Karate
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!
Carol Lamb
We save money every month since switching to Magothy Payments. And Jaron provides excellent customer service as well!
TJ Sanner
Magothy is great. Jaron makes merchant services easy and is a trustworthy gentleman. This is refreshing for the merchant service industry as a whole. I would recommend Magothy to any business.
Alexander Fakeri
Magothy Payments is the only solution for a business that is looking for reliable, trust worthy, and quality business provider! We are ecstatic that we made the move!
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 !
Jen
This company is great and beat any other rate that we searched
CPO
Hi Jen,
Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!
Jen rhodes
This company Beat any other rate that we searched including a rate given to us by our own bank. We are located in Pasadena Maryland