Magothy Payments Overview
A Banc Certified Merchant Services Reseller
Founded in 2014, Magothy Payments is a merchant account provider that is capable of serving most standard-risk business types. The company is a reseller of Banc Certified Merchant Services, which is a registered ISO/MSP of Elavon. The company is one of the most positively reviewed payment processors on CPO.
Magothy Payments Location and Ownership
Magothy Payments is headquartered at 517 Benfield Rd, Suite 101A, Severna Park, Maryland 21146, and Jaron Rice is the owner of Magothy Payments.
Magothy Payments Review Table of Contents
- Costs & Contract: Magothy Payments offers month-to-month contracts through Elavon with no early termination fees.
- Complaints & Service: Magothy Payments has received fewer than 10 public complaints and a high number of positive testimonials.
- BBB Rating: Magothy Payments has received 0 complaints and 28 reviews and has an “A+” rating. The company has been accredited by the Better Business Bureau since 2016.
- Sales & Marketing: Magothy Payments does not appear to rely on independent sales agents and has not received any complaints about its sales practices.
- Rates & Fees: How Merchants Got The Best Rates With Magothy Payments
Magothy Payments Statement Analyzer
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Products & Services Offered
- Debit and credit card processing
- POS solutions
- QuickBooks integration
- Gift and loyalty programs
- Analytics and reporting
- American Express OptBlue pricing
Types of Businesses Served
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Magothy Payments Rates, Fees, and Costs
|Visa/MasterCard Rate||Interchange + 0.50% + $0.10|
|American Express Rate||Interchange + 0.75% + $0.10|
|Monthly Minimum Fee||$10|
|Statement Fee||$10 Per Month|
|Gateway Fee||$15 Per Month + $0.10 Per Trransaction|
|Setup Fee||$99 or $249|
|PCI Non-Compliance Fee||$60 Per Month|
|PCI Compliance Fee||Up To $12 Per Month|
|Early Termination Fee||$0|
The standard Magothy Payments contract is a month-to-month contract through Banc Certified Merchant Services with no early termination fee, a monthly minimum fee of $10, a PCI non-compliance fee of $60, a monthly statement/support fee of $10, and a per-transaction fee of interchange plus 0.50% plus $0.10(interchange plus 0.75% plus $0.10 for American Express cards). Merchants who require a payment gateway will pay an extra $15 per month and an extra $0.10 per transaction, and additional features such as digital invoicing or mobile payments can be added within the payment gateway for further monthly costs.
Other Magothy Fees
Magothy charges 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. Merchants 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. The company also offers chargeback assistance for $100 per hour or a monthly subscription fee of $50. This service includes contacting the processor on your behalf, getting the chargeback information, preparing and submitting documentation, and writing response letters. Merchants who wish to perform these tasks on their own should understand how to fight chargebacks and win.
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 merchants with leased equipment if merchants request an equipment lease. In almost all cases, we advise merchants to purchase equipment outright rather than sign an equipment lease.
Alternate Pricing Options
Magothy offers custom pricing for high volume merchants. The company also guarantees in its contract that the merchant’s interchange-plus markup will never increase and offers a followup analysis after one month of processing with each merchant to determine whether it did in fact lower the merchant’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 merchant 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.Are you happy with your Magothy Payments fees? Tell us about them before your go!
Magothy Payments Complaints & Customer Reviews
|Total Online Complaints||<10|
|Live Customer Support||Yes|
|Most Common Complaint||N/A|
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. Merchants generally praise the company’s transparency and proactive customer service.
Magothy Payments Lawsuits
We have not found any outstanding class-action lawsuits or FTC complaints filed against Magothy Payments. Dissatisfied merchants 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 merchants. 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 BBB Rating Summary
Key Points - BBB
|Product & Service Complaints||0|
|Billing & Collection Complaints||0|
|Advertising & Sales Complaints||0|
|Guarantee & Warranty Complaints||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 2 years that its profile has been active.
What Merchants Say
Magothy has received 28 positive informal reviews to its profile. The most recent review describes a catering company’s positive experience:
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!
Feedback like this indicates that Magothy could be a solid merchant account option for caterers.
An “A” Performance
Given the company’s clean complaint record, we agree with the BBB’s rating at this time.
Truth In Marketing & Advertising
|Employs Independent Resellers||No|
|Advertises Deceptive Rates||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 complaints 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. If you suspect, however, that the company is overcharging you, then you can double-check your monthly bill with a third-party statement audit.
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 merchant’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 large number of positive merchant reviews, this is a strong indication that Magothy Payments is committed to fair dealing and honest sales practices.
Magothy Payments Marketing Example
About Phillip Parker
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
I'm a former credit card processing sales director who left the industry to start my own a small business. From the time that I starting working in the merchant services industry to when I left to write about it, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this insider knowledge to myself, so built this website to help small business owners research which service providers to use and how to save money on rates and fees. 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 here. I can help you save money with your current merchant account or help you find a new one. Message me here to get started.
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