Magothy Payments Overview

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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. According to the company’s CEO, Magothy Payments has redirected its business operations to target high ticket card-not-present transactions. As such, the company offers level 2 and level 3 processing to merchants who specialize in b2b transactions. Magothy Payments is one of the most positively reviewed payment processors on CPO.

Commitment to Industry Reforms

Magothy Payments 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.

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 and CEO 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 and interchange-plus as well as level 2 and level 3 processing rates. The company uses NMI as a payment gateway.
  • 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 29 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
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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

  • Retail
  • Mobile
  • E-commerce

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Magothy Payments Rates, Fees, and Costs

Key Points

Visa/MasterCard Rate Interchange + 0.50% + $0.10
American Express Rate Interchange + 0.75% + $0.10
Virtual Terminal Rate Interchange + 0.50% + $0.10
Payment Gateway Fee $15 Per Month
Monthly Minimum Fee $10
Statement Fee $10 Per Month
Annual Fee $99
Setup Fee $99 or $249
PCI Non-Compliance Fee $60 Per Month
PCI Compliance Fee Up To $12 Per Month
Early Termination Fee $0

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, an annual fee of $99, 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).

Virtual Terminal and Payment Gateway Pricing

In addition to its storefront payment processing services, Magothy Payments also dedicates a portion of its website that advertises its virtual terminal and payment gateway powered by NMI. NMI does not disclose pricing on its services but according to Magothy Payments’ CEO, the company charges a gateway fee of $15 per month plus $0.10 per transaction in addition to its standard interchange rates.

Level 2 and Level 3 Processing Services

In addition to its traditional merchant services, Magothy Payments also advertises that it provides level 2 and level 3 processing for b2b and b2g transactions. Level 2 and level 3 processing rely upon different interchange rates than traditional consumer credit transactions. Accommodating those rates requires different payment processing technology from a merchant account provider to transmit the amount of data required to facilitate the transactions. These services are reserved for b2b and b2g purchases that utilize corporate credit cards. These transaction rates are aimed at the company’s target demographic of merchants processing high ticket b2b transactions.

Free Chargeback Assistant

In an effort to assist high ticket merchants, Magothy Payments offers free chargeback assistance to merchants. The company had previously offered this service to its clients for a $50 recurring monthly fee or at a rate of $100 per hour. 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.

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.

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.

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.

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Response from Magothy Payments

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Magothy Payments Complaints & Customer Reviews

Key Points

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.

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Response from Magothy Payments

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Magothy Payments BBB Rating Summary

Key Points - BBB

Product & Service Complaints 0
Billing & Collection Complaints 0
Advertising & Sales Complaints 0
Guarantee & Warranty Complaints 0
Delivery 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 last 34 months it has been active.

What Merchants Say

Magothy has received 29 positive informal reviews to its profile. The most recent review was left by a merchant who describes the company’s effect on them being able to save on the cost of services:

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.

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.

How has Magothy Payments treated you? Tell us about it here!

Response from Magothy Payments

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Truth In Marketing & Advertising

Key Points

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.

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Response from Magothy Payments

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Magothy Payments Marketing Example

Magothy Payments Logo

Our Opinion of Magothy Payments

A Top-Rated Merchant Account Provider

Magothy Payments rates as an exemplary 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 merchant 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.

We rely on your feedback about Magothy Payments to keep this review accurate and up-to-date. Please take a minute to tell us about your experience. We and the small business owners of this world thank you!

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 and Merchant Account Services

I'm a former credit card processing sales director who left the industry because I didn't like how it takes advantage of small business owners. It feeds like a leech on businesses and thrives by imposing fees that are nearly impossible to comprehend. Seeing a need for change, I left and built this website help business owners better understand the industry, research merchant services providers, and get refunds of excessive merchant account fees. My experience of working "behind the curtain" in the industry, and using that knowledge for good, has resulted in millions of dollars returned to hard-working small business owners as well as enterprise-level companies.

From the time that I starting working in the merchant services industry to when I left to create this website, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this "insider" knowledge to myself. To lift the fog, 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 on this website.

How I Can Help You

I specialize in helping businesses get refunds of excessive fees and have recovered $1,567,184 this year alone! Submit a recent statement below to find out if you are getting overcharged. I'll take a look at it for free. If I find fees that can be refunded, hire me on contigency. I only get compensated if I put money back into your pocket.

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41 Reviews Leave Your Review for Magothy Payments Below

  1. Heather Vinson says:

    LOVE what Magothy has done for me! As a controller for a construction company they have been AMAZING at saving us money, streamlining processes, had awesome customer service, and was the best decision we have made regarding payment processing! HIGHLY recommend for anyone!

  2. Tammy D. says:

    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.

  3. 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!

  4. 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!

  5. 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.

  6. Such a great company. They have amazing customer service, easy to use programming, and the best part is they save me so much money.

  7. 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!

  8. Paula Lennox says:

    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!

  9. 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.

  10. Great customer service, and it’s so nice saving money.

  11. Oscar says:

    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.

    1. CPO Admin says:

      Hi Oscar,

      Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!

  12. 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!

  13. Lyndsay Paskoski says:

    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.

    1. CPO Admin says:

      Hi Lyndsay,

      Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!

      1. Lyndsay Paskoski says:

        Joe’s Seafood
        Severna Park, MD

  14. Ellen says:

    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+.

    1. CPO Admin says:

      Hi Ellen,

      Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!

  15. 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!

  16. Baxter Tire & Auto says:

    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.

  17. Keith Hood says:

    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.

  18. I’ve been using Magothy Payments for a while and am very satisfied with the service that is provided.
    Jaron is great

  19. Chris Mathews says:

    Perfect in every way!!! Always there if we have a question and saved us a ton!!!

    1. CPO Admin says:

      Hi Chris,

      Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!

  20. Amy riehl says:

    Great owner, great company, saved us alot of money and the online portal works great for us!*****

    1. CPO Admin says:

      Hi Amy,

      Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!

      1. Amy says:

        A1septic service of Pasadena md
        8209 varnedoe lane Pasadena md 21122
        410 437 5115
        We give 5*

  21. 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.

  22. 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.

  23. 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

  24. 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.

  25. 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.

  26. Andy Byrd says:

    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.

  27. 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!

  28. Carol Lamb says:

    We save money every month since switching to Magothy Payments. And Jaron provides excellent customer service as well!

  29. TJ Sanner says:

    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.

  30. 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!

  31. 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 !

  32. Jen says:

    This company is great and beat any other rate that we searched

    1. CPO Admin says:

      Hi Jen,

      Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!

      1. Jen rhodes says:

        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

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