Magothy Payments Review


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 and primarily serves merchants based in Maryland. Banc Certified Merchant Services is a registered ISO/MSP of Elavon, but Magothy is also capable of processing through Priority Payment Systems and iPayment if needed. Magothy Payments is headquartered at 8000 Jumpers Hole Road, Suite 209, Pasadena, Maryland 21122, and Jaron Rice is the company’s owner.

Key Points

  • Sales & Marketing: Magothy Payments does not appear to rely on independent sales agents and has not received any complaints about its sales practices.
  • Costs & Contract: Magothy Payments offers month-to-month contracts through Elavon, Priority Payment Systems, and iPayment 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 zero complaints with the Better Business Bureau and has an “A+” rating.
  • Rates & Fees: How Merchants Got The Best Rates With Magothy Payments

Magothy Payments Products and Services

  • Debit and credit card processing
  • POS solutions
  • QuickBooks integration
  • Gift and loyalty programs
  • Analytics and reporting
  • American Express OptBlue pricing


  • Retail
  • Mobile
  • E-commerce

Response from Magothy Payments

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Sales & Marketing

Key Points - Sales & Marketing

Employs Independent Resellers No
Advertises Deceptive Rates No
Discloses All Important Terms No

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.

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 testifying in support of legislation in the state of Maryland that would outlaw liquidated damages clauses, cap merchant cancellation fees at $99, and impose fines on processors that debit from merchants’ bank accounts later than 60 days after cancellation. Although the most recent version of the bill did not get signed into law, the changes sought would have established clear protections for merchants. Mr. Rice’s testimony 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.

Response from Magothy Payments

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Magothy Payments Marketing Example


Costs & Contract

Key Points - Costs & Contract

Visa/MasterCard Rate Interchange + 0.50% + $0.10
American Express Rate Interchange + 0.75% + $0.10
Early Termination Fee None
PCI Compliance Fee $8, $7.50, Or $12 Per Month
Equipment Lease Terms By Merchant Request

The standard Magothy Payments contract (available below) is a month-to-month contract through Banc Certified Merchant Services with no early termination fee, a monthly minimum fee of $25, a PCI non-compliance fee of $45, 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.

Magothy charges a one-time setup fee of at least $99 for all accounts, and this fee can increase to $249 depending on how much money Magothy is able to save the merchant. 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’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 $7.50 ($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.

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.

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. See the Magothy Payments Merchant Agreement.

Response from Magothy Payments

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Complaints & Service

Key Points - Complaints & Service

Total Online Complaints <10
Live Customer Support Yes
Most Common Complaint N/A

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, and Magothy does offer phone support to its merchants.

Response from Magothy Payments

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Key Points - BBB

Product & Service Complaints 0
Billing & Collection Complaints 0
Advertising & Sales Complaints 0
Guarantee & Warranty Complaints 0
Delivery Complaints 0

Magothy Payments currently has an “A+” rating with the Better Business Bureau and has been BBB-accredited since December 2016. The company has not received any complaints in the nine months that its profile has been active, but it has received 19 positive informal reviews. Given the company’s clean complaint record, we agree with the BBB’s rating at this time.

Response from Magothy Payments

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Magothy Payments Logo

Magothy Payments Bottom Line

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.

Phillip Parker is a former merchant services sales agent who believes the industry has been overrun by people who engage in fraud and deception in order to steal from hard working business owners. He created this website to help you avoid the bad players, save money on fees, and to get peace of mind with your merchant account. If you would like to help support his work, learn more about our cost reduction service. We can evaluate your statement, tell you exactly how much you're overpaying, and then help you dramatically reduce your fees with your current credit card processor. Looking to switch instead? See our list of the best merchant account providers.

Schedule a Consultation with Phillip

33 Reviews Leave Your Review for Magothy Payments Below

  1. 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.

  2. 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. Hi Oscar,

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

  3. 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!

  4. 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. Hi Lyndsay,

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

  5. 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. Hi Ellen,

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

  6. 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!

  7. 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.

  8. 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.

    1. Hi Chris,

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

    1. Hi Amy,

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

  9. 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.

  10. 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.

  11. 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.

  12. 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.

  13. 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.

  14. 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!

  15. 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.

  16. 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 !

    1. Hi Jen,

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

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