I got into the payment processing industry in 2014 after a number of years as a mortgage loan originator. I found that mortgage origination is a skill set that translates well into credit card processing. There’s certainly a sales aspect to it, but more than that is the ability to see how a certain variable, i.e. an interest rate, affected certain bottom lines and financial outcomes. It didn’t take me long to recognize that many business owners had an aversion to people in my industry. The more time I spent in the field, the more horror stories I heard about expensive, non-cancellable leases, liquidated damages clauses, and cancellation fees. A month in, I almost quit. How could I make a difference in an industry with such a horrendous reputation? And then the answer hit me: One client at a time. That’s it. That’s how I could do my part. So, I took everything people hated about my industry and did the exact opposite. Instead of a long-term contract with cancellation fees and liquidated damages penalties, I offered a month-to-month agreement with no cancellation fees. Instead of expensive leases, I’d sell them the inexpensive equipment up front, or let them rent it from me for $10/mo. Instead of being transactional, I decided to become relational. I learned that keeping an existing client is much easier and much less expensive than acquiring new clients. With that focus, I was able to grow Magothy Payments into Maryland’s highest-rated merchant services provider in less than 3 years, and maintain a customer retention rate of 98%. Magothy Payments is a registered sub-ISO of BCMS (Banc Certified Merchant Services, who has an A rating with CPO), and our primary processor is Elavon. I can process through Priority Payments and iPayment as well, but Elavon has 95% of my portfolio and I only go elsewhere for special circumstances.
CPO Accreditation Pledge
I, Jaron Rice, hereby pledge to abide by the highest standard of ethics and transparency when interacting with my current and prospective merchant customers. I agree to fully understand the services, pricing and contracts that I market to prospective merchants; to promote interchange-plus pricing; to verbally disclose all provisions as they relate to pricing, terms of service, cancellation, and equipment cost; and to never sign merchants into multi-year, non-cancellable agreements or leases without their express knowledge and consent.
I understand that merchants expect openness, honesty, and integrity from me, and I acknowledge that my failure to meet these ethical obligations will result in the loss of my CPO Accreditation.