Best for
Standard-risk merchants that need payment processing services for card-not-present payments and subscriptions and/or memberships.
Specializes in
Magothy Payments specializes in providing its services to merchants that require recurring billing for services and memberships. This company has many clients in the ecommerce, B2B, and contracting industries.
Pricing Summary
Setup Fee: $99 or $249
Monthly Fee: Minimum $10
Swipe Rate: .50% + $0.10
Keyed-in Rate: .50% + $0.10
Early Termination Fee : $0
Contract Terms:
Magothy Payments is a merchant account provider that was founded in 2014.
The company is located in Severna Park, Maryland and Jaron Rice is its CEO and owner.
Previously, Magothy Payments was registered with BCMS. They have informed us of a transition to Elavon after a portfolio sale from BCMS.
Magothy Payments is a Banc Certified Merchant Services Reseller and merchant account provider. The company was founded in 2014 and works with most standard-risk merchants. It is headquartered in Severna Park, Maryland and the company’s owner and CEO is Jaron Rice.
Banc Certified Merchant Services is a registered ISO/MSP of Elavon. Magothy Payments’ main focus is on businesses that need to process card-not-present transactions, such as those that have recurring billing for services or memberships.
Magothy Payments dedicated a part of its website to supporting Maryland House Bill 777 in 2019. The purpose of this bill was to reform some payment processing practices that many people considered to be unethical. It took effect in October 2019 and stated that merchant service providers must specify contract renewal dates, liquidated damages, contract lengths, and cancellation fees in 12-point bold font on all contracts. The bill also caps early termination fees within the state at $500.
Head Quarters
517 Benfield Rd, Suite 101A, Severna Park, MD 21146
Year Founded
2014
CEO
Jaron Rice
Employees
2-10
Merchant Provider Risk Tolerance
Payment processing for payment not present, subscriptions, and memberships.
Works with merchants who require recurring billing for services and memberships.
Large clientele in B2B, ecommerce and contracting industries.
Month to month contract terms.
No early termination fee.
High risk business tolerance.
Uses outside sales to sell its products and services.
Not all fees are known.
Has a PCI compliance fee.
Equipment contracts have separate terms.
Hardware & Software
Magothy Payments’ main focus is on their own proprietary Magothy Payments Gateway, which is powered by NMI. But this company also offers compatible hardware, such as:
A USB-powered PIN pad
A mobile card reader
Software that is available includes:
Electronic invoicing
The iProcess mobile app
Integration with the WooPOS shopping cart software
Value-Added Services
Magothy Payments offers QuickBooks integration with QuickBooks SyncPay. This company can also provide Chargeback Assistance and Enhanced Data to all of its merchant customers.
Supported Payment Types & Services
Merchants doing business with Magothy Payments will be able to accept multiple forms of payment, including:
Visa
Mastercard
American Express
Discover
ACH
MOTO payments
Checks and electronic checks
Mobile wallet payments (Apple Pay, Google Pay, etc.)
Discloses All Important Terms
Yes
Public Pricing Available
Yes
Magothy Payments is very transparent about its pricing and fees. The following are all available on the company website:
Visa/Mastercard rate - Interchange + 0.50% +$0.10
American Express rate - Interchange + 0.75% +$0.10
Gateway fee - $15 per month + $0.10 per transaction
Monthly minimum fee - $10
Statement fee - $10 per month
Setup fee - $99 or $249
PCI Non-compliance fee - $75 per month
PCI Compliance fee - up to $12 per month
Pricing Model
Interchange Plus
Swiped Rate
.50% + $0.10
Keyed-in Rate
.50% + $0.10
Mobile Payment Rate
.50% + $0.10
Virtual Terminal Rate
.50% + $0.10
Monthly Fee
Minimum $10
Payment Gateway Fee
$15 per month +$0.10 per transaction
Batch Fee
Unknown
Early Termination Fee
$0
PCI Compliance Fee
$7–$12 per month
Equipment Lease Terms
Unknown
Address Verification Service (AVS)
Unknown
Application Fee
Unknown
Account Setup Fee
$99 or $249
Gateway Setup Fee
Unknown
Annual Fee
Unknown
Monthly Minimum
Unknown
Statement Fee
$10 per month
Merchants that choose Magothy Payments will sign a month-to-month contract through Elavon that carries no early termination fee. This company also caps its chargeback fee at $99 per year, and all merchants are automatically notified about chargebacks.
This company may provide services to some merchants that are in need of POS systems, which may be leased by Elavon. Merchants should pay close attention to any equipment contracts, which may have separate terms.
Contract Length
Month-to-month
Early Termination Fee
$0
Because Magothy Payments’ main service is its proprietary payment gateway, getting started as a merchant customer should be a streamlined process. Merchants that are interested can securely upload a processing statement through their website and the company will put together a proposal to meet their needs.
Most merchants should be able to begin processing payments with this company within a week, assuming all of the necessary information has been received to approve the merchant account.
Magothy Payments has a dedicated Contact Us page on the company’s website. It has a phone number and an email address for customer support. Live phone support is available to all merchants.
BBB Rating
Magothy Payments has been an accredited business with the Better Business Bureau since 2016. The company has an A+ rating with the BBB and has received no complaints within the last three years.
This company has several positive informal reviews on the BBB website. The most recent one expresses thanks to the company for saving them thousands of dollars a year on payment processing fees.
Other Online Reviews
There are many additional positive reviews for Magothy Payments online, including those on their Facebook page, Google Reviews and CPO. The company features some reviews on its website, and the reviews offer praise for excellent pricing and customer service.
This company is one of the highest rated merchant account providers in the United States. There are no pending class-action lawsuits or FTC complaints against Magothy Payments.
BBB
A+ and has been Accredited since 2011. (5 Reviews; 0 Complaints)
4.9 Stars / 65 Reviews
4.9, 79 reviews
Yelp
No Review
Total Online Reviews
Unknown
Total Online Complaints
Lawsuits
No
If you're in the market for a merchant account provider, be sure to check out our user reviews, our merchant accounts guide and our top popular merchant provider picks