June 12th, 2018
First off let me say that this is not a knock on the POS itself, its manufacturers, or anyone who uses it. However, it is most certainly an indictment of the ISO's (independent sales organizations) and MSP's (merchant services providers) who push business owners to lease this product.
In the payment processing world, Clovers are hot right now. And I mean HOT. They're sleek, sexy, and capable. Best of all, they're trendy. They're the big (or little) thing that the stylish deli/bar/coffee shop wants to have to further the idea that they're cutting edge and ahead of the times. Add the new Clover Mini to the mix and you're able to get a powerful mini POS for about $400.
Oh, wait. You didn't know you could get it for $400? That's right. That's news to you since your MSP sucked you into a $100/mo lease for the next 48 months. Yeah, $4800 to lease a piece of hardware that you could own outright for $400. Don't believe me? Google it. So, why would your MSP rather you lease your equipment? Well, because they're greedy. If they sell you a Clover for $400, they'll make about $50 in profit. If they lease it to you, they'll sell the ownership rights to a leasing company for about 50% of the total value (it's worth less if the owners credit is poor). So, the short answer is they'd rather make $2400 in upfront cash as oppose to $50, even if it means ripping you off.
In addition to the expensive lease, the software suite you need costs an additional $35/mo. To make matters worse, the manufacturers of Clover brilliantly (or deviously, depending on your perspective) decided to make it so that the unit couldn't be reprogrammed by a third party. You'd need to ship it back to manufacturer and have it refurbished. That means you cannot switch processors and bring your Clover with you. This decreases the likelihood of you switching, even if you can find a better bargain elsewhere. It's like a shiny set of golden handcuffs.
Again, the Clover system itself is pretty neat and has a lot of useful features for many different kinds of business owners. But, if you're considering leasing one, don't. Pony up the cash and purchase it outright. You'll be happy you took my advice.
March 4th, 2019
Maryland House Bill 777 *UPDATED*
On April 30, 2019. Governor Hogan signed HB777 into law. To read more about the bill visit www.magothy.biz/hb777 Maryland’s HB777 and its senate companion SB694 were designed to bring more transparency to the payment processing industry in the great state of Maryland. The Problem: Many small businesses get locked...
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January 17th, 2019
Cause For Advocacy
Have you ever heard the saying, “One bad apple spoils the barrel?” It’s true, ya know. An overripe, spoiled apple will emit significantly higher levels of ethylene gas causing other apples around it to overripen as well. We often use this saying or variations of it to describe how low character people can be bad influences on...
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November 7th, 2018
The Flat-Rate Unicorn
There are a number of companies advertising simple, flat-rate pricing. Many times it's neither simple nor flat. This pricing model gambles on the kinds of cards a business is accepting. One popular "flat-rate pricing" company advertises a simple "2.75%" per swipe. That sounds great, right? Well, not really. Because...
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September 30th, 2018
Do you want me to regret bringing you on as a client?
Sometimes, you have to ask your prospective clients tough questions. When you work in a retention industry like I do, the only thing worse than not landing an account is landing the account with margins so thin you're basically working for free. In today's economy, we're seeing the commoditization of almost everything. This is due to a...
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Magothy Payments came as a recommendation from our accountant who realized how much we were paying with our old company. Jaron made the process very easy by reviewing our old statements to see if there was any room for saving. After our consultation, he offered to use Magothy payments for one month and if we didn't see any savings we had the option to walk away without losing anything. Jaron has been upfront from the beginning and has been there promptly to address any concerns we have with our system. I highly recommended Magothy Payments!
Dr. Hetal Rana, Eye Associates
Worldwide Waterproofing changed payment processing companies in 2016 after 14 years of being with the same provider. We had a great initial meeting with Jaron and felt comfortable with his knowledge and expertise. Working with a local company that is easily accessible made sense for us. We hadn't really tracked our credit card costs over the last several years, so we were BLOWN AWAY when we saved more than $2000 in our first month alone. This was the by far the best decision we could have made. We get our deposits next day, the platform is easy to use, and we finally have a relationship with the company funding our transactions. I couldn't recommend Magothy Payments enough.
Summer Hoder, Worldwide Waterproofing
Magothy Payments has been GREAT for our business. We get calls from merchant services vendors every day. But when you need service from THEM, they are nowhere to be found. This never happens with Jaron and his team. Their personalized service is outstanding, and our costs are down too! I highly recommend you consider Magothy Payments for your business.
Bruce Spencer, Walt Eger's Service Center
The team at Magothy Payments is nothing short of SPECTACULAR and I can't recommend them enough! If you are tired of wondering if you are paying too much for your credit card processing and harassing daily calls about saving you money, I can assure you that Magothy Payments is your BEST option. Local, Personal and Professional, their integrity shines through at every service opportunity. The statements are transparent, the rates are the lowest, and they are focused on a long-term relationship that will save you money. Everyone that I have referred comes back to me very satisfied and glad that they made the change.
Andy Byrd, Victory Awards & Promotions