August 1st, 2018
There are a number of reasons your customer's card is declined. Maybe they don't have the funds available. Perhaps you keyed in the card number wrong. It's possible that the AVS (address verification service) failed because the billing address entered is incorrect and your gateway is set up to decline such transactions. There are a host of reasons something could go wrong.
A common source of declines that merchants rarely think about is a debit card spending limit. Most banks and credit unions have daily spending limits set up for debit cards to silo off fraud from unauthorized use. This helps protect the bank and your funds in the event that a thief goes on a spending spree. Typical limits can range from $1000-$3000 per day. If you have a large ticket product or service that is within or exceeds that range, it's quite possible that your card declines are a result of such limitations.
We have a number of clients who use our gateway that have really high tickets: waterproofing companies, HVAC companies, home improvement companies, etc. While our clients love it when customers pay with their debit card (because it's a LOT less expensive), it can create some hoops that you have to jump through in order to get paid. Let's say you're an HVAC company and you just installed a new system for Mrs. Johnson and the total bill was $6000. Most people would assume that a ticket that high is being paid with a credit card, but there are a lot of people who operate exclusively in cash (paying with money they have) OR they've arranged their own financing through their banking institution (think HELOC or personal loan) and the money is transferred or deposited into their checking account. When you try to run Mrs. Johnson's debit card for $6000 it's probably going to be declined because it's way above her daily spending limit. This can cause frustration and confusion between the merchant and their customer. Imagine the potential back and forth that happens when you tell her that her card was declined and she swears the money is in there. Both of you are right.
In situations like this, the customer simply needs to call their bank and let them know they're making a large purchase and they need their limit temporarily suspended. A simple 5-minute phone call can save both of you time and energy.
If you're collecting card numbers over the phone, it's a good practice to ask them if it's a credit or a debit card. That way, you can preemptively let them know that the transaction probably exceeds their daily spending limit and give them instructions to contact their bank if it doesn't go through.
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...
Continue Reading >
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...
Continue Reading >
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...
Continue Reading >
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...
Continue Reading >
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