This week we had the pleasure of hearing a presentation from Jaron Rice, owner of Magothy Payments. He explained what he has been up to with the House of Delegates and how it will help Maryland Business Owners.
Jaron Rice, owner and operator of Magothy Payments, a Pasadena based company, is working with Maryland Delegate Seth Howard to sponsor House Bill 1400.
House Bill 1400 is meant to prohibit service agreements between a credit card processor and a business entity from including provisions authorizing liquidated damages or specifying exorbitant fees for the termination of services. Instead the cancellation fee will be capped $99. It goes further in prohibiting said credit card processor from debiting or accessing the bank account of the business entity after a 60 days and authorizes the Commissioner of Financial Regulation to establish penalties for violating this Act.
This bill came about when Jaron Rice was introduced to Delegate Seth Howard. As the owner of Broadleaf Tobacco in Severna Park, Howard had been referred to Rice as a potential client. As the two spoke about their respective businesses, the subject of the unethical practices of many payment processing companies.
Jaron Rice said, “We talked and talked about things that I had seen in the field, customers getting ripped off, being taken advantage of, etc. After telling him about an especially egregious case I'd witnessed I said, "That should totally be illegal."
Howard then asked Rice if he would be interested in helping draft a bill to protect Maryland business owners from this practice. Shortly thereafter the two began working together to draft the bill. On March 10th, Rice is scheduled to speak before the House Finance Committee. On March 21st he will return to Annapolis to testify before the Senate Finance Committee on the senate version of said bill.