Magic provides an online payment solution enabling businesses to accept direct bank payments from customers. This service significantly lowers processing fees, eliminates credit card chargebacks, and reduces subscription churn associated with card declines. The platform offers a simple checkout experience, guaranteed funds, and automated retry logic for failed transactions.
Funding
$3.9M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
SCFounders
Product
Problem
Businesses face high processing fees and chargebacks when accepting subscription payments via credit cards. Involuntary churn, caused by expired or lost cards, and payment failures further erode revenue.
Solution
Magic provides a bank payment platform that enables businesses to accept subscription payments through direct ACH transactions, reducing processing fees and chargebacks. By authenticating payments within the bank environment using multi-factor authentication, Magic significantly lowers the risk of unauthorized transactions. The platform addresses involuntary churn by eliminating reliance on credit cards and employs account-level data and machine learning to automatically retry and recover a substantial portion of failed payments. Magic integrates as an additional payment method, working alongside existing payment service providers and accounting systems.
Target Audience
The primary target audience includes businesses that rely on recurring payments and subscriptions, seeking to reduce costs associated with credit card processing and minimize churn.
Features
- Direct ACH payment processing for reduced fees and chargebacks
- Multi-factor authentication within the bank environment for secure transactions
- Machine learning model analyzes over 1,000 risk factors to guarantee payments
- Automatic retry logic to recover up to 70% of failed payments
- API and SDK for rapid integration with minimal technical support
- Compatibility with major commerce and accounting platforms
- Robust security monitoring with centralized log collection and analysis
- Data encryption at rest and in transit using AES 256 and TLS protocols