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It was important to Magwitch that Pip always bear that name because it is a reminder of where Pip came from. If Pip changed his name he might forget the essence of who he is.
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Pip feels like he cannot accept any more money from Magwitch because he does not like that it comes from Magwitch. He knows Magwitch was a convict and that makes the money seem tainted.
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Herbert gives advice on the Magwitch situation saying that if he wants to stop taking Magwitch’s money then he should, but he will have to think of a sensible way to repay the debt. Herbert tells Pip to wait in telling Magwitch that he doesn’t want to take his money anymore as Magwitch might react violently.
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Magwitch accuses Compeyson of being the reason he was sent to jail. Compeyson took him on as his right-hand man to help him swindle people out of their money. We have already heard Compeyson mentioned as the man who assisted Miss Havisham’s half-brother in cheating her out of a small fortune and breaking her heart.
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Magwitch was brought up by no-one. He spent his time begging and stealing and getting into trouble. As a young man he was constantly in and out of prison. When he was taken up by Compeyson he became a skivvy to him.