I fondly recall the days when a client would sit across the desk from me and write a sizable check for my fees. Now, I almost never see this happening. To be perfectly honest with you, I don’t mind a bit because of the alternatives now available.
I believe there are two main reasons for this change. These reasons also explain why it is imperative for your law practice to have online methods for your clients to pay their legal fees. First, people simply do not write many checks anymore. You can see this at gas stations and supermarkets. People are paying either with cash or with cards, not checks. Second, clients may no longer be as loyal to their attorneys as they used to be. By the time you schedule an office conference with a client, that client may have already met or spoken with another lawyer and paid that attorney’s fee online.
Providing clients with a convenient, simple method to pay your bills just makes good sense. Here are a few options:
PayPal
You’ve probably used PayPal before. PayPal allows you to send and receive money and is available for personal and business use. It is very easy to set up a payment gateway for your law practice using PayPal. The service is free to get started, and you pay a fixed percentage every time a client pays your bill.
You need to set up a business account and verify bank account details. The process can be a little tricky but is easily overcome with some persistence. I really like PayPal because it is compatible with so many web applications and plugs in to most websites. Most technology consultants can get you up and running with PayPal in no time, allowing you to take payments on your website or with your favorite practice management software.
Authorize.Net
Authorize.net is an online merchant payment gateway that allows you to securely process any credit card, and the transaction will be tied directly to a bank account of your choosing. This includes a trust account as well.
One of the best features in this merchant account is the ability to set up recurring payments. In today’s economy, many clients are unable to pay their legal bills in full, so offering clients the ability to set up monthly payments benefits both you and the client.
Square
Square allows to you accept credit cards from your mobile device. Square sends you a free reader and you can then download a free app that turns your smartphone or iPad into a mobile point of sale. Square allows you to connect your bank account, and the payment (minus Square’s 2.75 percent swipe fee) goes directly into your account.
(Interesting backstory on Square: it was founded by one of the guys who co-founded Twitter and was originally going to be called “Squirrel.”)
Use one or more of these online and mobile payment options to make it easier for clients to pay and to ease your billing woes. But be sure to read this ethics opinion on accepting credit card payments. This opinion deals specifically with unearned fees and not nonrefundable or fixed fees.