Payment Processing Solutions for Lawyers and Law Firms

Law firms have unique payment processing needs. Unlike a traditional retail business, attorneys may collect retainers, bill clients by the hour, accept installment payments, send invoices, or receive payments for substantial legal fees.

That means choosing a payment processor should involve more than simply comparing transaction rates.

Law firms need a payment solution that makes it easy for clients to pay while giving the firm the flexibility to manage different billing arrangements efficiently. Cobalt Payments provides payment processing solutions designed to help professional service businesses accept payments securely, streamline collections, and control processing costs.

The Unique Payment Needs of Law Firms

Legal billing can be more complicated than charging a customer for a conventional product or service.

Depending on the practice, a law firm may need to accept:

• Initial retainers or advance payments
• Hourly legal fees
• Flat-fee arrangements
• Recurring or scheduled payments
• Installment plans
• Invoice payments
• Payments over the phone
• Online payments
• In-person credit and debit card payments

A payment system that works well for a retail store may not provide the flexibility a law office requires.

Cobalt can help law firms establish payment processing solutions that support multiple ways of accepting payments without forcing the firm into a one-size-fits-all system.

Make It Easier for Clients to Pay Legal Bills

Clients increasingly expect convenient electronic payment options.

A client receiving a $3,000 or $5,000 legal bill may not want to mail a check or visit the office to make a payment. Giving clients a convenient electronic payment option can simplify the process for both the client and the firm’s administrative staff.

Depending on the firm’s setup, Cobalt can provide solutions for accepting payments through electronic invoices, online payment links, virtual terminals, and traditional payment terminals.

Instead of spending valuable staff time repeatedly following up on unpaid invoices, firms can give clients a straightforward method for submitting payment.

Offer Installment and Scheduled Payment Options

Some legal matters involve significant fees that clients may prefer to pay over time.

For example, a firm might agree to collect an initial payment followed by scheduled payments over the next several months.

A payment processing system with recurring and scheduled payment functionality can make these arrangements easier to administer.

Instead of manually contacting the client every month to collect another payment, firms can establish an authorized payment schedule based on the terms of their agreement with the client.

This can be particularly useful for practices handling matters such as family law, immigration, estate planning, business law, and other services where clients may have substantial legal expenses.

Accept Payments by Phone with a Virtual Terminal

Law firms do not necessarily need a physical credit card terminal every time a client wants to make a payment.

A virtual terminal allows authorized staff to securely enter payment information through an online interface when appropriate.

This can be especially valuable when clients call the office to pay an outstanding invoice or make a required payment before additional work begins.

For firms with clients across multiple states or geographic areas, remote payment capabilities can become an important part of their billing operation.

Send Electronic Invoices

Electronic invoicing can also simplify accounts receivable.

Instead of mailing a paper invoice and waiting for a check, a firm can send an electronic invoice that provides the client with an easier path to payment.

Electronic invoicing can help reduce administrative friction while giving clients a convenient way to address outstanding balances.

For a busy practice, even small improvements in the billing and collections process can save substantial staff time over the course of a year.

Payment Solutions That Work With Your Existing Business

Changing payment processors should not necessarily mean replacing every other system your law firm uses.

Cobalt can work with firms to determine the appropriate payment configuration based on their existing billing processes, technology, transaction volume, and client payment preferences.

Depending on the firm’s requirements, this could include a combination of:

• Online payments
• Virtual terminal transactions
• Electronic invoicing
• Recurring billing
• Scheduled payments
• Card-on-file functionality
• Physical payment terminals
• Payment gateway services

The objective is to build the payment workflow around the practice rather than forcing the practice to reorganize its operations around a payment processor.

Understanding Trust and Operating Account Requirements

Payment processing for attorneys also requires special consideration because law firms may maintain both operating accounts and client trust accounts.

Attorneys must comply with the professional-conduct, trust-accounting, and banking requirements applicable to their jurisdiction. Firms should carefully determine where legal fees, retainers, costs, and other client funds must be deposited and how processing fees, refunds, and chargebacks are handled.

Cobalt can work with a law firm to understand its payment-processing requirements and available technical configurations, while the firm should confirm that its specific payment and trust-account procedures comply with applicable bar rules and other legal requirements.

Don’t Evaluate a Processor Based Only on the Advertised Rate

A low advertised processing rate does not necessarily mean a law firm has the lowest overall processing cost.

Businesses should look at the complete merchant statement, including transaction fees, monthly charges, gateway fees, PCI-related charges, equipment expenses, and other costs.

They should also consider something that can be even more valuable than a small difference in transaction rates: service.

When there is a problem accepting a client’s payment, being able to reach someone who can actually help matters.

Cobalt focuses on providing businesses with competitive pricing, transparent payment solutions, and responsive support.

A Better Payment Experience for the Firm and Its Clients

Payment processing is ultimately part of the client experience.

A law firm may invest heavily in its website, intake process, case management system, and client communication, only to make paying an invoice unnecessarily difficult.

Providing convenient electronic payment options creates a more professional and efficient experience from intake through final billing.

For the firm, better payment technology can mean less manual collection work, more payment options, and a more organized billing workflow.

Talk to Cobalt About Payment Processing for Your Law Firm

Whether your firm needs to accept retainers, send electronic invoices, establish scheduled payments, take payments over the phone, or provide clients with convenient online payment options, Cobalt Payments can help build a payment processing solution around the way your practice operates.

We can also review your existing processing setup and merchant statements to help you understand what you’re currently paying and identify opportunities to improve your payment workflow.