Today’s clients, used to instant, flexible payment options everywhere else, bring those same expectations to their legal interactions. This trend has pushed the legal industry to explore online payment systems for law firms that improve client satisfaction, reduce disputes, and support a healthy cash flow.
Below, we’ll highlight the key factors to consider when selecting a payment processor that meets your firm’s needs and keeps clients satisfied.
What Should I Look for in an Online Payment Processing Provider?
When choosing an online payment processing provider, you want something that’s secure, easy to use, and doesn’t cost you a ton in fees. As you consider a payment processor, ask yourself the following:
1. What Payment Options Does It Support?
A strong payment processor should accommodate a variety of methods, such as credit card, eCheck, and ACH, to match client preferences and legal billing requirements. Additionally, look for a system that offers flexibility to adapt to different client payment needs, such as installment plans or recurring billing, without creating administrative complexity.
2. Is It Easy to Use and Integrate?
Ideally, your payment processor will be native to your legal practice management software, so you can keep all your billing and invoicing in the same place you manage your cases. Bill4Time, for example, has made accepting multiple payment methods easy with a built-in payments processor, Bill4Time Payments.
With Bill4Time Payments, you can create custom payment links through Link2Pay. The Link2Pay feature lets you add secure payment links to invoices, your website, or other correspondence to allow clients to pay by credit card or eCheck payment in just a few clicks on any accessible device. To make collecting payments even easier, you can also enable Bill4Time’s attorney-client portal so clients can easily access and pay their invoices in a secure place.
3. How Secure and Compliant Is It?
A quality payment processor should be able to manage nuanced compliance needs specific to trust accounting, such as maintaining detailed audit trails that automatically document every transaction and ensure accurate reconciliation. Compliance should also cover how the processor handles client data storage and retention policies. You want it to align with both your firm’s ethical obligations and any applicable data protection laws, like the General Data Protection Regulation (GDPR) or state-specific privacy regulations that may affect multi-jurisdictional practices.
4. How Much Are Transaction Fees?
It’s important to know exactly what you’re paying in transaction fees and how they could affect your firm’s bottom line over time. High or unclear fees can eat into profits quickly, especially when they come with hidden charges or complicated pricing structures. When comparing payment processors, make sure you get a complete breakdown of all potential costs, including membership or compliance fees.
Bill4Time Payments, for instance, keeps things simple with a flat 2.9% fee for all credit card transactions, providing more predictability. This also includes a cap on eCheck fees at 1%, making it a cost-effective choice for larger payments compared to the fluctuating rates other providers might charge.
What Are the Steps in Payment Processing?
While payment processes may vary slightly between providers, here’s a detailed breakdown of what to expect:
Step 1: Complete Initial Setup and Activation
Setting up your payment processing system should be straightforward and quick. With platforms like Bill4Time Payments, activation is user-friendly, involving no setup fees or additional monthly commitments beyond your subscription. The goal is to have your system ready without needing extensive IT support or long wait times.
Step 2: Integrate with Practice Management Tools
There are some standalone payment processors you can use, but the best practice is to find one that is built into a legal practice management platform, like how Bill4Time Payments is part of Bill4Time. With everything in one place, your firm can handle invoicing, payments, and case management without the back-and-forth between platforms (or the additional cost of a second platform).
Step 3: Customize Payment Features
Tailoring the system to meet your firm’s needs is essential. You’ll want to set up custom invoice templates and embed secure payment links directly into client communications. Customization should also include configuring user access permissions so that only authorized personnel can handle financial data, adding a layer of internal security.
Step 4: Start Distributing Invoices and Collecting Payments
With your setup complete, you can start sending invoices and payment links to your clients. Make these links easy for clients to use so they can pay by their preferred method, whether that’s a credit card or eCheck. Using features like Bill4Time’s client portal allows clients to see their invoices and make payments more conveniently, helping promote timely payments and transparency.
Step 5: Automate Follow-Ups
Automated reminders can help clients remember upcoming or past-due payments. Set these to go out via email or through a client portal to keep cash flow steady without adding more work for your staff.
Step 6: Get Paid
Once a client submits a payment, the process should transition into fund transfer without delays. With Bill4Time Payments, linking your firm’s operating and trust accounts is straightforward, eliminating the need for micro-deposits or extended bank verification times. Once payment is made, both you and your client receive instant notifications confirming the transaction. As far as processing time, funds are typically posted to your firm’s bank account within 2-3 business days for credit card transactions and up to 3 business days for eChecks.
See How Smooth Online Payment Processing Can Be With Bill4Time
Offering online payments means making an investment in the success of your firm and providing top-tier experiences for your clients. Bill4Time Payments helps bridge the gaps in your billing process, making it easier for your firm to meet client expectations and maintain steady cash flow.
If you want to know how smoother payment processing can benefit your practice, check out a free demo of Bill4Time and see what a difference it can make by clicking the button below.
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