Boost Your Cash Flow With Law Firm Payment Processing Tools
By Adrian Aguilera
Law firm credit card processing techniques are becoming a gold standard for reducing payment delays and enhancing cash flow. Adopting a modern credit card processing system will give your office an edge by offering greater accounts receivable success percentages and improved workflow efficiency.
What makes for a sound attorney credit card processing system? One that can easily integrate into your law firm’s payment structure while maintaining ethically-compliant accounting. Below is an overview of the rise of law office credit card processing, its benefits, and critical criteria for selecting the best legal payments software.
The Rise of Law Firm Credit Card Processing Systems
Since the pandemic, electronic payments have surged as a profitable method of business transactions. According to a recent Federal Reserve press release, the adoption of new contactless technologies for payments increased year-over-year in 2020. Since then, the payment landscape has continued to grow for a wide range of industries, including the legal sector. Currently, 53% of law firms are equipped to accept electronic payments. It’s no surprise that $5 out of every $6 is collected electronically in 2022. This is in comparison to $1 out of every $6 in 2014.
For more information on electronic payments, check out this infographic on the benefits of online payment processing for law firms.
Benefits of Legal Payments Software
Law firm payment processing tools are an easy and more efficient way of handling the time-consuming admin processes. This includes invoice creation, follow-up, and payment collection. Below are three key benefits of adopting legal payments software into your firm’s accounting system.
Improves Payment Processing and Collection
Give your law firm a cash flow influx with attorney credit card processing systems. Adopting credit/debit card options from specialized software (designed specifically for law firms) will help you instantaneously receive your payments from a central and secure source. These law-specific services also ensure that transactions are performed ethically by separating trust and operating account payment and chargeback processes.
Additionally, credit card processing will significantly reduce the need for in-person payment appointments. You’ll also reduce payments received via check, eliminating the pain of processing each check at your law firm’s bank, secretly hoping they don’t bounce.
Saves Time and Boosts Efficiency
Don’t fall behind the competition by sticking to slower, traditional methods of client communication and payment processes. Law firm payment processing software centralizes and automates many of the frustrating client communication and payment processing admin tasks. For example, you can create customized invoices for clients and send them directly from the software. These are then marked for auto follow-ups based on the dates you assign. Once you receive payment, each invoice will auto mark as paid or partially paid. As a result, you’ll know exactly where each client stands with their bill. Credit card processing also frees up your staff resources, helping them focus on what matters the most—managing cases.
Enhances Overall Client Experience
Boost your business referrals and positive reviews by providing the most convenient communication and payment options. With law firm credit card processing, your client is in the driver’s seat. This software allows them to pay from their laptop, desktop, or mobile device. Credit card payment plan options also provides convenience. Payment plan flexibility assists clients who may not have the means to pay the full bill all at once. As a result, you’ll receive a higher probability of cash flow and clients will value the pleasant payment experience. This also significantly improves your chances to earn more business.
Furthermore, payment processing systems can sync with your phone and email. This helps you stay updated on client messages, while allowing you to correspond directly from the software. All in all, customers expect the highest level of convenience. Legal payments software can help your firm stay top of mind should a client’s acquaintance or a family member require your services.
Criteria for Choosing Credit Card Processing Tools for Lawyers
Payment collection and processing is a hassle that steals the time you need for your next big case. According to a recent MyCase Industry Report, payment collection was a challenge for 73% of law firms. A good legal payments software should:
- Easily integrate into your law firm accounts receivable system
- Automate/customize billing and follow-ups
- Process payments quickly and efficiently
- Fulfill all compliance regulations
Fully Integrates into Your Firm’s Process
A good attorney credit card processing solution should work for you, not against you. When searching for legal payments software, ensure that the system easily integrates with your current workflow and tools. Law office credit card processing solutions should also enhance efficiency by housing all invoicing, payment, and tracking features under one roof. This eliminates the back and forth between multiple programs or online tabs. MyCase Payments offers a single platform for tracking time, invoicing, and payment collection—with payments automatically recorded and reconciled within MyCase and QuickBooks.
Meets Ethically-Compliant Accounting Rules
Credit card payment processing shouldn’t jeopardize your ethical obligations. It’s important to ensure that your payment processing provider never withdraws credit card fees from your firm’s trust account. Credit card processing for lawyers, like MyCase Payments, should separate your operating and trust account. This will ensure that fees are withdrawn only from your operating account, keeping you clear from credit card ethics violations.
Provides User-Friendly Digital Invoice and Payment Features
A law office credit card processing system should provide multiple payment methods. This includes credit card, debit card, and eCheck (ACH) payments. The traditional accounts receivable process (with no credit payment options) produces inadequate paid invoice results.
With credit card and ACH payment capabilities, automated payment plan options, and billing reminders, your clients can pay fees over their mobile device or desktop. This provides your firm with an instantaneous collection. In addition, it removes the days or weeks it takes to mail an invoice to the client, and the hours of admin follow-up in pursuit of securing overdue payments. Overall, a law firm credit card processing system with these features is a win-win. The client can quickly pay their bill in one lump sum or installments (from any device) while you receive your payment more promptly and efficiently. Furthermore, the automation and organizational features provide legal professionals the luxury to spend more time on client cases and less on administrative tasks.
Choose the Best Law Firm Payment Processing System
With credit card processing, your firm can increase their accounts receivable cash flow—saving you precious time. MyCase’s Payments feature seamlessly integrates with your billing and accounting processes. In addition, it maintains accounting ethics and curbs the time spent tracking down payments and processing checks.
MyCase Payments include:
- Invoices auto-marked as paid or partially paid
- Automatic trust account updates and support
- Fees only debited from your firm’s operating account
- Client payments auto-synced with QuickBooks
- Quick payment plan setup on invoices
- Automatic monthly reminders
- Subscription-based billing
- Auto-reconciliation in QuickBooks Online
- Detailed payment history
- Transaction history reports by date range or case
Try MyCase today risk-free with a 10-day free trial. We offer affordable monthly and yearly subscriptions. Plus, there’s no commitment required, and you can cancel anytime. So, save your stamps and boost your cash flow with the best law office credit card processing system in the marketplace.