While managing a law firm can be complex, finding the right payment processing solution doesn’t have to be. There are a variety of options available but not all of them are ideal for the unique needs of a law firm. Due to their operational requirements and trust account management, law firms should always look for a payment processing solution law firms will benefit most from which means finding a solution that is explicitly designed for the legal industry. In this article, we will discuss what law firms should consider when selecting the best merchant processing solution for their business.

Understanding Your Needs

The first step in selecting the right payment processing solution is understanding your specific needs as a law firm. Not all merchant services are created equal and it’s essential that you understand what you need before signing on with any particular processor or service. It’s important to consider factors such as:

• What types of payments do you need to accept? Credit cards, debit cards, eChecks?
• Do you require additional features such as customer invoice generation?
• Do you need special features such as depositing funds from multiple accounts into one trust account?
• Do you want one-time payments or recurring payments?

Once you have an understanding of your needs, it will be much easier to narrow down your search and find the best merchant processor for your business.

Flexibility & Adaptability

The best payment processors will offer maximum flexibility and adaptability while still providing support when needed. Look for processors that offer customizable solutions so you can tailor them specifically to meet your business’s unique needs. Additionally, look for processors that offer customizable reports so you can track payments and other metrics easily and accurately. This allows you to keep better tabs on finances while also ensuring that everything complies with applicable laws and regulations. Finally, make sure the processor offers reliable customer service so any issues can be addressed quickly and effectively when they arise.

Read & Understand the Terms and Conditions

It’s important to read and understand the payment processor’s terms and conditions before signing any contracts. Not all payment processors are created equal, so make sure you know what you’re getting into before committing. Read the fine print carefully and look out for hidden fees or other clauses that could be detrimental in the long run. Be sure to familiarize yourself with the cancellation policy and any fees that may be associated, including if there is a liquidated damages clause. A superior merchant processor will retain their clients by providing quality services at a fair rate, not by locking their clients into a contract in one manner or another. Make sure the payment processor is upfront and honest about all their fees, policies, and procedures so there are no surprises down the road.

Select the Best Rate Structure for Your Needs

There are four types of rate structures used by merchant processors; interchange-plus, flat rate, subscription, and tiered. Understanding the different types of rate structures used by merchant processors is critical for making an informed decision when selecting a payment processor, as there can be considerable cost differences between the various rate structures offered.

While the rate structures vary from one merchant processor to another, one thing that always remains consistent is that all merchant services providers charge the interchange fee rates set by the card networks such as Visa or MasterCard. The interchange fee rates can be a bit confusing as the rates charged change frequently and vary based on the card network(Visa, MasterCard, Amex, etc), card type(credit or debit), sale type(card present or card not present), and the card program(rewards card, airline miles card, etc).

While interchange fee rates are unavoidable if your business accepts credit card payments, the rates that a merchant processor adds to the interchange do change. It’s important to analyze each option carefully and compare costs before committing to any plan.

Here are the four types of rate structures used by merchant services providers:

Interchange-plus

This is a transparent pricing structure where the merchant processor charges a markup fee over the cost of interchange fees set by card networks such as Visa and Mastercard. The merchant can see exactly what the interchange fee is for each transaction and how much the processor is marking it up. This type of pricing is favored by merchants as it makes it easier to compare rates and fees between different processors.

Subscription

This easy-to-understand type of pricing involves a monthly or annual fee for access to the merchant processing services, in addition to a per-transaction fee. This transparent rate structure is best for merchants with a low volume of higher-value transactions, but it may not be cost-effective for merchants processing a large number of small-value transactions.

Flat Rate

Flat rate pricing is a simple pricing structure where the merchant is charged a flat fee per transaction, regardless of the type of card being used or the transaction amount. This structure can be easy to understand and budget for, but it may not be the best option for merchants processing high-value transactions as the flat fee will be a larger portion of the transaction amount.

Tiered Rate

This pricing structure groups transactions into different tiers based on factors such as card type (debit or credit), transaction size, or the level of risk involved. The merchant is then charged a different rate for each tier. This structure is more confusing and less transparent than other rate structures, making it more difficult for merchants to compare rates and fees between processors.

Security & Compliance

The security of client data is paramount when it comes to any type of financial transaction including those related to legal services. Make sure the processor is compliant with all applicable laws including PCI DSS (Payment Card Industry Data Security Standard). Also look into whether or not they use encryption technology such as SSL (Secure Socket Layer), TLS (Transport Layer Security), or AES (Advanced Encryption Standard). These measures help ensure the highest level of security possible when transmitting credit card information over the internet, ensuring client data remains safe at all times. Additionally, make sure they have fraud protection and chargeback prevention protocols in place so troublesome transactions can be quickly identified, resolved, and potentially prevented from occurring in the first place.

Conclusion

Selecting a payment processor is an important decision and should never be taken lightly by any law firm or legal practice. It’s essential that legal professionals take time to thoroughly research payment processors before making any decisions about which one would work best for their business needs. By considering factors such as customization options, flexibility and adaptability, security protocols, fraud prevention measures, and customer support availability – legal professionals can rest assured knowing they chose a top-quality merchant processor specifically designed for the unique needs of their profession!

One example of a merchant services provider that specializes in payment processing for the legal industry that’s worth noting is LexActum. Their feature-rich solution has no hidden fees, plus they never lock their clients into a contract nor charge any cancellation fees. Their transparent, subscription-based rate structure offers their clients four subscription options that vary based on the monthly revenue volume that will be processed. This option is fantastic for growing law firms as you can change your subscription plan at any time with no hidden fees ever! Plus, they provide specialized payment solutions for trust and operational accounts which makes LexActum the ideal payment processor for legal professionals.

Whatever payment processor you choose, be sure to do your homework prior to signing up. With this guide in hand – there’s no doubt that choosing the perfect payment processor won’t feel like navigating through uncharted waters anymore! Good luck!