Law firm usage of online payments is accelerating not only because of client demand but the increased efficiencies for firms.
With that comes increased scrutiny on the associated costs and the opportunity for next generation capabilities.
Pricing
In the early days of law firms accepting online payments, the limited providers were able to charge premium rates. While addressing compliance issues remains critical, these capabilities are no longer specialized or rare. Modern payment platforms have streamlined the process, offering secure and cost-effective solutions tailored to the needs of law firms.
| LawPay / ClientPay | PayQ | |
|---|---|---|
| Visa, MasterCard and Discover |
2.99% processing + $0.30 per transaction; Card-based network fees "may apply" |
2.95% – no transaction fees |
| American Express |
3.90% processing + $0.30 per transaction; Card-based network fees "may apply" |
3.50% – no transaction fees |
| eCheck / ACH | 1% processing – no cap | $1 per transaction |
Many firms finding paying a percentage on eChecks to be unacceptable. Some firms split their online payments, moving eChecks/ACH to their bank for lower fees. The unfortunate consequence is a less intuitive experience for clients and the need to manage two payment streams in the accounting department. A better solution is reasonable pricing that brings credit card and eCheck processing together.
Accounting Capabilities
The cost savings is important. But the real advantage of a modern payments platform comes in streamlining the process for your accounting department.
| LawPay / ClientPay | PayQ | |
|---|---|---|
| Invoice matching | Limited ability | Payments are allocated to invoices line-by-line eliminating reconciliation hassles |
| Payment application | Entered manually for most systems | Payments are automatically recorded and applied in the firm’s billing system to specific invoices for integrated systems |
| Overpayments | Accounting must handle overpayments mistakenly made by clients | Overpayments are not allowed. Clients choose the bills to pay, entering partial payments if needed. |
| Credit card vs. eCheck | Focused on driving clients to pay via credit card | Equal treatment to credit cards and eCheck |
| Deposits | Separate deposits for credit cards and eCheck | Unified deposits |
| Deposit Clearing | Takes three days to clear | Clear in one day |
Client Experience
A simplified online payment experience makes it easy for clients to pay, which results in faster payments.
| LawPay / ClientPay | PayQ | |
|---|---|---|
| Client account information | Often, clients must re-enter extensive contact and payment information | Payment information is automatically recalled, making the client experience swift and efficient |
| Client Portal | None | Simple and elegant user experience for clients to see their outstanding bills |
| Autopay | None | Easy autopay options |
| Evergreen Trusts | None | Automated workflows |
Bottom Line
In evaluating newer online payment options, law firms are discovering:
- Firms no longer need to pay premium rates for legal-specific online payments: newer platforms like PayQ offer lower fees compared to traditional systems like LawPay or ClientPay.
- Simplified pricing for eCheck/ACH transactions ($1 per transaction with PayQ) offers significant savings over percentage-based processing fees.
- Modern systems streamline accounting while improving the client experience, resulting in faster payments.
Learn more about PayQ, the next generation law firm merchant account and our full legal Invoices-to-Cash solution BillingQ.
With PayQ, we "found money" that used to go directly to credit card companies.