Credits cards are just a funds transfer tool. Clients can use credit card charges to pay outstanding invoices, reimburse law firms for expenses, and deposit funds into a firm’s trust account. Lawyers can use charging capabilities to set up payment plans, create flexible billing options, and offer affordable options to clients.
Freed from many of the constraints on lawyer-advertising, firms can now advertise that they accept credit cards. In states that have not refreshed their ethics opinions on the subject, lawyers may still need to inform their clients about the chance of interest being charged on their payments.
Some states expressly permit passable surcharges for credit card fees. If a law firm is passing along the fees, Lawyers should notify their client as part of their written engagement letter or fee agreement that these charges will be imposed. Clients need to know what will be the basis for calculating these charges.
This means the credit card company will be accessing the law firm’s trust account. Worse, if the funds in dispute have been already transferred, the credit card company may be seizing trust funds that belong to another client. Suddenly the law firm has two angry clients and an ethics complaint brewing.
Complaints. The Federal Trade Commission (FTC) enforces the FCBA for most creditors except banks. If you think a creditor has violated the FCBA, file a complaint with the FTC. You also can sue a creditor who violates the FCBA.
Complain to Consumer Financial Protection Bureau. The CFPB began accepting complaints against credit card companies in 2012. You can file a complaint on-line, by phone or by mail. You should also file the same complaint with your state Attorney General.
Disputing a credit card charge. Consumers can dispute fraudulent charges on their bill by calling their issuer. This is typically a quick process where the issuer will cancel the credit card in question and reissue a new one. You also have the right to dispute a credit card charge for a purchase you willingly made.
How long do you have to dispute a charge? You normally have 60 days from the date a charge appears on your credit card statement to dispute it. This time limit is established by the Fair Credit Billing Act, and it applies whether you're disputing a fraudulent charge or a purchase that didn't turn out as expected.
It allows you to make a claim against your credit card company to get your money back if a retailer or trader lets you down and refuses to honour the contract properly - including if it goes bust.
The short answer to this question is No. The Bill of Rights (Art. III, Sec. 20 ) of the 1987 Charter expressly states that "No person shall be imprisoned for debt..." This is true for credit card debts as well as other personal debts.
Company Won't Give You a Refund? Here's How to Get Your Money BackTry to Work it Out with the Merchant First.Option 1: Request a Chargeback.Option 2: Consider Mediation.Option 3: Sue in Small Claims.Option 4: Pursue Consumer Arbitration.FairShake Can Help Make Arbitrating a Breeze.
Yes. If the cardholder doesn't make a compelling enough case to their bank, or doesn't have a valid reason for filing a chargeback, the bank may refuse to open a dispute.
If your issuer accepts the dispute, they'll pass it on to the card network, such as Visa, Mastercard, American Express or Discover, and you may receive a temporary account credit. The card network reviews the transaction and either requires your card issuer to pay or sends the dispute to the merchant's acquiring bank.
20 All merchants report winning 40 percent of disputed chargebacks on average. The true win rate average is actually 22 percent (56 percent average of fraud-related chargebacks disputed multiplied by 40 percent average win rate); however, the 27 percent average looks at the metrics on a merchant-by-merchant basis.
Your dispute should be made in writing to ensure that the debt collector has to send you verification of the debt. If you're having trouble with debt collection, you can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372).
The card issuer must complete its investigation within two complete billing cycles of receiving the dispute, which generally means two months, and cannot take more than 90 days.
People that hack into your credit card account with the intent to use your card without your permission may not be the sole perpetrator in your credit card fraud case.
Hopefully, when you discover your credit card has been used in a fraudulent manner, you can stop the fraud at one single incident as opposed to discovering it after several transactions have been made. Alerting your card issuer to the fraudulent charges will put a freeze on your account, keeping the damage to a minimum.
The next step in your credit card fraud case is to contact an experienced consumer fraud lawyer as soon as possible.
DoNotPay was designed to level the playing field and make information like your credit card fraud attorney available to all. By using the DoNotPay Identity Theft product, you can handle several of the issues mentioned earlier, such as;
DoNotPay is your one-stop, all-inclusive information hub for issues like credit card fraud attorneys. Look at these three reasons to trust DoNotPay.
Take a look at these credit/identity-related issues you can easily navigate with DoNotPay.
If you can't afford an attorney, you might be able to get low-cost or free help from a legal aid program or clinic that provides legal assistance to low-income individuals and families. You can find a list of various legal aid programs on the Legal Service Corporation's website.
An attorney can also point out, and raise in court, defenses that you haven't considered.
If you don't respond to the suit, the court will most likely enter a judgment against you for the amount the creditor claims you owe. Courts routinely order debtors to pay accrued interest plus court fees, which can exceed the original amount owed. Other harmful consequences can include garnishment of wages, directing your bank to turn over funds from your account, and the seizure of personal property. An attorney can explain the specifics about what might happen in your situation.
This deadline is called the statute of limitations. The time limit varies from state to state, but it's generally from three to six years.
If the party that files the lawsuit isn't the original creditor, it must prove it owns the debt. So, the lawsuit paperwork must include appropriate documentation showing that the plaintiff bought your debt from the original creditor or another entity that previously purchased the debt.
An attorney can advise you about what you should and should not say (or do) in regards to an old debt. And, if you decide to hire the attorney to represent you in the matter, the lawyer can deal with all communication to and from the creditor or debt collector.
If you don't qualify for legal services help and can't afford to hire an attorney to represent you throughout the suit , it might be worth paying a lawyer for an hour of legal advice. The attorney might be able to confirm that you don't have any good defenses, provide tips on negotiating with the credit card company, and tell you about other options you could have.
When considering credit card processing for lawyers, it’s imperative to think about how your chosen solution will impact the other tools you already use. If you’re keeping multiple windows open and entering the same information into different programs, you’re wasting valuable time on a rote task—and increasing the chance of human error.
Most credit card processors do not charge a monthly fee. Still, LawPay charges users $20 per month for an account (Theoretically, customers can have an unlimited number of bank accounts connected to their LawPay account at no additional cost).
PayPros Legal charges just 1.69% per transaction with no monthly fees. However, that’s only if you use their terminal to process payments (you’ll need to buy the terminal for $60). Without the terminal—i.e., if clients want to pay online—it costs 2.25% per transaction or 2.99% per transaction for specialty credit cards.
Clio Payments is one such solution, as it allows you to bill clients and track payments from directly within Clio.
Law firms need a credit card processing solution for lawyers—one that does not allow chargebacks on trust accounts and does not take fees from trust accounts.
In some jurisdictions, it’s permissible for lawyers to pass on credit card processing fees to clients. However, it’s not recommended. A reversal of previous ethics opinions has happened. It’s best to accept these fees as the cost of doing business.
When it comes to credit card processing for lawyers, firms that leverage plastic as a payment method win. According to Clio’s Legal Trends Report, firms that accept credit cards get paid faster—57% get paid the same day they are billed, and 85% get paid within a week. Credit card payments are convenient for clients, and they’re easy to set up and track, meaning that firms who accept them provide more client satisfaction while spending less time on administrative tasks.
Credit card surcharging has rapidly gained in popularity in recent years as court decisions and legislative changes have gradually removed legal barriers to the practice. The ongoing COVID-19 pandemic has greatly accelerated this trend. Merchants struggling to stay afloat have increasingly turned to credit card surcharging as a way to lower operating expenses and keep their businesses profitable. All but a few states now allow the practice, making it a viable option for most small business owners in the US. Nonetheless, the question remains: Should you add a surcharge?
Surcharging is the practice of adding a small fee to a credit card transaction to cover the merchant’s costs for processing the payment. Instead of the merchant having to absorb this expense, the customer who chooses to pay by credit card pays for the processing costs that do not apply to other payment methods.
A surcharge is a small fee that is added to the cost of a transaction if the customer chooses to pay with a credit card. Surcharges are intended to cover the merchant’s cost for processing the transaction.
While both of these methods serve to pass the cost of credit card processing onto the consumer, the only apparent difference between the two is that with surcharging, the extra cost is added to the advertised price. With cash discounting, the cost is deducted from the advertised price when a credit card is not used. For merchants, the most important distinction between these two methods is that cash discounting is legal everywhere in the US, whereas surcharging credit cards is still prohibited in a couple of states and territories.
A convenience fee is a fixed-rate fee added to a customer’s bill if they choose to pay via credit card instead of an available alternative payment method. Unlike surcharges, convenience fees aren’t tied to the actual cost of processing a credit card transaction. Also, the credit card associations have separate rules for convenience fees.
Two states require additional disclosures to surcharge credit card processing fees: Maine and New York. In both cases, you must post both the cost of paying with cash and the cost of paying with a card using dollars and cents. This is on top of Visa, Mastercard, American Express, and Discover requirements, which require you to post notifications at the point of sale and specify the surcharge amount.
You must notify the card association and your merchant services provider of your intent, in writing, at least 30 days in advance. (Note: American Express surcharge rules do not require you to provide notice so long as you comply with all other rules.)
For some clients, it’s the peace of mind that comes from knowing that they won’t be cheated and that their credit card fraud protection department is there for them. For others, it’s the ability to pay for your services over time. For others still, it’s the points or miles that they’re trying to earn that provides the greatest incentive. Regardless of the client’s motivations, you will likely find that advertising that you accept credit cards will result in an increase in clients.
Multiple studies show that when receiving a bill from their attorney, clients are much more likely to pay the bill if they can do it right from their phone or PC. The speed and likelihood of payment go even higher if the payment button is billed right on the invoice and has a short-form process.
Deposit all credit card processed funds into your operating account, and then immediately move them to escrow when appropriate. I don’t think I need to say much about this ‘option’ other than it is likely in violation of the escrow rules in your state, and if it’s not, it should be. The risk of mistake here is unjustifiable.
If you do, LawPay is the main game in town. It integrates with just about every practice management system, including Clio (the one I use). By integrating your practice management and credit card processing systems, you can have a completely seamless process where your time is entered into your practice management system, which generates a monthly invoice, sends it electronically to your client, who then pays the bill online and your practice management system receives and records payment on the invoice, handling your books automatically and providing your client with an electronic receipt, and you with electronic notice. Collections couldn’t get any easier.
Leave extra funds from operating in the escrow account to cover the monthly fees. This option is bulky and risky if you ever underestimate expected fees.
Depending on your type of practice, you may want to consider accepting PayPal, Android, and Apple Pay, and in time, maybe—just maybe, at some point in the future—you should accept Bitcoin… but we’ll leave that for another day.
Aside from ethical issues, processing fees are probably the biggest reason lawyers have avoided accepting credit cards. In jurisdictions that have adopted the language in the ABA’s 1974 ethics opinion permitting credit card payments, passing along surcharges may not be allowed. The original language reads, 4.
If a client disputes a charge on their credit card, credit card processors will attempt to claw back money deposited in a disputed transaction. This means the credit card company will be accessing the law firm’s trust account.
The basis for the second notice is to allow the client to make payment arrangements with different funds. A client’s economic situation may not support unanticipated payments coming from a debit card or credit card. Lawyers should be mindful of the client’s circumstances and let clients decide if the charge should continue.
The first issue when accepting credit card fees into trust is the issue of chargebacks. Lawyers are to hold client-entrusted funds inviolate. No other entity should be able to access funds held in trust.
Most charge between 2-3% of a transaction. A client may deposit $1,000 into their law firm’s trust account. The lawyer receives only $980 to deposit into trust. Twenty dollars has been collected as a processing fee. This could create ethical issues if the client was relying on the full total being available for bills or expenses related to their matter.
Not every state ethics committee has equally addressed all the issues surrounding this flexibility. Credits cards are just a funds transfer tool. Clients can use credit card charges to pay outstanding invoices, reimburse law firms for expenses, and deposit funds into a firm’s trust account.
In a 2018 survey of law firms by Clio, checks were still the payment method most accepted by firms—44 years after the ABA approved credit card payments. This is in spite of checks being eclipsed by payments being made with credit and debit cards by hundreds of billions of dollars across other industries.
Credit card fraud can be prevented by exercising some practical safety precautions. These include: 1 Don’t give out credit card or PIN number unless dealing with trustworthy business 2 Destroy receipts immediately or store them in a safe location 3 Never leave cards out in the open 4 Don’t write PIN numbers and store them in your wallet 5 Enroll in Online Statements that allow you to view charges instantly online
It is imperative to report your card stolen immediately to the issuer of the original card. Many companies have 24 hour phone lines to report lost or stolen cards. In addition, other agencies below can be contacted:
Credit card fraud can be prevented by exercising some practical safety precautions. These include: Don’t give out credit card or PIN number unless dealing with trustworthy business. Destroy receipts immediately or store them in a safe location. Never leave cards out in the open.
Your local Consumer Protection Agency. Under federal law, the maximum liability of card holders for lost or stolen credit cards is $50 upon reporting.