Everything you need to know aboutaccepting credit cards.

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CLE Spotlight On

1. Merchant Account Basics2. ABA and State Bar Opinions3. Chargebacks4. Using Credit Cards to Get Paid5. Best Practices

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What is a Merchant Account?

• A merchant account simply means that you can accept credit and debit card payments from your clients.

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Credit Card Transaction

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Unique Requirements for Attorneys

• Attorneys must comply with– ABA Guidelines– State Bar Guidelines

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Can My Client Pay a Retainer with a Credit Card?

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Trust Versus Operating

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• Avoid commingling client funds

• Safeguard client money• Separate deposit

What is a Chargeback?

• A chargeback is an irreconcilable dispute between the cardholder and the business in regard to a particular charge. Why do they happen?– Intangible service– Can’t return legal services– Fee disputes– Client is unhappy with resolution of the case

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Defend Against Chargebacks

• When a client disputes a credit transaction, it is crucial that you provide two key pieces of information:

Proof # 1 - a signed authorization from the cardholder for the amount specified.

Proof # 2 - documentation that work was performed.

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Chargeback

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Chargeback Process

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Chargeback Process

The Good News

You can win!• Attorneys have an overwhelming

success rate against chargebacks because of their ability to document their work.

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Additional Protection

• Do not store credit card numbers electronically (i.e. Excel file on your laptop)• Credit card information can be stored in paper files if they are locked• Credit card machines should truncate the credit card number (xxxx out the number)• Emailing credit card numbers• Updating passwords• Monitoring returns

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Features of Credit Acceptance

• Offer clients a convenient payment option.

• Professionally process payments.• Streamline billing and collections.

– Keep credit cards on file.– Electronically invoice clients.

• Turn your website into a payment center.

• Help diffuse client payment disputes.

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Pay Bill Options

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Visit www.teaselaw.com

Let Clients Know You Take Credit Cards

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Sample Electronic Invoice

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Manage Collections

• One of the primary uses of credit cards in a law firm is to help lower your collections. Use credit card incentives in order to encourage their clients to pay.

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Credit Cards on File

• Credit cards are a great tool to help improve cash flow. Include a credit card authorization form with your retainer agreement.– One time authorizations– Monthly billing– Past due payments– Payment plan

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Benefits of Credit Acceptance

• Attract clients• Win new business• Quickly receive client payments• Reduce collections • Improve cash flow!

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What Will You Do With Your Free Time?

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Questions?

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Typical Merchant Account Fees

 Fee Types Fee Ranges

Fees  

Application Fee $75- $195

Contract Terms 1-3 Years

Cancellation Fee $70 - $300

Set Up Fees $100 - $300

Annual Fee $50 - $200

Monthly Minimum Fee $20 +

Service  

Processing Rate for In Person Transactions 1.79% - 1.85%

Processing Rate Internet/Mail/Phone 2.29% - 3.5%

Transaction Fee for In Person Transactions 20¢ - 30 ¢

Transaction Fee Internet/Mail/Phone 20¢ - 40 ¢

Monthly Statement/Service Fee $5 - $15

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Speaker

Janelle BenefieldOperations Director

Affiniscape Merchant SolutionsProvider of the Law Firm Merchant Account

“Recommended by over 50 bar associations!”

512-366-6971jbenefield@affiniscape.com

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