Credit cards are the cash of the 21st century. The Federal Reserve Bank of Atlanta released data in August 2019 that revealed 75.5% of consumers had at least one credit card¹. More and more Americans are going cash-free, according to a recent survey by the Pew Research Center. About 3 in 10 U.S. adults say they “make no purchases using cash during a typical week.” And 46% don’t worry much about carrying cash since there are “lots of other ways to pay for things.”² Offering your clients multiple payment options has become a best practice for forward-looking, top-rated law firms.
If your law firm does not accept credit card payments or believes it doesn’t need to, here is some interesting information to ponder as we take a look at three key benefits to your firm of accepting credit cards.
- Clients prefer to pay using a credit or debit card. 80% of consumers prefer spending with a credit or debit card over other methods, according to a 2018 U.S. Consumer Payment Study³. Accepting credit cards makes payments easy for your clients and is a way of showing you care about their circumstances. By accepting debit and credit cards, law firms have the added flexibility of offering their clients the convenience of flexible payment plans. Clients that pay by credit card can also enjoy the points and perks they receive from the card issuer that can be used for travel and other rewards. And, it can help boost their credit score. The most recent published data from the Federal Reserve shows that the use of checks has declined to $14.5 billion annually in volume. On the other hand, credit and debit cards have exploded to $131.2 billion. The use of checks has declined 66%. The use of credit cards has grown 392%. (3) Law firms that do not accept credit cards run the risk of losing out on a large pool of consumers.
- Simplify and add to your revenue streams. Many reliable merchant processing companies provide simple, safe, and secure payment options, including in-office, over-the-phone, mobile, and online. Utilizing a merchant processor will allow your firm to accept credit and debit cards including Visa®, MasterCard®, American Express®, Discover®, Diners Club®, JCB®, Debit/ATM, and private label cards as well as PIN Debit and Signature Debit transactions. You’ll also be able to process e-checks (ACH) and convert paper checks to electronic bank deposits. If you haven’t considered online payments, here’s something to think about: you can easily process credit and debit cards and electronic checks online by adding that option to your website. These additional revenue streams take less time-of-staff than traditional payment options, saving your firm time and money while adding to your bottom line.
- Improve productivity and lower costs. Credit card processing is an automated acceptance and settlement process, so transactions are directly deposited into your law firm’s bank account. Using online reporting streamlines your Accounts Receivables. It’s more efficient and less time consuming than having staff send out and monitor invoices and deposit paper checks, freeing them to focus on your law practice instead of collections. And, it improves cash flow, as you’ll have access to the funds much faster than waiting on invoices or for checks to clear.
At LexActum, set up time is quick and easy. Merchant account applications are processed immediately, and your law practice is ready to process credit card sales within 24 to 48 hours. For a free statement audit, or to get started, Call us at 321-972-9838.
¹ Pew Research Center – “More Americans are making no weekly purchases with cash” – 2018
² Federal Reserve – “The 2019 Federal Reserve Payments Study” – 2019
³ TSYS – “US Consumer Payment Study” – 2018