Boost Efficiency, Cash Flow, and Client Satisfaction with Payment Plans

In a slowing economy, cash has been tight. Many consumers are focused on building their savings and lowering their monthly spend, taking advantage of payment plans whenever possible. Think of any large payments you couldn’t pay outright — a car, a house, student loans, credit card debt, and more.

For many people, the price of legal services can be overwhelming to pay fully right away. This is where payment plans can make those costs less of a hurdle, allowing people to have access to the legal services they need while limiting financial strain.

Why should law firms offer payment plans?

In a 2021 study, the U.S. saw the largest growth in non-cash payments since 2000. This shows the value of alternative payment methods, consumers are moving away from cash. ACH transfers accounted for more than 90% of the rise in non-cash payments from the study mentioned above. Because of this, law firms and their clients can avoid third-party lenders.

Offering clients payment plans not only increases a firm’s chances of being paid fully, but also gives their clients the flexibility to pay however best suits their situation. For a large portion of clients, accessing legal services can be difficult if payment on legal fees is due upfront.

There are many benefits payment plans offer clients and law firms. Online payment plans can help firms get paid faster, consistently, and in-full while providing flexibility to their clients. Payment plans expand your client base while improving cash flow. Law firms offering payment options to clients not only matches consumer demand, but makes financial sense for the firm itself.

Payment Plans Benefit Both Clients and Law Firms

The first thing that may come to mind when brainstorming ways to increase cash flow may be to increase the number of clients. However, with an online payment processor, law firms can monitor the money that comes into the practice and from what services more efficiently.

Easily Optimize Firm Performance and Increase Cash Flow

Once online payments are set up, law firms can use reporting and analytics to stage the data into reports and pull numbers to properly tell the story of a law firm’s revenue.

These insights can help firms find actionable steps to improve their services and increase revenue. These trend reports can also provide data on clients’ billing, opening the opportunity for law firms to cross-sell services based on the clients’ needs.

Ensure Compliance Standards with Online Payments

From cloud-based software to AI-powered solutions, the legal industry has witnessed a digital transformation throughout the years. When it comes to lawyer payment plans, it’s crucial to choose a solution that not only meets your firm’s needs, but also aligns with industry standards and regulations. Law firms that keep up with new and emerging technologies will be able to adjust any procedures to improve efficiency and productivity.

In addition to constantly making improvements and additions to the software, Bill4Time is compliant with all state and federal regulations, while also keeping in mind best practices to keep data secure. The American Bar Association has a great guide to legal payments that can help law firms get a general overview to start learning more about legal payments.

Work With One Application to Do It All

Managing payment plans for law firms can become a time-consuming and complex process. This is especially true when firms have a large number of clients or a lower number of clients with a large amount of payments to be collected. Having multiple software or methods to keep track of payments can lead to erroneous charges, late payments, and lost revenue. Bill4Time saves lawyers time by combining the best features into one platform. This streamlines the payment process, opening up time for your law firm to focus more on legal tasks than administrative.

Tailor Payment Options to Fit Clients’ Needs with Custom Payment Plans

Lawyers need the flexibility to customize payment plans based on their needs and their client’s needs. A one-size-fits-all approach to payment plans won’t work. With Bill4Time Payments customizable payment plan feature, law firms can tailor the payment schedules to what works best for their firm. This eliminates any middle man lender and creates an even stronger client-firm relationship. Plus, the added bonus of known revenue coming in and getting paid faster and in full.

Enhance Client Experience to Build Trust and Provide a Hassle-Free Payment Process

Offering Bill4Time Payments’s online payment features, law firms can accommodate a wide variety of payment preferences while ensuring security and convenience. This approach not only fosters positive client experiences, but also improves client satisfaction and promotes stronger firm-client relationships. Making the potential stress of large legal fees flexible, customizable, and manageable with online payments allows clients to have access to the legal services they need without being limited because of their finances.

Provide Convenient Online Payments with Bill4Time Payments

With the combination of payment plans and a law firm’s billing process, Bill4Time Payments eliminates the need for manual and time-consuming payment tracking. Instead, law firms can leverage automated invoicing and online payment options, providing clients with a convenient and secure way to settle their bills. This saves valuable time and resources for the law firm and enhances the overall client experience.

Benefits of Offering Multiple Ways to Pay

Just like customized payment plans, offering clients multiple ways to pay enhances convenience and accommodates client preferences. By providing various payment options, law firms can ensure a seamless and hassle-free payment experience for their clients, while still prioritizing firm revenue without sacrificing the quality of work.

With credit cards, debit cards, ACH payments, and bank transfers, clients have the flexibility to choose which online payment method works best for them. Not to mention the added firm benefit of eliminating the need for physical checks and reducing potential delays in payment processing.

Implementing payment plans for lawyers is quick and easy with Bill4Time. Law firms can set up payment plans to easily organize and schedule recurring, automated payments for any client. Bill4Time Payments allows firms to speed up the payment process and ease client hesitation when it comes to invoicing.

With the Bill4Time Client Portal, clients can easily access their billing information, view payment history, and make payments whenever it works best for them. Client self-service options empower clients to take control of their payment plans, providing them with flexibility and autonomy in managing their financial obligations to the law firm.

Gain Insights on Cash Flow and Finances with Bill4Time Payments Reports

With Bill4Time Payments, law firms have access to financial reports like the Payments Applied Report or Payments Received Report, Invoice Report with Expenses, and the Account Activity Report or Account Balance Report. Law firms can use the data from these reports to find areas of practice that are bringing in revenue or ones that need to be cut or revised from their service offerings.

Explore the Simplicity of Bill4Time: Get a Demo

Bill4Time is a solution that streamlines the payment process for law firms seeking efficiency, accuracy, and positive client experiences. Access features like an impressive online payment portal for clients and an all-in-one payment and billing solution. Schedule a demo today with a Bill4Time expert and see firsthand how digital payment solutions with law practice management software can revolutionize law firm operations.

Law firms amass sensitive client data and confidential information, an appealing reward for a sophisticated cyber attacker. According to the 2022 ABA Cybersecurity Tech Report, 27% of law firms experienced a security breach.

Law firms need to be proactive about data security so they don’t become a statistic. Learn about your ethical responsibilities to cybersecurity and how you can mitigate your firm’s risk of a cyberattack.

American Bar Association (ABA) Data Compliance Rules and Regulations

Lawyers have a professional and ethical responsibility to protect client data and disclose a breach if it occurs. According to the ABA Rule 1.6: Confidentiality of Information, lawyers must “make reasonable efforts to prevent the inadvertent or unauthorized disclosure of, or unauthorized access to, information relating to the representation of a client.”

The ABA also has several Ethics Opinions that guide lawyers on how to address cybersecurity:

• Securing Communication of Protected Client Information
• Lawyers Obligations After an Electronic Data Breach or Cyberattack

Data Compliance Regulations Your Law Firm Should Know

Data security laws are complex and can vary by location, especially for law firms that may handle clients in different locations or with different types of sensitive information. Here are some data compliance regulations your law firm needs to know.

General Data Protection Regulations (GDPR)

In 2018, Europe introduced a unified data protection law, GDPR, for businesses handling personal data. This law requires enhanced protection of personal data for EU individuals. While this only applies to companies in Europe, the regulations could impact a US law firm. It’s best to learn about GDPR and stay compliant.

Health Insurance Portability and Accountability Act of 1996 (HIPAA)

HIPAA is a federal law requiring healthcare providers and business associates to safeguard protected health information (PHI) from accidental disclosure. Law firms are considered business associates and may have access to medical records for cases, so it’s essential to comply with HIPAA when handling PHI for clients.

California Consumer Privacy Act (CCPA)

In 2020, California introduced CCPA to mirror GDPR and require enhanced protection of personal data for California residents. Law firms that operate in California or have California-based clients must be compliant with CCPA.

Stop Hacks and Improve Electronic Data Security Act (SHIELD)

Like California, New York introduced SHIELD to safeguard personal data. This act includes a requirement to implement reasonable security safeguards for any business in possession of the personal data of New York residents. This is in addition to the state’s existing data breach notification requirement, which is one of the strictest in the country.

Federal Trade Commission (FTC) Act

The FTC Act allows the FTC to prosecute businesses for unfair or deceptive acts or practices, including apps or websites that contain misleading information about privacy and security. This rule applies to all US companies regardless of industry and extends far beyond data privacy. One of the toughest aspects of the FTC Act is that the organization issues fines to companies that aren’t compliant and continues to levy them until it’s resolved.

Best Practices for Data Compliance in Your Firm

Be Proactive, Not Reactive

A reactive approach to mitigate cybersecurity incidents means you’re always one step behind. Law firms are a valuable target for hackers, so it’s important to take a proactive approach and implement security measures before a cyberattack happens. This not only reduces the risk of attacks in the first place but limits the damage if one occurs.

Create a Security Policy

An unfortunate number of security issues start with user error, not flaws in the tech. Your firm needs a clear, easy-to-follow plan for data security that everyone at the firm is privy to. Educate your employees and enforce best practices like multi-factor authentication (MFA) for logins and only using approved apps.

Train Staff

Despite the best intentions, staff can be a weak link in your firm’s data and cybersecurity. Compromised credentials, accidental link clicks, or weak passwords can be an access point for a hacker. Don’t assume your employees know how to recognize and report suspicious behavior – train them. Create a culture of cybersecurity and conduct regular training with current staff and new hires to keep everyone on the same page.

Use Tech with Legal-Specific Security Controls

Data security is ultimately the ethical responsibility of your firm, but the law practice management software you use can make this more challenging. Make sure you vet your vendors thoroughly to ensure that they’re as committed to cybersecurity as your firm.

The ideal option is working with a law practice management solution that uses legal-specific security controls, including MFA, activity tracking, user permission controls, and secure client communication portals.

Updates in Data Compliance

As high-profile breaches rise, more and more states and jurisdictions are implementing their own data compliance and information security rules. It’s possible that there will even be a federal data compliance regulation like GDPR.

There are 15 states that have bills in progress, as well as three that have laws on the books that went into effect this year:

• Virginia Consumer Data Protection Act (CDPA): As of January 1, 2023, Virginia CDPA will protect the privacy rights of state residents.
• Colorado Privacy Act (CPA): CPA will go into effect on July 1, 2023, and grants Colorado residents rights over their data. This act is similar to CCPA.
• Utah Consumer Privacy Act (UCPA): The UCPA goes into effect on December 31, 2023, and offers businesses a little more leeway than other states. It only applies to businesses that target Utah residents, have revenue of $25 million or more, and meet thresholds for data collection.

International regulations are also changing and affecting international markets. South Africa, China, and the United Arab Emirates all passed privacy legislation in 2021, and it’s likely that other countries will follow. The US and EU also have a preliminary deal to outline how US-based companies can store the personal data of European residents.

Stay Compliant with Legal-Specific Software

Robust data security isn’t a step above any longer. It’s an essential part of running a business, including a law firm. With the sensitive information your firm has, it’s essential to be proactive in safeguarding data security and mitigating the risk of a breach with security controls, training, and security-focused law practice management software. 

Legal data analytics opens a new world of possibilities for law firms to achieve operational efficiency and improve outcomes for clients – all with existing data sources.

It’s likely that you already use legal analytics without realizing it but devising a strategy can help maximize your firm’s success. Here’s everything you need to know about legal data analytics.

What Are Legal Data Analytics?

Legal analytics is the process of including data-driven insights into the decision-making process for law firms, such as legal strategy, resource management, and matter forecasting. This offers a competitive advantage by providing full visibility and transparency into law firm operations.

Types of Legal Data Analytics

There are two types of legal data analytics: business and practice. The former focuses on data that are relevant to all businesses, while the latter is specific to legal practices. Each is broken down into specific topics.

Business Data Analysis

• Financial Analysis: At the end of the day, a law firm is still a business. Financial analysis is important to identify cost-saving opportunities, optimize billing processes, and assess profitability. This includes important financial statements like the income statement, balance sheet, and cash flow statement.
• Client Relationship Management (CRM): CRM improves the client experience by enhancing client interactions, identifying cross-selling opportunities, and improving client retention rates. The CRM holds all your relevant client data, including case history, communication history, and demographics, segments the client base according to industry, revenue, or location, and provides granular details to personalize interactions.
• Marketing and Business Development: Marketing analytics can help you understand your ideal client, where your practice stands compared to competitors, and how your marketing initiatives are performing. You can also learn where your prospective clients are coming from to determine the best marketing channels for your budget.

Practice Data Analytics

• Case Outcome Prediction: Predictive legal analytics provides forecasting for case timelines to the most probable outcome to build a case, devise litigation and negotiation strategies, and evaluate options.
• Legal Research and Document Analysis: Legal research can be a time-consuming process, but it’s key in identifying the important precedents or statutes that provide a competitive edge. Legal research analytics helps you identify the relevant cases in your practice area more efficiently to spend more time developing your case strategy.
• Workflow Optimization: Lawyers often struggle with time management, but you can improve your firm’s workflows by analyzing data on workloads, case duration, and resource allocation. You’ll save time with streamlined processes and enhance your firm’s productivity and ensure that you’re allocating resources and delegating tasks effectively.

Why Should My Law Firm Track Legal Data

Legal data is important for all firms, big and small. Here’s why:

Strategic Decision-Making

With legal data, you can make informed decisions that are backed by evidence and trends instead of assumptions and biases. Whether you’re planning to branch into a new practice area or looking to expand your law firm into new markets or locations, you can rely on data insights for more favorable outcomes.

Client Service Improvement

The client experience is one of the most important aspects of staying competitive in the modern legal market. By tracking legal data, law firms can better understand client needs, preferences, and patterns to improve client satisfaction and loyalty.

Competitive Advantage

With increased competition and savvier clients, law firms often struggle to stay ahead and acquire new clients. Legal data gives you a competitive edge by identifying emerging trends, market opportunities, and potential risks, so you can stand out in a crowded market.

Performance Evaluation

Tracking legal data gives you insights to continuously improve your firm’s performance and identify areas for improvement. Data trends reveal strengths, weaknesses, and blind spots for an objective view of your performance and success.

How to Track Legal Data Analytics

Ready to include legal data analytics in your firm’s processes? Here’s how:

Define Key Metrics

It’s important to have a goal in mind and metrics to define success with legal analytics. Your metrics will vary depending on the type of analytics. For example, client acquisition, the cost to acquire a new client, and the average value of a client or case aid your marketing strategy, while realization rate, utilization rate, and billable hours inform your productivity. Clearly define these metrics to zero in on the relevant data.

Data Collection and Storage

You likely already have data for your firm in the form of financial records, client information, and marketing metrics, but you should have systems in place to collect and store it all. Implement processes to gather and organize it effectively, then store it in a secure and reliable data storage system.

Data Analysis Tools

Data analysis tools are key to successful legal analytics. You can rely on external tools like Excel or Power BI, but a comprehensive law practice management solution with reporting helps you home in on targeted, relevant data for your goals. With Bill4Time, you can get a robust view of your data from time tracking and billable hours to clients and matters. 

Team Collaboration and Training

Legal data analytics is a firmwide initiative that involves lawyers and support staff. All team members should be trained in the importance of legal data analytics and how to use your data analysis tools for insights. 

Cloud-based law practice management software offers a secure, centralized source for all your firm data that staff can access at any time, from anywhere. If you want some users to have limited access, you can customize permissions and track activity for full control and visibility.

Continuous Improvement

Legal analytics is an ongoing process. You should conduct regular sessions with staff and stay updated on the latest trends and developments in legal data analytics to enhance your processes and continue to derive meaningful insights.

Final Thoughts

Legal data analytics changes the way law firms and legal professionals use their time, strategize cases, enhance the client experience, and make informed business decisions. As the legal market becomes more competitive, legal data is the key to attracting clients, staying profitable, and encouraging future growth.

Legal processes can be time-consuming and difficult to manage, especially with conflicting deadlines, missing documents, and ever-evolving data.

Instead of trying to make sense of the chaos, law firms are increasingly relying on legal project management – and legal project management software – to streamline processes and manage them effortlessly.

What Is Legal Project Management?

Legal project management is the process of defining the parameters of a matter, planning its course, managing it, and once complete, evaluating how it was handled from the firm and client perspective.

For many lawyers, legal project management is part of their work, but it’s done only in part without a defined structure. Legal project management is becoming more commonplace in firms looking to take a systematic approach to their matters.

Ultimately, legal project management is driven by the need for communication within the firm and with clients, as well as the rising demand for efficiency from clients. It relies on three core principles:

• Front-end planning is better than damage control
• Keep all crucial stakeholders in the loop all of the time
• If it can’t be measured, it can’t be managed

The five steps of legal project management include:

1. Define Project Objectives and Scope

• Gather information to understand the client’s business, needs, and expectations
• Understand the project phases, deliverables, and outcomes with the client
• Assess scope, time, and cost
• Agree on billing arrangements
• Analyze potential risks that may impact the project

2. Project Planning

• Define project phases, tasks, and standards
• Develop timelines and milestones
• Select the project team
• Budgeting
• Gather appropriate tools and resources
• Plan communications

3. Plan Execution

• Delegate tasks to lawyers and staff
• Give timely, objective, and specific feedback
• Manage team performance, dynamics, and morale
• Ensure collaborative team and client communication

4. Monitor and Measure Progress

• Track progress of phases and tasks
• Avoid scope creep and redundancies
• Ensure budget is aligned
• Make project adjustments when unexpected events occur

5. Post-Project Review

• Evaluate outcomes in terms of agreed project scope
• Identify what worked and what could be improved
• Discuss the experience with clients for feedback
• Identify the lessons learned, resources needed, and surprises to be avoided

Benefits of Legal Project Management

Most lawyers will insist they already have aspects of legal project management in place, but formal legal project management is about systemizing the process. Here are some benefits:

Improved Efficiency and Productivity in Legal Projects

Legal project management improves efficiency and productivity by delegating work appropriately, providing techniques to improve workflow, and creating a streamlined process that moves the project through each phase.

Enhanced Client Satisfaction and Communication

Client expectations are one of the driving forces of legal project management, which include value, efficiency, communication, and predictability. Adopting a legal project management process provides clarity for the resources, time, and costs involved, helping clients prepare.

Effective Budgeting and Cost Control

Because legal project management involves planning and scheduling in advance, it helps manage the uncertainty surrounding scope and budget. This is especially important with alternative fee arrangements.

Risk Mitigation and Quality Assurance

The entire project can be scheduled in advance with defined scope, timeframe, and costs. It becomes more predictable in terms of budget and completion time, even if the unexpected disrupts the flow.

Streamlined Collaboration and Team Coordination

With legal project management, everyone involved in the project is aware of the tasks and timeline to ensure better accountability, collaboration, and coordination.

What Is Legal Project Management Software?

Legal project management software helps you align your day-to-day legal operations and coordinate your team efforts in a transparent process. All projects, tasks, assignees, and documents are held in a centralized location for easy monitoring.

Features of the Best Legal Project Management Software

The features you need for your legal project management software can vary, but there are a few features that are a must:

Task and Milestone Tracking

Collaborative tools help you assign, track, schedule, and prioritize your tasks and responsibilities for streamlined project flow.

Document and File Management

Document and file management are key to every aspect of your project. Your solution should have a document storage system that ensures your team can access the information they need efficiently.

Time and Expense Tracking

Time and expense tracking keeps your costs under control and provides visibility into the project budget. This feature allows you to record time, track internal hours, and stay on top of staff, contractors, and consultants for better precision.

Resource Allocation and Scheduling

The efficiency of your project depends on scheduling the necessary tasks and the resources required to fulfill those tasks. Resource allocation and scheduling features ensure that allow you to plan your project resources and tasks and align them to your project timeframe.  

Reporting and Analytics Capabilities

As mentioned, if it can’t be measured, it can’t be managed. Reporting and analytics are important for gaining insights into your work progress and team performance. Getting detailed insights about your firm’s performance can help influence staff bandwidth, budget, and more.

How to Find the Best Legal Project Management Software for My Firm

There are plenty of options for legal project management software, all with different features and capabilities. Here’s what you should consider:

1. Assess Your Firm’s Specific Needs and Requirements: Just because software has a lot of bells and whistles doesn’t mean that it’s right for your firm. First, you have to determine what your firm needs and what features are most important to you, then you can begin to evaluate your options.
2. Research and Compare Different Software Options: Compile a list of suitable software solutions based on the features and other factors that are important to you. Compare the different options in terms of costs, subscription plans, features, integrations, support, and more, so you can create a short list of your best options.
3. Consider Factors like Cost, Scalability, and User-Friendliness: Maybe your firm is small and you have a limited technology budget, but that’s just right now. If you don’t want to go through this process again in a few years, choose a solution that’s scalable to support your firm’s growth. Many software providers offer tiered subscription plans that unlock features as you upgrade, ensuring that your features and capabilities are aligned with your budget. User-friendliness is a must, no matter how small or large your firm is. You want your staff to be able to perform their tasks with ease and little frustration to increase firm-wide adoption.
4. Read Reviews and Seek Recommendations from Industry Professionals: Reviews from real-world users offer great insight into the possible software solutions for your firms. Pay attention to not only the good reviews but the flaws users mention to anticipate possible challenges and learn how well the provider supports its customers. Other law firms and colleagues can be useful in finding good solutions. Ask colleagues you trust if they use project management software, and if so, which ones they’ve tried. Ask for honest opinions on what they liked and didn’t like, which can inform your decision.
5. Test and Evaluate Software Through Demos or Trial Periods: Once you have a few options narrowed down, sign up for some demos or free trial periods. This will give you an opportunity to test out the software and get first-hand knowledge of its usability and features before committing.

Legal Project Management and Law Practice Management Software

No matter what legal project management solution you choose, it’s important that it integrates with your practice management software. Otherwise, you could get bogged down with transferring information and details from one to the other – leaving opportunities for gaps and errors.

Better yet, you can choose a solution that has project management capabilities built in, like Bill4Time. You’ll find everything you need to manage your firm’s matters within one centralized solution, as well as other valuable features like time tracking and client management. Together, these powerful features help you reach the level of efficiency your firm needs and your clients expect.

Law firms are businesses and modern consumers expect the same security, convenience, and flexibility to pay for legal services as they do for other transactions. If your firm doesn’t offer a variety of electronic payment options, you could be falling short of client expectations – and missing out on clients as a result.

Learn more about the options for electronic payments for law firms, their pros and cons, and how you can reap the benefits of a more streamlined payment system with law firm billing software.

The Importance of Electronic Payment Methods at Law Firms

Electronic payment encompasses virtually all technology-enabled methods of handling transactions, whether through credit card, eCheck, or bank transfer. These methods are similar to accepting cash, paper checks, or money orders, except they exist in the virtual space and not the physical one.

The COVID-19 pandemic ushered in more acceptance of electronic payment methods to avoid handling cash or physical cards, but clients have been moving in that direction for a while now. According to the 2023 Future of Payments Survey from Onbe, a market-leading corporate disbursements platform, 70% of respondents prefer to receive payments digitally and 73% prefer to shop and pay with digital methods.

This trend clearly illustrates that consumers are seeking electronic payments, even when it comes to law firms. It’s essential for your firm to modernize and offer these payment options to promote a better client experience and attract and retain clients.

Types of Electronic Payment Methods

Credit and Debit Cards

Credit and debit cards offer a convenient way for clients to pay. With a credit card, they have a revolving line of credit to pay a large bill at once and make more manageable payments over time. Debit cards function like checks or cash, allowing the client to pay a bill directly from their bank account.

According to a TSYS survey, 75% of people prefer to make online payments with a credit or debit card. It also revealed that 65% of people expect credit or debit cards to be a payment method option, even for law firms.

Pros:

• Credit and debit cards are familiar to clients and tend to be the method they use to pay for virtually everything in their day-to-day lives.
• They’re more convenient and offer a quick, easy, and secure method to pay with the peace of mind of knowing their bank or credit provider has them covered for disputes.
• For your firm, credit and debit cards get your firm paid faster. Clients are more likely to cover their bills quickly if they have a convenient method – especially if you have a secure payment platform.

Cons:

• Credit and debit cards have processing fees that you’ll either need to cover yourself or charge to the client, which is a negative aspect of the experience for clients.
• There’s a risk of fraud, but that can be mitigated with a secure payment processor.

eChecks

Electronic checks, or eChecks, are a digital version of a conventional paper check. eChecks are delivered via the Automated Clearing House, or ACH, which is how many people get their direct deposits from employers.

Conventional paper checks are falling out of favor with clients, so it’s possible that eChecks will replace them completely. According to a survey, 55% of consumers don’t use or rarely carry their checkbooks. Among young consumers, 61% have never written a check.

Pros:

• ACH processes eChecks safely, securely, and quickly, typically over the Internet.
• eChecks are safer than conventional checks, as they can’t get lost in the mail or be forged.
• eChecks have a faster delivery than a paper check that needs to be mailed or dropped off.
• The cost of processing an eCheck is much lower than a conventional check.

Cons:

• eChecks carry a risk of fraud, but this can be reduced with a compliant payment processor.
• Processing times are a bit slower than other forms of payment, such as credit cards.
• Lawyers need to follow ethical guidelines with eChecks.

Virtual Cards

Virtual payment cards are an option that’s similar to having a debit card or credit card in that they have a card number, CVC, and expiration date, but they’re only valid for one use for a predetermined amount.

Pros:

• Virtual cards are single-use for a predetermined amount, so they’re less susceptible to fraud than credit or debit cards.
• Companies can control the amount and limit unauthorized spending.

Cons:

• Predefined limits and expiration dates on virtual card payments restrict law firms’ control and flexibility.
• Technical issues with virtual card systems can disrupt payments, causing delays or failures.

Bank Transfer

Bank transfers are a simple way for clients to transfer money directly out of their bank account using their routing and account numbers. The entire process is straightforward and secure.

Pros:

• Bank transfers ensure that the funds are available.
• They can be processed quickly.
• Bank transfers are processed as wire, electronic transfer, or eCheck.
• You’ll receive an instant notification that a payment is in progress.

Cons:

• Bank transfers can face delays and errors, causing issues for law firms requiring prompt payments or fund receipts.
• Transaction fees for bank transfers, particularly international or currency conversions, can impact a law firm’s financial efficiency over time.
• Bank transfers lack transparency, making it difficult for law firms to track and reconcile financial transactions in real time compared to online payment platforms.

Mobile Payments

Mobile payments have increased in popularity with the ubiquity of the smartphone. According to data from Juniper Research, mobile contact payments will exceed 49 billion in 2023 and have grown 92% over the past two years.

Mobile pay is similar to an actual wallet and holds all the user’s credit card and banking information, except it’s stored securely in a virtual space.

Pros:

• Mobile pay is more convenient than a physical wallet since everything is stored on a smartphone.
• Clients can pay from anywhere when it’s most convenient for them.
• Clients have the option to pay with whichever method they prefer, from ACH to credit cards.
• Law firms get paid faster because clients have all their payment information at their fingertips.

Cons:

• Limited acceptance of mobile payments restricts law firms’ payment options and can cause inconvenience.
• Mobile payments pose security risks, requiring law firms to implement robust security measures.
• Law firms relying on mobile payments are susceptible to disruptions due to technical issues and connectivity problems.

Improve Collections at Your Law Firm with Bill4Time

If you want to modernize your firm to accept digital payment methods, Bill4Time’s billing, payment, and law firm invoicing software helps you support these goals. 

The native payment processor, Bill4Time Payments, allows you to accept online payments and process all transactions within the same secure system you manage your practice. Industry-low transaction fees and best-in-class payment technology get your firm paid 70% faster than average billing practices. 

With Bill4Time Payments, your firm also benefits from: 

• Legal-specific software that maintains compliance with accepting online payments 
• Custom payment links that can be added to invoices and emails to get paid from anywhere
• Payment plans with automated reminders to reduce large bills so clients pay their bills on time
• Robust reporting to easily track and allocate payments to the proper client or matter

Bill4Time reduces the administrative burden often associated with the billing and collections process by streamlining how your firm gets paid. If you’re ready to adopt online payments without worrying about compliance, you can book a demo today!