Should Lawyers Take Credit Cards?

Credit cards are all over the place today- it's not particularly profound of me to tell you that. However, people use their credit cards to buy fast food and milk at the local deli- should they also use a credit card to pay for legal services?

Law firms that support credit cards like them because they allow people to access funds that they don't normally have in a liquid form (i.e. in a bank account). Also, there are times when people who don't have a lot of liquid assets in any form need legal services, and that's the only way they can pay for them. People also budget their expenses out on a credit card nowadays, much like people used to use a check register.

It's convenient, but there is a cost. Getting set up with the supplies and the credit card machine can cost several hundred dollars. There are monthly fees associated with the service, and credit card companies take anywhere from 1.5% to 3.5% or more of each transaction. Also, credit card companies will allow a "chargeback" to their customers whereby they can pull the money directly from your account in the event that the customer lodges a grievance against you. If you don't have a high-volume practice, that money can come straight out of your checking account and can cause cash flow problems for you.

There are some businesses where it helps to know that the money is available, and that people can pay you. Those businesses would do well to accept credit cards. My practice is such that, at the present time, I do not accept credit cards and am not considering doing so in the near future. However, one never knows how the market would develop, and it is possible that it will become a staple of my business down the line.