Merchant Processing Account
A BLN member would like to start accepting credit cards as payment for legal services and asked whether I could recommend a merchant processing vendor. Our firm does not accept credit cards, but this is a topic that seems to be coming up more often. I thought other BLN member may be able to make some recommendations, which I can post on the LEXpertise website.
Do any of you accept credit cards for professional services? Are there vendors you would recommend?
[RPG: Excellent list of responses. Be sure to read James Bolan's comment and the article on ethics issues relating to gredit card payments]
Responses: 4/16/09
Wayne Johnson: I might suggest PayPal. It is secure, safe, online and gives the payee a sense of control and options for funds (bank accounts, credit cards). As to the “seller” there is an additional cost but the monies are there, can be confirmed and available for immediately use.
Roy Watson: After more than 30 years without the ability to accept credit cards, I have finally yielded to the urgings of my colleagues who say that it is a “must have” service for today’s law office. I did explore a number of programs (be CAREFUL on the pricing / small print). Since I am not, and would not expect to be a “volume” user, I tried to find the least expensive way to doing it for those few (really rare – at least for now) times when someone asks to pay me via credit card. I found Costco to have what I felt would be the “best” program for my limited use, however after going through all of the steps to sign up and filing my application, it appears they have now lost it, and I will have to do it all over again! (This does NOT inspire confidence.) I have not yet re-submitted my application, so I would be very interested in hearing from others on this.
Responses: 4/15/09
Jack Derby: Not so much for day to day services, but for our events and things like Boot Camps, we use Acteva, which is excellent. They handle both the front and the back end for us.
Robert Plotkin: I use CoCard and have been very happy with them. The contact person is Mike Roux, roux1@comcast.net. He was referred to me by Van Smick, another BLN member. They integrated the payment service into my web site, which allows clients to pay directly from my web site. Clients can also pay by other methods, but I only use the web site.
Rick Dowd: Thank you very much for your inquiry relating to merchant services and credit cards. I have a valued business partner and colleague, Mary Beth Eddy of our RBS WorldPay group that can likely assist you. I will ask that she contact you directly and address the specific need of your Boston Lawyers Network (BLN) member and, perhaps more broadly, what we may be able to do for other members that have a similar interest. Thank you again for contacting me and requesting assistance. As always, I remain available to you or any of your BLN network members for assistance.
Prasad Thammineni: As you know we process credit cards and as part of implementing that process we reviewed a number of providers. I am attaching a spreadsheet that details our analysis of a number of providers, their rates and how they stack up based on how much you generate in monthly revenues. [SEE ATTACHED FILE.] Please use this sheet as a starting point since this data is a year old. We choose Paypal as it provides subscription billing services and the fees are predictable. Fees (discount fee, per transaction fee, monthly fee) vary from vendor to vendor and based on type of card used.
1. Paypal Payflow gateway:
https://www.paypal.com/cgi-bin/webscr?cmd=_payflow-gateway-overview-outs...
Paypal in addition to consumer payments we are familiar with also provides a payment gateway. They charge one processing fee irrespective of the credit card you use (Visa, Master, Amex, International etc). They also provide subscription features, that is, accept the card once and charge them a recurring fee every month
2. Costco: http://www.elavon.com/acquiring/costco/
Costco provides the best rates among credit card processors. If you don't need subscription services, I would recommend going with Costco.
3. Any of http://www.authorize.net/ resellers
Authorize.net is one of the largest payment gateways and there are a number of resellers that offer Authorize's product. You can find the list of resellers on their website. Each reseller is slightly differnent in what they charge. You have to shop around.
4. Bank of America
BOA also provides credit cards services and is good for those who need a terminal.
Eric Chodkowski: I do not accept credit cards, but Dan Edmonds sets up businesses to accept credit. His email address is: mrplastic@cocard.net.
Jason Gish: I have not accepted payment by credit card but have looked into it in the past. If this is only an occasional occurrence, using a company that doesn’t charge an account set-up fee or maintenance fee is ideal. I believe that Paypal for business has this structure. Their fees are basically a percentage of the amount charged to the credit card. I would consider requiring the client pay the fee, which can be as high as 3% of the amount charged. See the following webpage https://www.paypal.com/us/cgi-bin/webscr?cmd=_display-fees-outside
James Bolan: Attached is an article from Bar Counsel from some years ago that may be of assistance in dealing with the legality and mechanics of credit card charges. Holler if there are any questions as a follow up.[SEE ATTACHED FILE]
Sue Weiss: Although I don't accept credit cards (yet), here are the two merchant processing vendors that have been recommended to me: (1) Practice Pay Solutions: http://www.practicepaysolutions.com/ and (2) 1 Shopping Cart: http://www.1shoppingcart.com/.
Jim Hassett: I have used several, and have been happiest with PayPal, which we’ve now been using for about 2 years.
Vanessa Schaefer: I *highly* recommend anyone in need of credit card processing contact Beth Menezes. Beth provides wonderful service at the most affordable prices. She will review your current plan (if you have one) at no cost, and honestly let you know if she can reduce your fees. Please refer members of BLN: Beth Menezes, beth.menezes@e-hps.com, 617-275-3025, Heartland Payment Systems, heartlandpaymentsystems.com
Watertown, MA. As an FYI, I am sure Beth would be interested in coming to a BLN meeting and giving a quick overview, if you think enough people would be interested.
Anja Bernier: Advantage Bank Card Services might be a good solution. I know one of the owners and recommended their services to one of my clients who is now using them.
Michele Liu Baillie: I’ve researched PayPal before. I have not signed up for a merchant account with them, but they seem to have several options for reasonable costs, including one that does not require your own website (invoice by email). Since I haven’t actually used them, I can’t “recommend” them, but I would suggest they take a look.
David Rubin: I am investigating this issue for my practice and contacted my bank on how to do it. The reason to do it is the ability to accept payment from clients that do not have the cash to pay a fee. I know of a few other attorneys that accept credit card payments. The problem with it, however, is that there are a lot of bank fees and electronic security issues that you have to contend with so that unless you have sufficient volume, it may not be worth the trouble.
Nick Soter: PC Law users can take credit card payments - no charge for the account, typical processing charges occur.
David Friedman: We use CCs for about half of our revenue. My suggestion is to see what his bank offers/recommends. It’ll make his life easy to use their solution since the funds will simply land in his account. Also, odds are they’ll be able to accept electronic checks too. We actually use multiple processors. If the client wants to use a simple solution, other than their bank, I recommend PayPal or Google Checkout.
Lucy Lovrien: Someone in the group is sure to know the answer. However, if you want, some of my suite mates take credit cards and I can ask them about it.
David Reibel: You should speak with Jonathan Ellman, the General Counsel at Litle & Co., a payment processor in Lowell. His number is (978) 275-6647 and his email is jellman@litle.com.
Responses: 4/14/09
Daniel Batterman: I use Yourpay.com for on-line payments. I don't know how it compares to other merchant vendors in terms of cost and convenience, but I haven't had any problems thus far with it. Anyway, I hope this is helpful.
Monique Kornfeld: I found a competitive vendor through my payroll services company, Advantage Payroll. They provide excellent service as well. Please have the member contact Bruce Patz 978-318-9990 for more information. He is a wonderful resource and is very flexible about meeting at the client's worksite.
Jay Brooks: Paypal's Merchant Account works just fine for the few times I use it. You email an invoice and they pay without having to be a paypal member. It costs 3%, but no c/card numbers, no machines and direct wire to your IOLTA.
David Sebestyen: I highly recommend the services of Thomas Nardone of Advantage Bankcard Services (781-297-5111 ext.11). Skyrope has been very happy with Tom's unbiased approach and sound advice and service in this area. I recommend him with confidence to the lexpertise community!
Jenny Wilder: Bruce Patz at Advantage also provides merchant services in addition to payroll. His contact info is: Bruce Patz, Advantage Payroll, 747 Main Street, Suite 222, Concord, MA 01742, 978-318-9990 E: b.patz@mypayrolldepartment.com
Calvin Wilder: Jenny forwarded me your email. I know Frank Durant of Velocity Funding of Sudbury. He is a stand-up guy who may be able to help your fellow BLN member. Frank can be reached at frankdurant@velocityfunding.com and 888-818-3552 x203.
George Halsey: If you use Quickbooks Online- they have an option built in to their system that allows you to engage a Merchant Processing Vendor and qualify for all credit cards. I have this service and my bills have a note that offers payment by credit card but so far- no takers. I only have business clients and they pay by check. The service is quite expensive if it is not used so I may drop it. But it was fairly easy to set up.
Van Smick: I have researched this question high and low and the best deal out there is CoCards and the person who has been great with many of my clients is Mike Roux (978) 337-7126 mroux@cocard.net www.cocardsystems.com. Their rates are the best on credit & debit cards as well as ACH transactions. I strongly recommend Mike.
I am late to this dicussion but I thought better late then never. I would also say that the following discussion relates to situations where money will be placed in a trust account. For this situation, I actually like the MBA’s affiliated Law Firm Merchant Account which is set up with law firms in mind. It addresses, to the extent possible, the issues raised by the BBO with using credit cards to accept retainers. See Jim Bolan's comments. In a rather old article the Office of Bar Counsel stated that it “strongly discourages accepting payments of retainers by credit cards. The benefits may be more than outweighed by the regulatory, bookkeeping, and confidentiality problems. To avoid these pitfalls, lawyers are well-advised to consider limiting their acceptance of credit cards to earned or flat fees.” See http://tiny.cc/i5oGC. However, since that time, Affiniscape Merchant Solutions has addressed the concerns discussed (at least to the extent that is possible. Please see the Affiniscape FAQs at http://tiny.cc/IJQp7. For example, this program will, if a chargeback is determined to be appropriate, take the money from your operating account and not your IOLTA account so there is no improper use of other client’s money. A question that appears to concern some, is if client confidentiality is adequately protected in the case of a client request for a chargeback and the credit card company then has to review the detailed records to determine how to resolve the dispute. I do not know the answer to this question. However, it may be possible to address this issue in a fee agreement. If you decide to use this type of Law Firm Merchant account, then I would ask the company these questions and if you are not satisfied then ask the Office of Bar Counsel.
If you are having problems in opening merchant accounts than you can easily solve your problem by your own all you need is to search on internet a little bit. There are numerous sites which are offering Merchant Account without filling number of forms.