Running a successful law firm is a delicate balancing act. Like an acrobat holding multiple spinning plates aloft, you must balance your legal work with various business tasks, including managing client payments, legal accounting, and trust funds.  

Adopting best practices for these tasks allows you to maintain regulatory compliance and enhance client satisfaction. It can also improve your firm’s overall financial health and make payments more secure for everyone. 

Of course, implementing best practices can sometimes feel easier said than done. But some key guidelines are surprisingly simple (and beneficial). Take, for example, keeping law firm client payment methods on file. 

The advantages of keeping client payment methods on file 

Even law firms that have long accepted credit card payments may not necessarily store client payment methods on file. Not offering this is a missed opportunity, though. Here are some of the major advantages of storing client payment preferences.  

Streamlined payment process 

Keeping client payment methods on file simplifies the payment process significantly, both for your client and your firm.  

Instead of requesting payment information for every transaction, you securely store clients’ credit card details or bank account information. This practice enables swift and convenient payments for legal services rendered and potentially cuts down on the likelihood that the information can be intercepted or mishandled. By streamlining this process, you save both your team and your clients valuable time and effort and add a layer of security. 

Prompt and reliable payments 

You can set up automatic billing for recurring services or ongoing representation with stored client payment information.  

Billing automation ensures prompt and reliable payments, reducing the risk of delayed or missed payments that could affect your firm’s cash flow and saving you a manual billing step. Clients also benefit here, as they don’t have to worry about missing payments or racking up late fees. 

Enhanced security measures 

All businesses, law firms included, are understandably concerned about the security of storing sensitive financial data.  

However, with the proper security protocols and encryption in place, keeping payment methods on file can be safer than traditional paper-based payment methods. Leading legal-specific software can offer top-notch security measures to protect sensitive client data, including billing details, providing both your firm and your clients with peace of mind. 

Best practices for keeping client cards on file 

Planning to implement stored client payment methods? You can look forward to easier financial workflows, increased client satisfaction, and better security protocol. But make sure that you  adhere to the following best practices as you roll out this new service offering for your clients.  

Communicate with clients 

Firms should obtain explicit consent from clients before storing their credit card information. You should clearly explain both the purpose and the benefits they will receive, such as easier or automated transactions and less worry that they will be contacted over and over for their payment information. Provide them with a transparent explanation of your security measures and reassure them that their data will be securely handled. 

Know what data you can—and can’t—store 

While it might seem easiest to store all client payment information so you can run payments in one fell swoop, there is some information you shouldn’t store.  

Here’s a quick overview: 

Information you CAN store 

• Card holder name  
• Expiration Date 
• Primary account number  
• Service code (data within card’s magnetic stripe)  

Information you CAN’T store 

• Card validation value (CVV) code  
• PIN and PIN block  
• Full magnetic stripe data 

Note that any payment information you store should be encrypted. Encryption provides a vital layer of security for client payment information, as well as the personal information associated with their account.  

Choose the right software to support payments 

Not all payment processors provide the right level of support and service for law firms. Because of the nuanced regulatory compliance demands of the legal industry, law firms should use a legal-specific payment processor.  

Legal-specific payment service providers, such as CosmoLexPay, assume responsibility for securely processing, managing, and storing customer credit card data. These platforms alleviate the burden on your firm, allowing you to concentrate on managing cases, expanding your customer base, and accepting credit card payments worry-free, as they ensure protection against potential data breaches and their potential repercussions. 

Limit access to credit card data 

Restrict access to stored credit card information to only essential firm personnel. Implement access controls and user permissions (even at the smallest firms) to ensure that only authorized individuals can view, process, or modify credit card details to reassure your clients that no one has unnecessary access to their financial data. Your firm can regularly review and update access permissions to minimize the risk of internal data breaches. 

Comply with global data security standards 

The Payment Card Industry Data Security Standard (PCI DSS) is a set of guidelines designed to ensure the secure handling of credit card information. Businesses that store, process, or transmit credit card data should comply with these requirements to prevent data breaches and protect sensitive client information. You can regularly assess and validate your compliance to maintain the highest level of data security or use specialized tools that do this check for your firm on an ongoing basis. 

Enjoy convenience and compliance with CosmoLex 

For law firms seeking to improve their billing process, accepting credit cards and offering electronic payment options make for an easy win. But you shouldn’t let your firm be at the mercy of traditional credit card processors and their fees.  

When you use comprehensive legal billing software, credit card challenges are a thing of the past. CosmoLex includes credit card processing with no additional fixed monthly fees. Online invoicing and retainer payments are simple and secure, better for you and your clients.  

CosmoLexPay is a legal-specific payment processing software designed to support you in accepting credit cards without risking accidental ethical or regulatory violations. CosmoLexPay lets your firm accept online payments and track them to ensure they’re properly managed in billing and accounting to keep client trust ledgers and books accurate. Sign up for your free trial to get started today.