Security is of utmost importance for law firms. In 2023, three of the top 50 law firms had their data breached by ransomware. But it’s not just major players who are impacted. In 2022, firms with 2 to 9 lawyers reported a 39% incident rate. 

And one of the biggest risks in cybersecurity attacks? Financial data. 

Now more than ever, payment security must be prioritized for law firms to ensure the safety of their clients and the health of their business. With the majority of law firm payments made online, legal transactions must be enacted according to the letter of the law. 

Enter CosmoLexPay: a robust online billing and invoicing system made exclusively for lawyers. 

The CosmoLexPay difference: why CosmoLexPay stands out from competitors 

The payment process requires clients to exchange sensitive financial information with law firms, meaning that security is of the utmost importance during this stage of the client relationship. To this end, CosmoLexPay stands out from other legal payment processors for several compelling reasons:  

• CosmoLex offers expansive data protection measures: As a cloud-based software, CosmoLexPay follows industry best practices for security, including payment card industry (PCI) compliance and multifactor authentication via the Microsoft Authenticator app, a layer of security that only allows authorized users to access the payment system.  

• CosmoLex enhances security with access to client portals: Law firms that use CosmoLex are able to streamline and secure all client communications, including payments, thanks to its built-in client portal. The client portal protects the exchange of sensitive information between law firms and clients within the CosmoLex firewall.  

• Integrated system: CosmoLexPay is part of CosmoLex’s broader law practice management software, creating a fully integrated solution that encompasses case management, marketing tools, accounting, billing, and payments. Because CosmoLex is so deeply integrated, there is less need for data migration between systems—and less risk of data loss at each step.  

Built with security first: CosmoLex’s expansive compliance measures  

Even though online payments are the norm, data must be encrypted and protected to prevent breaches. CosmoLexPay is built on a credit card processing system that follows PCI Compliance Security.  

Why is PCI compliance important? PCI provides outlined requirements for how companies must process, store, or transmit credit card information. 

There are twelve total requirements for PCI compliance, including:  

• Robust firewalls 
• Password protections 
• Two-fold protection of cardholder data 
• Encrypted data only sent to known locations, never to unknown ones 
• Restricted data access to “need-to-know” parties 

How does CosmoLexPay ensure the security of financial transactions in legal practice? 

CosmoLexPay ensures the security of financial transitions in legal practice by following PCI compliance. The CosmoLex system is System and Organization Controls (SOC) 2 compliant with platform security that uses bank-grade 256 SSL (or Secure Sockets Layer) encryption.  

It’s not just CosmoLexPay that follows strict security measures, though.  

CosmoLex’s comprehensive legal practice management software relies on account-level security, two-factor authentication via SMS messages, and role- and user-level access privileges to safeguard both firm and client data. Only people who are allowed access to the information within the company will see it.

How does CosmoLexPay comply with legal standards and industry regulations? 

Law firms must remain compliant with the legal standards set by bodies such as the Internal Revenue Service and the American Bar Association. These regulations may change from state to state, but every law firm must meet the three following: 

• A firm’s funds cannot be exchanged with a client’s funds held in a trust  
• Detailed and correct records of all trust transactions must be collected by the law firm 
• A client’s trust funds may only be used for their legal matters  

Legal-specific accounting software such as CosmoLex allows for seamless compliance with online payment processing. CosmoLexPay automatically integrates, making it easy and cost-effective to complete retainer payments, fund reconciliation, and invoice payments. 

Bookkeeping for trust accounting is built alongside CosmoLex’s other services, so it can all be used together to remain compliant. With CosmoLex and CosmoLexPay, you can:  

• Track individual client ledgers  
• Prevent common trust accounting mistakes, such as ledger overdrafts 
• Process online payments using the trust fund 

Additionally, backups of all relevant data are automatically done. These follow encryption protocols and have the necessary redundancies to maximize security.  

Are there any notable examples of law firms that have experienced improved payment security with CosmoLexPay? 

The lawyers at Kraemer LLP like everything about CosmoLex. They’ve achieved more accurate cost recovery, and their clients pay invoices faster.  

Additionally, their clients enjoy the added security of the client portal, which has increased their comfort and confidence in the firm. Kraemer LLP has seen its investment in CosmoLex return many times over. 

Enhanced client trust with secure client portals 

Encourage a high opinion of your firm from your clients with the self-service, online client portal from CosmoLex.  

CosmoLex’s client portal is encrypted and can only be accessed through your client’s unique login. Once the portal is created, the lawyer or other staff members who have been granted access can choose to include documents, events, tasks, notes, and even chat messages.   

Importantly, CosmoLex’s secure client portal enhances the payment process. Not only can clients submit payments via the portal, but they can ask billing questions, check invoices, and update saved payment information.   

What steps can law firms take to enhance client trust through secure payment processing with CosmoLexPay? 

Security shouldn’t be an “out of sight, out of mind” situation. Client trust in your firm grows when you remind them how seriously you take protecting their data.  

One example of this is CosmoLex’s simple-but-important messaging when clients submit a payment. As the payment processes, the top of the window reads, “This is a secure 256-bit SSL-encrypted payment. You’re safe.”  

Small details such as this build client confidence, reminding them that CosmoLexPay uses bank-level security at every stage of their online transactions.  

Protect payment data within a comprehensive integrated solution   

CosmoLexPay allows for secure integration with the work you complete daily within CosmoLex. This creates easy transaction processing and minimizes administrative time, allowing you to secure more billable hours. 

Legal workflow integrations include: 

• Payment processing reports for streamlined accounting 
• Account management for complex client trust accounts and IOLTA accounts 
• Securely saved client payment information for optional automatic payments 

​​Can CosmoLexPay be seamlessly integrated into existing legal workflows? 

CosmoLexPay works seamlessly with CosmoLex, an industry leader in legal practice management software, to simplify legal payment processes and streamline transactions. Manage the entire payment flow and automate past-due reminders, as CosmoLexPay does the heavy lifting for you to ensure that clients pay on time. 

Try CosmoLex for free today 

Streamline operations for your law firm at a reasonable price with CosmoLex. Our comprehensive legal practice management software follows a simple pricing model. Attain the software tools you need all in one place and sign up for a free trial of CosmoLex today.