September 01, 2020 The Finance Issue

Accepting Credit Cards to Improve Accounts Receivable

In the wake of a global pandemic, law firms make better use of credit card processing systems.

Dave S. Christensen
A stack of credit cards sits on a blue table.

A stack of credit cards sits on a blue table.

via Zhonghui Bao / iStock / Getty Images Plus

For many law firms, accepting credit cards is usually a distant third choice behind wire transfers and checks—if they are accepted at all. Often the reason given by firms is that they do not want to give up the processing fee (typically about 3 percent), and therefore it becomes a payment of last resort. Other firms haven’t set up a credit card program due to the perceived learning curve in establishing a relationship with the processors and teaching staff how to process the transactions.

However, in the wake of the global pandemic, and the economic uncertainties that it has created, having the ability to receive funds securely and reliably within a day may outweigh the processing fees. We asked Jeff Shavitz, the co-founder of LexCharge LLC and now strategic consultant to the company (now part of Rocket Matter), in Boca Raton, Florida, to share his insights into how law firms can make better use of credit card processing systems. Shavitz has been involved in the credit card industry for 20 years, has founded and sold several payment processing companies, and has advised payment companies, associations and private equity companies on investing and developing partnerships in this industry.

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