(This is a promo for our new sponsor, LawPay. BUT I have wanted to write a post on why it is just good business to accept credit cards for payment – when done properly – for a very long time! Now I get to combine the two and for your benefit!)
On average, consumers spend 30% more on their purchases when they use credit cards versus when the purchase can only be made with cash or check. When McDonalds started accepting credit cards, sales went from $4.50 to $7.00 per transaction. That’s a whopping 56% increase!
Not only are credit card payments more convenient for potential clients. but an abstract pledge of payment in the future is very different than parting with physical cash. Clients are more inclined to pay your retainer or outstanding fees faster when they are not immediately parting with cash and can simply ‘put on their card’ to be worried about later.
It’s important that you give your customers as many convenient ways to pay you as possible. Most people know that they’re protected by the credit card processing companies, since they’ll get their money back if the merchant does not live up to his end of the bargain. The overall result, as confirmed in studies, is that businesses that accept credit cards can see increases of sales by 30%+.
Understanding this psychology has unfortunately created a nation of debtors when irresponsibly used BUT the merchants who accept credits cards are paid immediately and substantially more. For service professionals, their receivables are reduced and more time is spent on doing business which has already been paid for then on chasing fees which ultimately go uncollected. How many of you already have your cell phone bills on automatic payment to your credit card? Easy, right? Smart for the cell phone company. That six week float on the credit card is one you should be capitalizing upon to keep your cash flow steady, your receivables almost non-existent, and all that time you now save on billing and collection should be going towards working on your clients’ cases and marketing for more business.
We have waited a long time to find the right credit card processing company to sponsor Solo Practice University and we finally found it. LawPay. LawPay is recommended by over 60 bar associations because they adhere to all rules governing trust accounts and a lawyer’s affirmative obligation not to commingle funds. LawPay also provides a list of all published opinions on utilizing merchant services on their site. Check it out and see what your state says.
- No annual fees
- No Contracts
- No Minimum Processing
- In compliance with ABA and State guidelines
- Members save up to 25% off standard bank fees
- Superior Customer Service
- Solo Practice University students save even more!*
(*SPU does not collect any affiliate fee. Any benefit we could have gotten instead goes directly to the our students in the form of substantial savings – more than enough to cover the SPU tuition for more than a month.)
There is no longer any good reason not to utilize credit cards in your practice. It has gotten to the point where you are actually harming your practice financially if you don’t provide it as an option. Oh, you don’t want to pay processing fees? Well, isn’t it smarter to have more business, no receivables, no collections and cash in hand for the cost of a transaction fee? Yeah. I thought so. Oh, one last thing. I’m sure you might be worried about chargebacks? Guess what? LawPay fights for you should there be a chargeback so you can spend your time being a lawyer instead of a collections agent. Makes picking up the phone to inquire to see if LawPay is right for your practice a no brainer!
If you’re using LawPay, let us know in the comments below. We’ve already had people on our Facebook page say they love them. Let’s hear what you have to say!