About Attorney Credit Card Processing & Trust Accounts
While many might not view a Law Firm as a typical “merchant”, they too have a practical reason to accept a variety of payment methods for customer & client convenience. For the most part, an Attorney credit card processing solution would be a variation of a standard “retail” merchant account, also known as “Card Present” or “CP.” As the card is generally present, the rates are discounted due to a reduced risk of fraud. But there is a unique requirement that Attorneys have to account for, and that has to do with money deposited into “Trust accounts.”
What is different about Attorney Merchant Accounts & Trusts?
Generally, funds captured via a credit card also get deposited in the same bank account along with the consideration of the processing fees. For example, let’s say that you charge somebody $100 for services rendered. What gets deposited into your bank account would be the $100 minus the processing fees. In the case of an attorney, credit cards are processed and posted to the general fund in this manner.
The problem is that when dealing with a Trust, you can’t accept a credit card as the funds must go directly to the trust account. Processing fees cannot be deducted from the trust deposit. The finances can’t be intermingled with the attorneys operating account. In fact, you can’t hold it in the operating fund at all, even temporary.
Furthermore, the fees associated with the transaction can’t be applied to the trust either. So this means you couldn’t create a merchant account just for the trust, as those fees should be applied toward the attorneys operating account. So what’s the solution?
When in comes to Attorney Credit Card Processing, payments need to be processed in such a manner where the funds are deposited directly into the trust, but the processing fees are applied to the Attorneys operating fund. These are the kinds of details that other processing partners might miss.
At 1st National, we understand the requirements of Attorney Credit Card Processing and have solutions that are appropriate for those who may need to accept credit cards as it relates to “trust accounts.”
Interested in what 1st National can do for your firm? Give us a call or complete our “quick quote” request. Between our well rounded inventory, Class A Settlement Banks & Processors, and a full suite of Merchant Services, our talented agents are sure to be of value.