Credit Card Processing

Credit card processing means quicker payments with less effort

[Anthony Gin is Director, Client Partner Development for Payment Processing, Inc. In 2006, PPI processed $4 billion in transactions for more than 17,000 merchants.]

It's no surprise that much of your firm's success is driven by quality client service, optimizing billable hours, and being paid quickly. Now there's a way to enhance all three: accepting credit and debit cards as payment for your services.

Surveys have shown that many small-to-midsize firms are eager to embrace this capability as soon as it's readily - and reliably - available. 40 out of 90 firms surveyed predicted that 25% of their clients would be eager to pay using a credit card, for an average monthly receivables rate of up to $10,000 -- quite a substantial amount. (Other respondents cited that they are paid out of settlements, or their categories of clients never use credit cards as a means of payment.)

The legal community is ready to eliminate some of the following problems, all of which are intrinsic to its businesses:

1. Payment problems can clog a businesses' profitability and impact client relationships. Regardless of past positive history, firms may become reluctant to take on more work from that client again. Everyone loses.

2. Streamlining a firm's internal business processes is also vital. Necessary functions such as accounts payable tasks are time consuming and aren't billable. The cost is tangible and painful, affecting the bottom line.

3. And even after the invoices are sent, delays in payment can grind vital cash flow to a halt. While waiting for delayed payments the firm is essentially playing the role of credit provider for their clients. Wouldn't it be better have the client's own credit fund their payables? When the payment is finally received the checks might not clear, not to mention the inconvenience of frequent resubmittals to the bank.

4. Finally, and worst, there's the dreaded yearly January meeting with accountants when firms are forced to write off their aged receivables. How appealing to cancel that appointment due to an empty list.

Processing payments paid by credit card helps to remedy these situations and the difference is immediately noticeable. It's important, however, to partner with a payment processing company that provides an integrated solution and high-quality support.

A firm's priorities are to grow the business while keeping clients happy. And most firms don't have the expertise - or desire - to handle credit card processing questions or issues. That's why the processing solution needs to simple for you to order, configure, install and test - with help from the processor along the way -- so it's up and running quickly.

T oll-free, unlimited 24/7/365 telephone support for all technical and administrative processing issues is also vital. Rather than bouncing between vendors - the bank, the software company, or the hardware provider - the firm can concentrate on the business's priorities and leave the rest to the payment processing company.

Surveys show that within the small minority of firms that are already accepting credit card payments, some believe that changing processors will cost more than what they're using now. The truth is that a truly integrated solution, vs. the common and current piecemeal ones, can actually save firms money over the course of the year. With all the services under one roof, an integrated solution can pass the savings - and convenience - on to you.

But will a firm's clients use this new credit/debit card payment option? They certainly will. It's no surprise that consumers are accustomed to, and often prefer, to use credit cards to pay for large purchases. The convenience is undeniable, frequent flyer relationships are enhanced, and a client's willingness to "put it on a card" to defer payment is appealing when checking account funds are low. Plus, the billing firm gets the commitment right away and receives the actual funds within 24-48 hours.

It's a new and ever-improving business environment. Assess your business needs and consider credit card processing as a means to improve your bottom line.