If you take payments via credit card, how do you handle merchant fees?

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Used to eat them but since 2022 we changed that policy and tacked them on the invoices. I’m not going to take less on a net basis for someone else’s perceived convenience.

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Clients can pay their monthly invoices over the phone by credit card and we charge a convenience fee to do so.

Draw a firm line and take only checks (or ACHs from institutional clients). I’m sure there are practice areas - like crim and family - where you need to take credit cards, but mine isn’t one of them (RE)

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I put a mention in my retainer agreement that I accept credit card payments, but the processing fee will be added to the balance due, and I itemize it on the bill. So far, so good!

The only caveat is a disputed bill- the other poster was right when he said the credit card company always sides with the client.

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Check your local ethics rules. Some states permit you to pass it along to the client so long as the client signs a retainer agreement stating that credit card processing fees are separate. Other states prohibit it.

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OP simply state that credit card fees range between ___% and ___% of the transaction and that they’re responsible for the dress. Go on LawPay’s website and look at their free sample retainer/engagement agreements that disclose credit card fees.

I eat them at a flat 2.95% rate and have considered it a cost of doing business. But now I’m wondering whether I should start passing them on.

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As am I...

It would depend on your retainer's agreement witha client. Sometimes, if it's unclear I no longer charge them the merchant fees but luckily most of my clients are amenable to pass it along to them.

My firm charges a 2% processing fee for card payments. If the client doesn’t want to pay it they are welcome to bring or send in a check.

That fee and the returned check fee are both in our retainer agreement.

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