[WSBAPT] Off Topic: Accepting Credit Card Payments

Fri Jun 18 13:57:05 PDT 2021

Notice the 2012 date of the opinion:

2214<https://ao.wsba.org/print.aspx?ID=1660>
2012
RPC 1.5(a), 1.5(b)
Credit Card Transaction Fees Charged to Client
This opinion addresses whether credit card transaction fees may be charged to the client.

Question: A lawyer accepts payments from a client by credit card. The client pays the lawyer with a credit card and the credit card company then charges the lawyer a fee for the transaction. May the lawyer charge the client an additional amount to cover the fee charged the lawyer for the credit card transaction?

Answer: It is not prohibited under the Rules of Professional Conduct, PROVIDED that the lawyer notifies the client in advance of such charges and does not charge the client any more than a fee that reasonably reflects the actual cost incurred by the lawyer for the credit card transaction. HOWEVER, the attorney should consult the merchant services agreement from their credit card processor, as it is typically prohibited to charge these fees back to the customer.

Analysis: Lawyers may charge clients reasonable amounts for expenses. RPC 1.5(a). The lawyer should communicate with the client in writing the basis for expenses for which the client will be responsible. RPC 1.5(b). Comment 1 to RPC 1.5 further explains that a lawyer may charge a client "for the cost of services performed in-house, such as copying, or for other expenses incurred in-house, such as telephone charges, either by charging a reasonable amount to which the client has agreed in advance or by charging an amount that reasonably reflects the cost incurred by the lawyer."

At the time of issuance, of this opinion, the operating agreements used by most of the major credit card companies prohibit charging customers extra fees to cover the cost of such credit card transaction fees and attempting to do so may place a lawyer in violation of obligations imposed by the credit card provider agreements. [note 1]. Before attempting to charge a client any fee to recover the costs imposed by credit card providers, the lawyer should carefully consult all applicable agreements and the contracting bank.

[n.1] Despite prohibiting transaction fees to the consumer, many credit card agreements permit the use of discounts for cash payments. A lawyer should carefully review the applicable credit card agreements and contact the contracting bank to assess what is permitted under the specific agreement at issue.

Roger Hawkes, WSBA # 5173
Shoreline Office: 19944 Ballinger Way NE
                                Shoreline, WA 98155
Sultan Office:        423 Main
                                 Sultan, WA 98294

Phone: 206 367 5000; fax: 206 367 4005
Email: roger at law-hawks.com<mailto:roger at law-hawks.com>
Web site: www.hawkeslawfirm.com<http://www.hawkeslawfirm.com/>
[cid:image001.jpg at 01D76449.C66BC220]

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Stacey Romberg
Sent: Friday, June 18, 2021 1:12 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Off Topic: Accepting Credit Card Payments

I completely concur with Heather re: Law Pay. And please see WSBA Advisory Opinion 2214 re: whether credit card transaction fees may be charged to a client.

[cid:image002.png at 01D76449.C66BC220]
Stacey L. Romberg, Attorney at Law
10115 Greenwood Avenue N., PMB #275
Seattle, Washington 98133
Telephone: 206-784-5305
Facsimile: 206-789-8103
E-mail: info at staceyromberg.com<mailto:info at staceyromberg.com>
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Practice concentrated on estate planning, probate and business law.
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Heather de Vrieze
Sent: Friday, June 18, 2021 12:52 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Off Topic: Accepting Credit Card Payments

Not sure about passing the processing cost on to clients, but we accept credit cards and find LawPay to be the best platform around. They aren't the cheapest, but I have found their customer service to be amazing, their ability to receive payments into our operating account or IOLTA (taking all fees out of the operating account), without needing two separate customer accounts.

Heather

Heather S. de Vrieze
Attorney-at-Law
[cid:image006.jpg at 01D76449.C66BC220]
3909 California Avenue SW
Seattle, WA 98116-3705
(206)938-5500
heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>
www.westseattlelaw.com<http://www.westseattlelaw.com/>
Click here to connect with de Vrieze | Carney on Facebook:   [FB Logo] <https://www.facebook.com/DeVriezeCarney>

For the latest information regarding firm operations and precautions in light of the Coronavirus please visit our firm's website: www.WestSeattleLaw.com<http://www.westseattlelaw.com/>.

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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Elizabeth Bateman
Sent: Friday, June 18, 2021 12:30 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Off Topic: Accepting Credit Card Payments

Those of you with small firms, do you accept payment by credit card?  Are you willing to share your process?  Is there a platform you recommend?  Has anyone done the research into whether it's legal/ethical to pass a processing fee on to the client who chooses to pay with a card?

Thanks for your insight!

Elizabeth G. Bateman
Associate Attorney
Admitted in Washington and Minnesota
Bateman Law Group, PLLC
999 Third Ave., Suite 2525
Seattle, WA 98104
Office: (206) 224-0900
Cell: (425) 444-9946
Website: www.batemanlawgroup.com<http://www.batemanlawgroup.com/>

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