The importance of IOLTA when accepting payments through a gateway or merchant services account is essential for lawyers.
First things first, I am not an attorney, and this is not legal advice. That being said, Team Merchant works with many law firms and we are experts when it comes to best practices in the payments industry. Finding an affordable partner who is familiar with Interest On Lawyers Trust Accounts (IOLTA) regulations can be difficult. Many processors and gateways who cater specifically to the legal services industry vastly overcharge for the services they are providing. Team Merchant understands how vitally important it is for law firms to handle fiduciary funds properly. Keeping operating accounts and IOLTA accounts separate saves time and headaches down the road. Incorrect architecture of IOLTA accounts can lead to a nightmare of forensic accounting, potential liabilities, and discipline for incorrect handling of funds.
IOLTA Compliant Card and ACH Payments can be Easy!
Accepting payments is not a reason that anyone goes into practicing law. It can be a hassle and the payments industry is intentionally confusing to make it difficult to understand what you are paying and why. In the legal industry, time is the most valuable commodity and eliminating wasted hours is essential. There are many solutions branded for the legal industry specifically to create the illusion that they have solved some grand mystery. It sounds great, but most traditional credit card, check, ACH, invoicing and payment processing services are able to process these transactions and earmark them for different accounts, which is the crux of IOLTA regulations.
Firms process payments in a myriad of ways. It could be in person with terminals, over the phone via a virtual terminal, an emailed invoice or any combination of many different solutions. It is a must that these systems work together and allow payments, deposits, fees and chargebacks to be routed to the correct account when processing a transaction. With so many moving parts, a payments company that works to find the perfect solution for a firm’s unique needs is invaluable.
Maintaining Two Accounts – IOLTA and Operating
We understand that people do not want to operate two entirely different payments ecosystems, however fees and chargebacks can never be withdrawn from an IOLTA account. Many antiquated systems make this process cumbersome and time consuming. There is no longer a need to remember multiple log ins or juggle random merchant ID numbers. The same parent account will house the two merchant accounts and allow you to choose which account you are processing payments through at the time of payment. Further, it is important to have robust reporting that allows you to switch seamlessly between the two accounts, see transactions in real time, securely store cards for future or recurring transactions and easily identify and correct any errors.
Team Merchant works with law firms of all sizes. We have been able to help substantially reduce processing fees, increase efficiencies and maximize security by completely removing firms from PCI scope. We are passionate about helping attorneys and firms eliminate wasted hours and keep more of their own money!
