22:11
Faizan
If you have concluded, as we believe you should, that your law firm should take credit and debit cards, you still must choose which kind of processing you would need. There are two general types of processing available in the market; we will refer to these as "conventional" or "standard" processing and "flat-rate" processing. This distinction is really historic more than anything else. Variations of standard processing have long been available (although they are constantly improving). Flat-rate processing is more of a recent innovation and was primarily designed for very small or occasional businesses, although it is often marketed (wrongly, in our opinion) to other businesses.
Particularly within the standard processing option there are meaningful distinctions between the providers and plans, but it is not particularly difficult or time-consuming to understand what you need to understand in order to find the right processing from these options. We recommend that law firms use the "conventional" or "standard" processing and would regard using the flat-rate services, in general, as a mistake.
The Flat-Rate Providers
You may be tempted to try PayPal or the Square (or similar services, to which we will refer, collectively as "flat-rate providers") because of their apparently low "commitment" requirements. As you will see below, however, the flat rate providers have significant drawbacks in all significant criteria, and we do not hesitate in recommending other alternatives for most firms.
Some people default to the flat-rate providers because of their apparent simplicity - choosing one can seem so easy and automatic. It is easy to understand the dollar cost of the service you choose, requires no cash outlay for equipment, and requires no commitment to a specific duration. They are, in other words, an easy choice for people who would rather not spend time thinking about the choice.
That is simply not a good way to run a business when the decision can have such long-range consequences. If you are hesitant because of concerns about the price, need for equipment, lengthy commitments or any of the other straw men most credit processing sales people like show you, these concerns are obsolete if you are reasonably careful or appropriately advised.
If you need to obtain credit processing for your firm for the first time, reaching an informed and safe decision should not take you very much time. If you already have some type of merchant processing, chances are you could upgrade your service and save money - also without spending a lot of time.
Why Not to Use Flat-Rate Providers
The flat-rate providers market themselves largely on convenience, speed, and simplicity. They point out that anybody can use a handy device on his or her phone and accept payments in a flash - with only a "low" flat rate fee. The devices are easy to use, convenient, and fast, but the flat-rate fee is not low, and there are significant disadvantages to the flat rate providers that are even more important.
Prestige
Ironically, one disadvantage of the flat rate systems is their "easiness." As is well known, anybody can get them, and many people have - hobbyists, individuals, babysitters... It's great for people who only occasionally need to accept payment electronically. Obviously, there's a price to be paid for this in prestige - truly successful firms do not (in general) use these low common denominator services. It is not appreciably more difficult to set up and use conventional processing services, but there is perceived stability and prestige in using them. It is far more professional to accept electronic payments yourself rather than to use the flat-rate providers.
Particularly within the standard processing option there are meaningful distinctions between the providers and plans, but it is not particularly difficult or time-consuming to understand what you need to understand in order to find the right processing from these options. We recommend that law firms use the "conventional" or "standard" processing and would regard using the flat-rate services, in general, as a mistake.
The Flat-Rate Providers
You may be tempted to try PayPal or the Square (or similar services, to which we will refer, collectively as "flat-rate providers") because of their apparently low "commitment" requirements. As you will see below, however, the flat rate providers have significant drawbacks in all significant criteria, and we do not hesitate in recommending other alternatives for most firms.
Some people default to the flat-rate providers because of their apparent simplicity - choosing one can seem so easy and automatic. It is easy to understand the dollar cost of the service you choose, requires no cash outlay for equipment, and requires no commitment to a specific duration. They are, in other words, an easy choice for people who would rather not spend time thinking about the choice.
That is simply not a good way to run a business when the decision can have such long-range consequences. If you are hesitant because of concerns about the price, need for equipment, lengthy commitments or any of the other straw men most credit processing sales people like show you, these concerns are obsolete if you are reasonably careful or appropriately advised.
If you need to obtain credit processing for your firm for the first time, reaching an informed and safe decision should not take you very much time. If you already have some type of merchant processing, chances are you could upgrade your service and save money - also without spending a lot of time.
Why Not to Use Flat-Rate Providers
The flat-rate providers market themselves largely on convenience, speed, and simplicity. They point out that anybody can use a handy device on his or her phone and accept payments in a flash - with only a "low" flat rate fee. The devices are easy to use, convenient, and fast, but the flat-rate fee is not low, and there are significant disadvantages to the flat rate providers that are even more important.
Prestige
Ironically, one disadvantage of the flat rate systems is their "easiness." As is well known, anybody can get them, and many people have - hobbyists, individuals, babysitters... It's great for people who only occasionally need to accept payment electronically. Obviously, there's a price to be paid for this in prestige - truly successful firms do not (in general) use these low common denominator services. It is not appreciably more difficult to set up and use conventional processing services, but there is perceived stability and prestige in using them. It is far more professional to accept electronic payments yourself rather than to use the flat-rate providers.
Posted in: business
