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Digital Payments, Retainers, and Trust Accounts: Compliant Client Intake in a Tech-Driven Practice
Today’s clients expect to pay you like they pay for everything else—online, instantly, and with ease. But as legal professionals, we’re bound by a different set of rules. Trust account compliance doesn’t stop at your bank—it starts the moment you onboard a client.
Whether you’re using platforms like LawPay, ClioPay, or QuickBooks Payments, understanding how digital tools interact with IOLTA requirements is non-negotiable. Because one bad deposit, one accidental commingling, or one misunderstood integration can put your bar license at risk.
Let’s walk through what you must know to build a compliant, tech-forward intake system.
Why Your Payment System Needs to Match Your Compliance System
Digital payment tools are a game-changer—but only if you configure them correctly.
Most violations around retainers and online payments come down to this:
Funds were deposited directly into the operating account instead of trust. Earned and unearned fees weren’t clearly tracked. Merchant fees were deducted from client funds.All three are ethics violations in most jurisdictions.
Here’s Where Law Firms Get It Wrong
Your intake might feel smooth to the client—but if your payment flow deposits all funds into your business account, you’ve already violated IOLTA rules before the case even starts.
And if your platform withdraws merchant processing fees from a trust account? You’ve just commingled funds and misused client money—even if unintentionally.
What IOLTA-Compliant Payment Intake Looks Like
Here’s how to set your tech stack up the right way:
Use an IOLTA-Approved PlatformStick with providers like LawPay or ClioPay, which are built specifically to handle trust and operating account separation.
Separate Earned vs. Unearned FundsRetainers (advance payments) must go into a trust account. Only earned fees can be transferred to operating.
Never Deduct Processing Fees from TrustPlatforms like LawPay ensure processing fees are charged to your operating account, not deducted from client funds in trust.
Set Up Dual Account RoutingEnsure your intake form or invoice clearly routes:
- Retainers to your trust account
- Flat fees or billed work (already earned) to your operating account
Create Rules for What Gets Deposited WhereExample:
- Initial retainer = trust account
- Monthly subscription = trust (unless clearly earned at payment)
- Past-due invoice = operating
Smart Intake Isn’t Just About Forms—It’s About Financial Infrastructure
Client onboarding isn’t just about welcome emails and intake forms. It’s where your compliance begins.
If your admin team, intake software, or payment link is misrouted, you’re on the hook—not them. Your trust account obligations start the moment a dollar enters your control.
And yes, the bar will hold you accountable, not your payment processor.
Final Thoughts: Automate with Intention
Modern firms are embracing automation, online payments, and client portals. That’s a good thing.
But convenience means nothing if it compromises compliance. It’s time to audit your intake system and make sure every retainer, fee, and deposit hits the right account with the right documentation.
Let’s Fix This Before the Bar Comes Knocking
At Prestige Accounting and Consulting, we help law firms design compliant, client-friendly intake workflows that integrate with platforms like Clio, LawPay, and PracticePanther.
Set up automated trust/operating routing Audit your current client intake and payment flow Fix trust account commingling risks Train your staff on IOLTA-friendly systems Protect your firm while growing with confidence
Book a Consultation and let’s make sure your tech supports your ethics.
