Law Firm Billing Meets the Payments Revolution: The Need for a Cohesive Framework Governing Attorney Conduct

Abstract

The world is in the midst of a payment system revolution. Traditional systems, such as cash and checks, are being replaced by cards and other forms of electronic payment. In fact, we are now experiencing a shift from card to non-card payment systems like PayPal and the infamous virtual currency Bitcoin. In the same way that the rise of credit cards dramatically changed how, when, and where consumers and businesses interact and gave rise to new forms of commerce, the latest phase of this revolution is causing businesses to evolve so that they can satisfy consumer preferences and capture the competitive advantages offered by new payment methods.Historically, the legal industry has been slow to embrace change, and the rapid innovation in payment systems is no exception. In fact, while more than 100 million companies now accept multiple electronic payment methods, the legal industry is still working through the ethical implications that arise when an attorney accepts credit cards. But as the payment system revolution progresses and traditional systems fade, the legal industry will have to confront growing pressure to accept new forms of payment. To that end, this Essay examines and provides solutions to the ethical challenges that new payment systems create for attorneys who want to accept them. Specifically, the Essay examines the ethical implications faced by attorneys that accept credit card, Paypal, and Bitcoin payments. In doing so, two major themes emerge. First, in light of the nearly complete absence of specific ethical guidance on emerging payment technologies like PayPal and Bitcoin, rules and opinions regarding credit card acceptance provide useful guidance for attorneys considering new ways of accepting client payments. Second, attorneys are generally free to enjoy the benefits of these new choices so long as they take time to fully understand the technologies supporting them in order to address any structural limitations that might implicate ethical rules. These themes are utilized to provide recommendations to enable the legal profession to fully embrace the electronic payment system revolution.