Can a law firm accept major credit cards to pay for legal services?

Plain-English summary

The committee considered whether a law firm could accept major credit cards as a method of payment for legal services. It answered yes, citing ABA Formal Opinion 338 (1974), and set out four conditions for a lawyer to participate as a payee in a credit card plan.

The conditions were that all publicity and advertising relating to the plan be approved in writing by the Kentucky Bar Association; that no publication of any kind be made of the names of lawyers or firms who subscribed to the plan; that the lawyer do nothing to promote use of the plan except a discreet indication in his office that payment through the plan is acceptable; and that the lawyer make no agreement that obliges or may oblige him to violate any rule of legal ethics, the committee giving as examples that he could not agree to supply credit information concerning his clients and could not make an unqualified agreement to permit inspection of his books and records.

Currency note

This opinion was issued in 1977 under Kentucky's former Code of Professional Responsibility (in effect 1971 to 1990), before the Kentucky Bar Association's 1990 adoption of the Rules of Professional Conduct (SCR 3.130) and the substantial 2009 revisions to those rules, and before later changes to lawyer-advertising regulation. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against the current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Can a law firm take credit card payments?

A: Yes. The committee concluded a lawyer may participate as a payee in a credit card plan, following ABA Formal Opinion 338 (1974), subject to four conditions.

Q: What confidentiality limit did the committee impose?

A: The lawyer could not agree to supply credit information about his clients, and could not make an unqualified agreement to permit inspection of his books and records.

Q: Could the lawyer advertise that he accepts the card?

A: Only minimally. The committee allowed a discreet indication in the office that the plan is accepted, with any related publicity requiring written bar approval, and barred publishing the names of subscribing lawyers.

Citations and references

Other opinions cited:

• ABA Formal Opinion 338 (1974)

Rules of Professional Conduct:

• Modern analog Model Rule 1.5 (fees)

See also

• KBA Ethics Op. E-166: Staff Bonuses From Firm Income

Source

• Landing page: https://kybar.org/For-Members/Rules-Ethics-Information/Ethics-Opinions
• Original PDF: https://kybar.org/Portals/0/Admin/Ethics%20Opinions/KBA_E-172.pdf

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

KENTUCKY BAR ASSOCIATION
Ethics Opinion KBA E-172
Issued: November 1977

This opinion was decided under the Code of Professional Responsibility, which was in effect from 1971 to 1990. Lawyers should consult the current version of the Rules of Professional Conduct and Comments, SCR 3.130 (available at http://www.kybar.org), before relying on this opinion.

Question:

May a law firm accept major credit cards as a method of payment for legal services performed by that firm?

Answer:

Yes.

Reference:

ABA Formal Opinion 338 (1974)

OPINION

A lawyer may participate as a payee in a credit card plan provided:
(1) All publicity and advertising relating to the plan has been approved in writing by the Kentucky Bar Association;
(2) No publication of any kind is made of the names of lawyers or law firms who subscribed to the plan;
(3) The lawyer does nothing to promote use of the plan except a discrete indication in his office that payment through the plan is acceptable; and
(4) The lawyer makes no agreement that obliges him or may oblige him to violate any rule of legal ethics. E.g:, he could not agree to supply credit information concerning his clients and he could not make an unqualified agreement to permit inspection of his books and records.

Note to Reader
This ethics opinion has been formally adopted by the Board of Governors of the Kentucky Bar Association under the provisions of Kentucky Supreme Court Rule 3.530 (or its predecessor rule). The Rule provides that formal opinions are advisory only.