Could a lawyer join a credit-card merchant program that referred customers in exchange for a twenty-percent participation fee?

Short answer No. On the stated facts, the opinion found that participation would violate Rule 4-5.4(a)'s ban on nonlawyer fee splitting and Rule 4-7.2(c)'s ban on paying value for a referral.

Bar

MOLEC

Issued

1995

Apply this to your situation

This page answers the general question as of 1995. Ask about yours and see what the current Missouri Rules of Professional Conduct say for your facts, with citations.

How much weight this carries: Under Missouri Supreme Court Rule 5.30, formal opinions are binding; informal opinions are advisory. Source.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official ethics opinion. The original opinion (linked on this page) is the authoritative source for any reliance.

Plain-English summary

A lawyer asked about joining a credit-card program that referred customers to participating merchants. A member merchant paid a twenty-percent fee for participation.

On that information, the opinion said the lawyer's participation as a merchant would violate Rule 4-5.4(a), which prohibits fee splitting with a nonlawyer, and Rule 4-7.2(c), which prohibits giving value in exchange for a referral.

Currency note

This 1995 opinion predates Missouri's 2007 amendments to its Rules of Professional Conduct. An official reference note identifies July 1, 2007 amendments to Rules 4-1.9 and 4-1.10. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context and verify current rules before relying on it.

Common questions

Q: Did the opinion permit the lawyer to join the merchant program?

A: No. Based on the information supplied, it found participation would violate two Missouri rules.

Q: Which restrictions did it identify?

A: Rule 4-5.4(a)'s ban on fee splitting with a nonlawyer and Rule 4-7.2(c)'s ban on giving value for a referral.

Background and rules framework

The opinion applied Missouri Rules 4-5.4(a) and 4-7.2(c) to a credit-card merchant program that charged participating merchants twenty percent and referred customers to them.

Citations and references

Rules of Professional Conduct:

Missouri Rule 4-5.4(a)
Missouri Rule 4-7.2(c)

Source

Landing page: https://mo-legal-ethics.org/informal-opinion/950155/

Original opinion text

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

QUESTION: Attorney asks about participating in a credit card program which refers customers to member merchants. The member merchant pays a fee of twenty percent for participation. ANSWER: Based upon the information provided, Attorney would violate Rules 4–5.4(a) and 4–7.2(c), as a participating merchant in the program. Rule 4–5.4(a) prohibits fee splitting with a non-lawyer and Rule 4–7.2(c) prohibits an attorney from giving anything of value in exchange for a referral.

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