Changes to Payment Options Coming February 1, 2020

December 12, 2019

Following on the decision in 2018 to remove cheques as a form of payment starting in 2020, the Law Society and ALIA will also be eliminating the option to use credit cards as a form of payment. Starting February 1, 2020, The Law Society and ALIA will no longer accept payment by cheque or credit card. Payments can be made via online banking or electronic funds transfer (EFT).

Helping hold fees flat

The Law Society has continued to hold fees flat over the past three years, despite increases in costs and inflation. However, slowing the increase of fees going forward will require more decisive action. With this in mind, the Audit and Finance Committee, the Benchers and the ALIA Board looked at the escalating costs of credit card transactions.

The cost to administer credit card transactions for 2019 was more than $750,000 – and that cost is borne by every Alberta lawyer, whether they use credit cards or not. This works out to more than $100 per lawyer, combining the ALIA levy and the member fee.

With credit card costs projected to increase by an additional $50,000 in 2020 and an additional 10 per cent per year every year following, the costs would inevitably be borne by Alberta’s lawyers through fee increases.

The manual process to include paper cheques as a form of payment is resource intensive and far outweighs effectiveness. Additionally, as the Law Society moves to an all-digital environment by 2022, continuing the traditional cheque process is no longer viable or justifiable.

Going forward, payment to the Law Society can be made through your online bank (for individual lawyers) or via electronic funds transfer (for firms).

Paying online is easy as 1-2-3

Setting up Online Bill Payment is an easy, one-time process. If you’ve ever paid a bill through your online bank, the process is the same – simply record your member ID and invoice number via the Lawyer Portal, certify that you will complete your payment and submit.

Once you have submitted, pay your invoice amount via your online bank and you’re done.

For support on setting up online payment or EFT, contact your financial institution.

No more automatic password resets

We’re making it easier to use the Lawyer Portal to help you manage your payments.
By removing credit card transactions from our payment options, the Law Society will no longer force-reset your Lawyer Portal password every three months, making it easier for you to log in and manage your account.

After logging in to the Lawyer Portal, view your invoice and record your member ID. Make sure to certify that you have made your payment in the Lawyer Portal and that you complete your payment prior to the relevant deadline to avoid suspension.

For more information, read our FAQs or contact Customer Service at 1.800.661.9003 or membership@lawsociety.ab.ca.

Comments

44 responses to “Changes to Payment Options Coming February 1, 2020”

I have chosen to keep, for obvious security reasons, all my law firm accounts off-line. Is the law society requiring me to put my banking online?

Dennis C. Calvert says:

December 15, 2019 at 8:12 pm

Please be advised that I use neither online banking nor ETF; so I hope you can and will understand why you will not be receiving any payment after February 1, 2020 unless you make other arrangements for payment.

Neither of your means of payment are easy or convenient for me to utilize nor do I feel that they are a secure or trustworthy means of payment.

I do not agree with the decision to remove credit card payments. Members should be at liberty to determine how they wish to manage these large payments.

If I chose to pay in cash in Canadian currency where must the money be delivered?

Colin Brandt says:

December 17, 2019 at 4:02 pm

Brian, if you wish to pay in cash, The Law Society’s offices are located at 700, 333 11th Ave SW, Calgary AB.

I disagree with this decision. Paying by credit card was much easier and simpler. I am not sure why this was a necessary or desirable change at all.

Colin Brandt says:

December 17, 2019 at 4:03 pm

Thank you for your comment; unfortunately, the cost to administer credit card transactions for 2019 was more than $750,000 – and that cost is borne by every Alberta lawyer, whether they use credit cards or not. This works out to more than $100 per lawyer, combining the ALIA levy and the member fee.

With credit card costs projected to increase by an additional $50,000 in 2020 and an additional 10 per cent per year every year following, the costs would inevitably be borne by Alberta’s lawyers through fee increases.

The Law Society Audit and Finance Committee, Board, ALIA Executive Committee and ALIA Board were involved in the decision-making process surrounding this change, and believe it is in the long-term interests of Alberta’s lawyers to practice cost control where possible to ensure that costs are being managed responsibly.

Not sure why you do not accept cheques. It is the most convenient and secure way of paying the fees/costs. Also cheques do not have a direct cost unlike EFT and credit cards. I would like to continue to pay by cheque.

Colin Brandt says:

December 17, 2019 at 4:04 pm

Brendan – while cheques have no direct cost to the user, the manual process used to complete payments by cheque are considerable. The Law Society has been working to take all paper-based processes into a digital format by 2022, and continuing with paper cheques is not an option for logistical or staffing reasons.

I too have chosen to keep my law firm accounts and personal accounts off line for security purposes. Why is the Law Society requiring me to increase my personal risk by forcing me to pay online through EFT? What is wrong with credit cards? The LSA is heading in the wrong direction here.

I am not certain the Law Society has the legal jurisdiction to refuse any form of payment which is accepted as legal tender in Canada be it credit cards or cheques which constitute required payments to remain in good standing.

Colin Brandt says:

December 17, 2019 at 4:12 pm

Katharine, per your jurisdictional question, the Benchers have the authority to choose the forms of payment accepted by the Law Society. Credit cards were introduced as a form of payment by the Law Society in 2015, and while it is convenient, it is extremely expensive, and those costs are ultimately born directly by Alberta’s lawyers.

I believe that the Law Society benchers should reconsider this requirement. Whether or not an individual (including a Member of the Law Society) participates in online banking is a personal decision. Forcing individual Members to participate in online banking in order to be able to pay the membership and insurance levies is a mistake, presumably motivated by “simplicity”, but it has broader implications. Please reconsider this requirement, prior to its planned implementation date, and provide your members with other payment options.

I strongly disagree with this decision.

I think it is another example of the law society being out of touch with it’s membership and only thinking about what’s best for them (and disregarding the interests and needs of the members).

My preference has always been to pay by credit card . it’s I disagree completely with your decision to remove this option. It’s by far the easier and most preferable choice. I believe this decision. should be reconsidered.

Cheques are legal tender in Canada as is cash. For a variety of reasons including, but not limited to, security concerns, our firm has chosen not to have online banking for payments. For credit cards, there is presumably an % interest payment for the LSA/ALIA and a desire for the LSA/ALIA to end payment by credit however that is not the case for cheques. I see no reason why one would require firms to change their banking practices, particularly where the firm has an excellent history of payment and no instances of NSF cheques. If an individual/firm has provided the LSA/ALIA with an NSF cheque, the LSA/ALIA can charge a fee and disallow future payments by cheque.

Colin Brandt says:

December 17, 2019 at 4:07 pm

Wendy, you are absolutely correct as to why the Benchers chose to end credit card as a form of payment, but cheques have their own complications. While cheques have no direct cost to the user, the manual process used to complete payments by cheque are considerable. The Law Society has been working to take all paper-based processes into a digital format by 2022, and continuing with paper cheques is not an option for logistical or staffing reasons.

I’m joining the chorus of disagreement here. For in-house counsel (especially larger teams of in-house counsel), their employers have their own security concerns that prevent the use of online banking of electronic funds transfers.

I do not agree with this forced on-line payment option. I do not use on-line banking for anything and do not intend to begin to do so. This is a bad decision and should be revoked.

How is this supposed to work for in house lawyers, whose professional fees are paid by their employer via corporate credit card?

Colin Brandt says:

December 17, 2019 at 3:00 pm

Ann, For in-house lawyers, the Law Society and ALIA recommends that lawyers speak to their accounting departments to ensure that they are set up to complete EFTs or via their online banking.

I too strongly disagree with this decision. I would respectfully request that you review this decision. I do not use on line banking at all as it relates to my practice and have been using my current practice of paying by cheque for more than 30 years. Its difficult to teach an old dog new tricks.

This is asinine. This directive is completely contradictory to all of the Law Society’s past warnings and reminders to members of the dangers of internet fraud, ransomware viruses, email phishing and all of the other malevolent threats posed by the internet. Using credit cards affords some measure of security and insurance against fraudulent use and theft.

I would also question the justification for this. If its due to transaction costs, then why not just bump the fees to cover them. If its motivated by the desire to minimize the need for password revisions, too bad. Maybe all of us should get in the habit of doing that for sensitive online accounts. And does the Law Society have so little trust and faith in its members that they now refuse payment by cheque?

This policy seems to have been created in an absolute vacuum. I would press the LSA to provide to all of us the reasoning and justification for such a wrong-headed policy change.

Colin Brandt says:

December 16, 2019 at 10:30 pm

Kevin, this decision was made by the Benchers following extensive research and comparison with other Law Societies and nonprofits across Canada. Ultimately, the costs associated with using credit cards as a form of payment are too significant to ignore.

The cost to administer credit card transactions for 2019 was more than $750,000 – and that cost is borne by every Alberta lawyer, whether they use credit cards or not. This works out to more than $100 per lawyer, combining the ALIA levy and the member fee. With credit card costs projected to increase by an additional $50,000 in 2020 and an additional 10 per cent per year every year following, the costs would inevitably be borne by Alberta’s lawyers through fee increases.

The Merchant Banking agreements available with credit card companies specifically do not allow the Law Society to charge a convenience fee to pay for credit card transactions. As a result, the only option for the Law Society and ALIA is to spread those costs across every lawyer in Alberta. With those costs rising 10 per cent per year, this is untenable.
1. Greg Worobec says:
  
  December 24, 2019 at 12:25 am
  
  Perhaps the Law Society should have considered asking it’s membership whether they were prepared to accept the additional cost rather than purporting to speak for us without asking. ALIA spreads its costs over every lawyer in Alberta, and as such since I am a criminal defence lawyer and owner of a firm who pays the insurance for 5 lawyers practicing criminal law (where there is virtually no risk associated with the practice) I pay an inordinate amount more based on risk than solicitors involved in large-scale commercial transactions – yet the Law Society has not chosen to jump to the aid of myself or my colleagues in the defence bar – clearly a bad decision which should be revoked immediately.
2. Colin Brandt says:
  
  December 24, 2019 at 2:59 pm
  
  Greg, this change is being made because the additional costs associated with processing credit card transactions are borne by every lawyer in Alberta as part of their fees, and that amount is climbing by ten per cent year-over-year. Your elected Bencher representatives made this decision in part to help keep fees and levies lower.

I agree 100% with Ms. Checkland. To say that one may not tender currency of the realm to exercise one’s profession is not only inappropriate, it is offensive. There are multiple reasons why such restrictions should not be imposed, which frankly and respectfully should have been obvious. This decision should be rescinded immediately.

I also strongly disagree with this decision.

What is the basis for the decision? To reduce costs to the Society/ALIA through the elimination of merchant fees for credit card transactions? Is there even a cost associated with cashing a cheque? Is it an attempt to simplify the reconciliation process for admin staff (ie. single source of payments – online)? Is it really that much more of an effort to reconcile from multiple payments sources?

In a normal business environment, these would be legitimate business improvement, cost cutting initiatives. But the Society/ALIA aren’t true businesses and their function is different (ie. the sole purpose isn’t to make a profit – it’s to regulate and provide services to Alberta lawyers).

Annual member and insurance fees are so expensive, especially for those practicing in solo and small firms. Some (most?) don’t have a pile of cash sitting around to make lump sum payments and rely on the convenience of credit card payments. Not only do credit card payments allow for the convenience of payments anytime or anywhere, it frees up operating cash flow.

This decision will unlikely affect those lawyers in the big/top tier firms on the big end of town (whose fees are nearly always paid by their firms in any event). This cohort of lawyers aren’t the majority of Alberta lawyers.

I would strongly encourage the Benchers to reconsider this decision.

I am strongly against the change. I too have stayed away from online banking to avoid chances of someone hacking my bank account. At lease allow us to pay by bank draft. I don’t want to go to online banking to pay just one invoice. You are putting my accounts at risk for your convenience.

Perhaps you could explain how much the Law Society will save by not paying the transaction percentage on credit card payments and then consider passing this saving on to its members. If the savings are not significant, then perhaps credit card payments should remain. Why were members not canvassed with a proposed change and asked for feedback knowing the costs involved?

Colin Brandt says:

December 16, 2019 at 10:27 pm

Thank you for your comment, Alex. The cost to administer credit card transactions for 2019 was more than $750,000 – and that cost is borne by every Alberta lawyer, whether they use credit cards or not. This works out to more than $100 per lawyer, combining the ALIA levy and the member fee.

The Merchant Banking agreements available with credit card companies specifically do not allow the Law Society to charge a convenience fee to pay for credit card transactions. As a result, the only option for the Law Society and ALIA is to spread those costs across every lawyer in Alberta. With those costs rising 10 per cent per year, this is untenable.

This looks like the modern alternative to a certified cheque. The requirement is to “certify” before the payment is made using EFT. The Law Society is bending over to assist ALIA in bill collections. I think the Law Society is forgetting whose interests it represents.

I also disagree with this decision. It requires many of us to change our banking practices, and reduces rather than enhances convenience for members. I do not see any cogent reason to make this change.

There is no justifiable reason for not accepting cheques. There are minimal fees associated with this form of payment and it is secure. I am opposed to these changes.

I strongly disagree with this decision. Decreasing the flexibility of form of payment is not for the greater good. And I agree with the comment about managing these LARGE payments.

I too disagree with removing credit card payments. Sometimes cash flow for certain practitioners is not great and a credit card is a way to tide over these payments. What gives the Law Society the right to remove this form of payment. I am sure that most of the smaller firms would prefer to pay by card as its convenient and cost effective.

Colin Brandt says:

December 16, 2019 at 10:24 pm

Douglas, this decision was made by the Benchers following extensive research and comparison to other Law Societies across Canada. Credit Cards have only been offered as a form of payment at the Law Society since 2015, and while they are convenient, the fees charged by credit card companies are unsustainable, with a projected cost of $800,000 to process credit card transactions for 2020 alone.

While credit cards will no longer be an accepted form of payment, that doesn’t preclude members using credit if they wish to facilitate their payment. If members wish to use their credit card to manage these payments, it is possible to take a cash advance against most credit cards to complete the transaction. If you have any questions about this process, please contact your financial institution.

I am unsure where this decision came from and do not recall any request for input. This change is most certainly not for my convenience and should be reconsidered immediately. In a small firm setting, management of cash flow is not always easy and use of credit cards or other credit facilities is sometimes necessary. I would hope that they listen to their membership and would encourage colleagues to contact benchers and let them know that this is an issue that needs to be addressed.

Colin Brandt says:

December 16, 2019 at 10:21 pm

Peter, this decision was made by the Benchers following extensive research and comparison to other Law Societies across Canada. While credit cards will no longer be an accepted form of payment, that doesn’t preclude members using credit if they wish to facilitate their payment. If members wish to use their credit card to manage these payments, it is possible to take a cash advance against most credit cards to complete the transaction. If you have any questions about this process, please contact your financial institution.

I also disagree with this policy seemingly designed to make the practice of law just a little more difficult for members.

I also disagree with this decision, particularly as it applies to cheques. Please reconsider!

this is ridiculous – can you refuse legal tender? what good are our trust accounts if they cannot be used to pay our fees? you could save money by not using expensive accounting firms to audit sole practitioners who have done nothing wrong.

It is disappointing that our members were not consulted first before this arbitrary decision to end credit card payment was made. The annual fixed fees and expenses that lawyers must pay each year to “hang up a shingle” are substantial. Getting some air miles on those cards at least helped with travel costs for continuing ed seminars (another onerous expense).
It may be that lawyers who want to pay by credit would have agreed to an added surcharge for credit card payment. But we weren’t asked. It may be that a better deal could have been negotiated with an alternate credit card merchant and/or financial institution. We have heard nothing about how many of these were contacted for better and more competitive rates.
I am hoping that the LSA will reconsider this recent decision to better serve its members.

Hello. Two questions:

1. Am I correct that the fee due on March 15 will be $2,730.00 including GST for full-time?
2. Is the “Member ID” (which I understand to be the account number for the purpose of online banking payment) what was once called the “Roll Number” i.e. the numbers on the upper-right-hand corner of the membership card?

I am trying to set this up early to avoid any last-minute panic.

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