What Changed This Month for Law Firms: The FTC Targeted Deceptive Payment Processors, So It’s Time to Audit Your Fees

It has been a busy start to November. On November 2, 2026, the Federal Trade Commission and the Washington Attorney General announced action against a payment processor over deceptive cost claims and hard to cancel contracts. A few days earlier, the FTC and a coalition of states moved against a large restaurant tech company for hidden fees. Different industries, same theme. Regulators are turning up the heat on junk fees and misleading terms in payments. If your firm takes cards, this is your sign to look closely at your agreement and statement this week.

1) What changed this month

On November 2, the FTC and Washington state said a payment processor and its affiliate will pay $600,000 to resolve allegations that they misled small businesses about cost savings, buried early termination fees, and made cancellation difficult. The proposed order also includes a larger judgment that is suspended based on ability to pay, and it restricts a long list of misleading practices going forward. A few days earlier, on October 29, the FTC and several state and local enforcers sued a well known restaurant technology company, alleging it slipped a 99 cent fee into online orders and made subscriptions hard to cancel. Different matters, same message. Cost transparency and fair terms are not optional anymore.

For law firms, this lands at a practical moment. You are closing out the year, planning 2027 budgets, and tightening operations. Payments is one of the cleanest places to capture savings fast without cutting service. This month’s enforcement wave gives you both urgency and a roadmap.

2) How this affects law firms

Most firms do not think about merchant services until something breaks. Yet the fine print often drives thousands of dollars a year in avoidable expense. Common problem spots include early termination penalties, equipment leases that auto renew, and layers of mystery line items. Regulators are calling out those exact practices. If your agreement or monthly statement looks like what the FTC described, you have leverage and you have options.

There is also a client side effect. Clients are more price sensitive and they notice fees. Surprise add ons at checkout, strange taxes and fees lines, or inconsistent surcharges can strain trust. In regulated practices like family law, criminal defense, and PI advances, clear and simple payment terms matter. Even when state bar rules allow passing through card costs, clients still expect clarity. The safer path is to keep payment pricing straightforward and well disclosed.

3) A quick, lawyer friendly audit you can run this week

Block 30 minutes with your office manager or bookkeeper. Pull the last two months of merchant statements and your processing agreement. Then look for these red flags:

• Early termination or liquidated damages: Note the amount and the term. Watch for auto renewal.
• Equipment leases: If you are leasing a terminal, check the monthly payment, the remaining term, and whether the lease outlives your processing contract.
• Non qualified, downgrade, or non standard fees: These often mask higher markups. If you see them frequently, your effective rate is probably higher than you think.
• PCI non compliance or monthly compliance fees: These can usually be eliminated with the right setup and support.
• Batch fees, statement fees, monthly minimums, regulatory cost recovery fees: Each one is small, together they add up.
• Support and cancellation experience: If it takes multiple emails and calls to make a simple change, that is a cost too.

Add it all up into an effective rate, which is total fees divided by total processed volume. If you are not sure, The Merchant Way will calculate it for you as a free rate analysis.

4) The pricing models that work for firms

Two models fit most law offices:

• Interchange plus pricing: You pay the real card network cost, plus a small, transparent markup. It is predictable and fair, and it helps you see where every dollar goes.
• Cash discount, often called zero fee: You post a standard price and offer an instant discount for cash or debit. This can offset card costs, but it must be implemented carefully. Bar rules and state regulations vary, so get clarity for your jurisdiction and communicate clearly on invoices and at the point of payment.

With either model, the goal is the same. Fewer line items, no junk fees, and the flexibility to change as your firm’s mix of practice areas and payment channels evolves.

5) Efficiency is the story behind the story

Alongside enforcement, the other headline this month is how fast firms are modernizing workflows. Clio’s 2026 Legal Trends coverage reports that 85 percent of legal professionals now say their firm is using AI in some way. That tells you something about expectations inside firms and at the client level. The same push for faster, smarter work should apply to how you take payments. Offer payment links on engagement letters, use saved cards on file with permission for recurring invoices, and add text to pay for faster collections. A clear process reduces receivables and the temptation to bolt on risky fees later.

It also helps with year end cash flow. Many firms see a December push to finalize matters or get retainers in place for January. Fewer billing surprises and a clean payments experience can shorten time to pay and cut write offs.

6) What to change now, step by step

• Map your acceptance points: Office, phone, web, invoice, and trust deposits. Each has different cost drivers. Make sure your setup routes the right transactions at the right cost.
• Standardize disclosures: If you use a cash discount, post it on invoices and intake documents. If you use interchange plus, explain that your firm uses transparent pricing and does not add mystery fees.
• Clean up old hardware and leases: Many firms pay for terminals they no longer need. Modern terminals are inexpensive and sometimes optional if you mostly invoice or use payment links.
• Assign one owner for payments: Treat payments like a mini practice area. One person should own reconciliation, chargeback response, PCI, and vendor management.
• Schedule a rate review: Put it on the calendar twice a year. Card brand costs change, your mix changes, and your plan should adjust too.

7) How The Merchant Way helps

This is exactly the kind of cleanup we do for firms every day. Most processors bury junk fees and hidden fees in statements. The Merchant Way removes them with transparent pricing and plain language. You can choose interchange plus pricing or a cash discount program to target zero net processing cost. You can switch plans later as your practice changes, so you get real flexibility without a new contract dance.

Agreements are month to month with no early termination fees. You get a dedicated account manager and responsive technology support that is better than the big processors. We start with a free rate analysis, then we show you the dollars you can save and the exact steps to implement. If enforcement headlines made you uneasy this month, that is healthy. Let’s use that energy to make your payment stack clean, compliant, and client friendly before the holidays.

8) The bottom line for November

Regulators are focused on payment transparency right now. That is good for honest firms and good for your clients. Take a fresh look at your statements, move to a pricing model that fits a law practice, and simplify your client payment experience. You will lower costs, reduce friction, and start 2027 on stronger footing. If you want a second set of eyes, The Merchant Way is ready to help.