NorthStar vs LawPay, vs Clio, vs QuickBooks
As a law firm or small business owner, payment processing fees can significantly impact your bottom line.
Understanding the true cost of processing payments is essential to maximizing your retained revenue. This case study compares our wholesale pricing model against three popular payment processors used by law firms: LawPay, Clio, and QuickBooks Online.
Understanding Wholesale Pricing (Interchange Plus)
What is Interchange?
Interchange is the fee set by card networks (Visa, Mastercard, Discover, American Express) that goes directly to the card-issuing bank. This fee varies based on card type, transaction method, and industry but is consistent across all processors.
What is Wholesale/Interchange Plus Pricing?
Wholesale pricing, also known as interchange plus, is a transparent pricing model where you pay the actual interchange rate plus a small, fixed markup. This is the formula:
Your Cost = Interchange Fee + Processor Markup
Why Enterprise Companies Choose Interchange Plus
Large corporations and enterprise-level businesses use interchange plus pricing because it’s the most cost-effective model available. Unlike flat-rate pricing, you’re not overpaying on lower-cost transactions. You see exactly what you’re paying for each transaction, with complete transparency.
NorthStar’s Wholesale Rates
Rates starting at: Interchange + 0.25% + $0.10 per transaction
Card Present Average: 1.89% + $0.10
Card Not Present Average: 2.45% + $0.20
NorthStar vs. LawPay
LawPay Pricing
Visa/Mastercard/Discover: 2.99% + $0.30
American Express: 3.90% + $0.30
Monthly Fee: $19.00
Card Present Comparison (Swipe, Dip, Tap Payments)
| Processing Volume | LawPay Fees | NorthStar Fees | Retained Revenue with NorthStar |
| $10,000 | $329.00 | $190.67 | $138.33 |
| $25,000 | $822.50 | $476.67 | $345.83 |
| $50,000 | $1,645.00 | $953.33 | $691.67 |
| $100,000 | $3,290.00 | $1,906.67 | $1,383.33 |
| $500,000 | $16,450.00 | $9,533.33 | $6,916.67 |
| $1,000,000 | $32,900.00 | $19,066.67 | $13,833.33 |
Card Not Present Comparison (Online, Invoices, Manual Entry)
| Processing Volume | LawPay Fees | NorthStar Fees | Retained Revenue with NorthStar |
| $10,000 | $329.00 | $248.40 | $80.60 |
| $25,000 | $822.50 | $620.90 | $201.60 |
| $50,000 | $1,645.00 | $1,241.60 | $403.40 |
| $100,000 | $3,290.00 | $2,483.40 | $806.60 |
| $500,000 | $16,450.00 | $12,416.50 | $4,033.50 |
| $1,000,000 | $32,900.00 | $24,833.40 | $8,066.60 |
Note: Most attorneys send invoices for payment, making card not present the primary transaction method.
NorthStar vs. Clio
Clio Pricing
Standard Credit Cards: 2.95%
American Express: 3.75%
Requires CLIO Manage Subscription: Starts at $49/month
Card Present Comparison (Swipe, Dip, Tap Payments)
| Processing Volume | Clio Payments Fees | NorthStar Fees | Retained Revenue with NorthStar |
| $10,000 | $295.00 | $190.67 | $104.33 |
| $25,000 | $737.50 | $476.67 | $260.83 |
| $50,000 | $1,475.00 | $953.33 | $521.67 |
| $100,000 | $2,950.00 | $1,906.67 | $1,043.33 |
| $500,000 | $14,750.00 | $9,533.33 | $5,216.67 |
| $1,000,000 | $29,500.00 | $19,066.67 | $10,433.33 |
Card Not Present Comparison (Online, Invoices, Manual Entry)
| Processing Volume | Clio Payments Fees | NorthStar Fees | Retained Revenue with NorthStar |
| $10,000 | $295.00 | $248.40 | $46.60 |
| $25,000 | $737.50 | $620.90 | $116.60 |
| $50,000 | $1,475.00 | $1,241.60 | $233.40 |
| $100,000 | $2,950.00 | $2,483.40 | $466.60 |
| $500,000 | $14,750.00 | $12,416.50 | $2,333.50 |
| $1,000,000 | $29,500.00 | $24,833.40 | $4,666.60 |
Note: Most attorneys send invoices for payment, making card not present the primary transaction method.
NorthStar vs QuickBooks
QuickBooks Pricing
Online Card Payments: 2.99%
In-Person Payments: 2.50%
Keyed-In Payments: 3.50%
ACH Payments: 1%
Card Present Comparison (Swipe, Dip, Tap Payments)
| Processing Volume | QuickBooks Online Fees | NorthStar Fees | Retained Revenue with NorthStar |
| $10,000 | $250.00 | $190.67 | $59.33 |
| $25,000 | $625.00 | $476.67 | $148.33 |
| $50,000 | $1,250.00 | $953.33 | $296.67 |
| $100,000 | $2,500.00 | $1,906.67 | $593.33 |
| $500,000 | $12,500.00 | $9,533.33 | $2,966.67 |
| $1,000,000 | $25,000.00 | $19,066.67 | $5,933.33 |
Card Not Present Comparison (Online, Invoices, Manual Entry)
| Processing Volume | QuickBooks Online Fees | NorthStar Fees | Retained Revenue with NorthStar |
| $10,000 | $299.00 | $248.40 | $50.60 |
| $25,000 | $747.50 | $620.90 | $126.60 |
| $50,000 | $1,495.00 | $1,241.60 | $253.40 |
| $100,000 | $2,990.00 | $2,483.40 | $506.60 |
| $500,000 | $14,950.00 | $12,416.50 | $2,533.50 |
| $1,000,000 | $29,900.00 | $24,833.40 | $5,066.60 |
Note: Most attorneys send invoices for payment, making card not present the primary transaction method.
Dual Pricing / Cash Discount: Eliminate Processing Fees Entirely
While wholesale pricing offers significant savings, there’s an even better option: Dual Pricing (Cash Discount).
What is Dual Pricing?
Dual pricing allows you to display two prices on your invoices:
- Cash/Check/ACH Price – Your standard rate
- Card Price – Includes a 3.5% service fee
When clients choose to pay by card, the 3.5% fee covers 100% of your processing costs, effectively eliminating your payment processing expenses.
Key Benefits
- 100% Cost Coverage: The 3.5% fee fully offsets all processing costs
- Flexible Options: You can split the pricing (e.g., pass 2% to clients, absorb 1.5% yourself)
- Legal in All 50 States: Unlike surcharging, dual pricing doesn’t require card brand registration
- No Compliance Headaches: Surcharging is limited to 3% maximum and requires registration with card brands
Dual Pricing vs. Surcharging
Dual Pricing:
- Legal in all 50 states
- No card brand registration required
- Can pass up to 3.5% to cover all costs
- Clients see two clear pricing options
Surcharging:
- Requires card brand registration
- Limited to 3% maximum
- Doesn’t cover all processing costs
- Additional compliance requirements
With dual pricing, law firms can completely eliminate processing fees while maintaining transparency with clients.
Conclusion
The numbers speak for themselves. Wholesale pricing (interchange plus) offers substantial retained revenue compared to flat-rate processors like LawPay, Clio, and QuickBooks Online.
Key Takeaways:
- Enterprise companies use interchange plus because it’s the most cost-effective model
- Transparency means you see exactly what you’re paying for each transaction
- Significant retained revenue across all processing volumes
- Dual pricing offers an opportunity to eliminate processing fees entirely
At $100,000 in annual card not present processing:
- vs. LawPay: Retain $806.60 more
- vs. Clio: Retain $466.60 more
- vs. QuickBooks: Retain $506.60 more
At $1,000,000 in annual card not present processing:
- vs. LawPay: Retain $8,066.60 more
- vs. Clio: Retain $4,666.60 more
- vs. QuickBooks: Retain $5,066.60 more
Ready to Start Retaining More Revenue?
Contact us today for a personalized analysis of your payment processing costs. We’ll show you exactly how much you can save by switching to wholesale pricing or implementing a dual pricing model.
For more information, please go to our Law Firms page: www.gonorthstarsolutions.com/lawfirms