Managing Payouts

Manage your law firm's cash flow efficiently with Blawby's payout system.

Overview

Blawby's payout system helps law firms manage client payments while staying compliant with trust accounting requirements. With our integrated system, your firm can:

• Receive funds directly into your firm's trust account
• Stay compliant with IOLTA rules by using verified trust account information
• Access scheduled payouts based on payment method and processing time
• Simplify fee handling, as Blawby covers processing fees upfront and bills them on a monthly cycle

Blawby takes care of the operational and compliance complexity behind the scenes, so your firm can focus on practicing law.

Setting Up Payouts

Use the following steps to set up payouts and receive funds with Blawby. This process is designed to ensure IOLTA (trust account) compliance, so you must use your trust account bank information during setup:

1. Navigate to External Payout Accounts. (1 minute) In your Blawby dashboard, navigate to Settings and click on External payout accounts. This is where you will manage your bank account information for payouts.
2. Gather Your Trust Account Bank Information. (2 minutes) Before proceeding, make sure you have the details for your law firm's trust account ready. You will need the account number, routing number, and the name on the account. Using your trust account is required for compliance with legal and financial regulations.
3. Submit Business and Representative Information. (2 minutes) Provide all required business details and upload any necessary documents for verification, such as government-issued identification. Enter your trust account bank information when prompted. Click the Submit details button to begin. It's recommended that the person filling out the information is either the owner of the business or someone with a significant role, such as a director or executive.
4. Verification and Next Steps. (1 minute) In most cases, verification is immediate and your account will be eligible to receive payouts right away. If your account is flagged for further verification, you will see an alert in your dashboard guiding you through the next steps. If you have trouble verifying your account, visit Help & Support for assistance.

How It Works

At the time of each client transaction, Blawby absorbs the processing fees incurred by financial institutions (e.g., credit card networks like American Express or ACH providers). These fees are advanced by Blawby on your behalf and the full transaction amount is credited to your trust account without deductions.

Blawby tracks all advanced processing fees and applicable platform fees in an accrued fee ledger, which is reconciled and billed on a rolling 30-day cycle. This means you will be invoiced every 30 days for the total of these fees.

For more information on current processing and platform fees, visit Pricing.

Payout Schedule

By default, Blawby processes payouts on the following schedule:

• For credit card payments: 2 business days after the payment is received
• For ACH payments: 5 business days after the payment is received

Note: New accounts may have a longer initial payout delay (up to 7–14 days) for the first payout.

Troubleshooting Payouts

If you encounter issues with payouts:

• Check your Blawby Dashboard for any alerts or notifications
• Verify that your bank account information is correct
• Ensure your account is in good standing and all verification steps are complete

Frequently Asked Questions

Do I have to use a trust account for payouts?

Yes. To remain compliant with IOLTA rules, Blawby requires you to use your law firm’s trust account for all payouts.

Are processing fees deducted from client payments?

No. Blawby advances all processing fees up front and bills them to your operating account on a 30-day cycle. Client payments are deposited in full.

How long does it take to receive funds?

Credit card payments are typically paid out in 2 business days, and ACH payments in 5 business days. New accounts may experience a temporary 7–14 day delay for their first payout.

What if my payout account fails verification?

You’ll receive a notification in your dashboard with next steps. Common issues include incorrect routing numbers or missing documents.

Can I update my payout account later?

Yes. You can update your external payout account details at any time from the Blawby dashboard under Settings > External payout accounts.