When it comes to legal payments, securely storing credit card information protects sensitive client data while complying with strict industry security standards. For law firms, it’s both a compliance requirement and a critical part of maintaining client trust.
While the rules around credit card storage can feel complex, understanding the basics helps protect your clients, reduce risk, and safeguard your firm’s reputation.
Yes, merchants are allowed to store customer credit card information. However, it’s imperative to understand which data you’re legally entitled to hold and which you cannot store under PCI compliance.
For law firms, storing client payment information securely is essential to maintaining the trust that defines the attorney-client relationship. There are strict guidelines regulating how and where this information can be stored, which we’ll cover in the following sections.
Any business that accepts, stores, or transmits credit card information—including law firms—must comply with the Payment Card Industry Data Security Standard (PCI DSS). These security standards outline how businesses must protect sensitive cardholder data and reduce the risk of fraud and data breaches.
PCI DSS version 4.0, now fully in effect as of 2025, introduces enhanced requirements around multi-factor authentication (MFA), phishing protection, and continuous risk analysis. Law firms should confirm that their payment providers and internal processes align with PCI DSS v4.0 standards to remain compliant and protect client information.
While there is no single federal law governing how credit card information must be stored, PCI compliance establishes the baseline security framework businesses are expected to follow. Below are several trusted, PCI-compliant methods for securing cardholder data:
Cryptography: The process of encrypting payment information so it becomes unreadable to unauthorized users and can be accessed only with a decryption key.
Truncation: This process removes all but the first six and last four digits of the primary account number (PAN).
Tokenization: This method replaces card details with an arbitrary number called a token. While the token alone is worthless to outsiders (since it can never be reverted to the original card details), it allows businesses to access the real data through their security solution provider.
Hashing: In situations where the original card number is not required, data can be converted into a unique index (a hash value). This process is irreversible, meaning the PAN cannot be reconstructed from the hash value alone.
Data breaches can be catastrophic for both clients and law firms. Beyond exposing a client’s financial information, a breach can damage your firm’s reputation, undermine client confidence, and create long-term operational and legal consequences.
Improperly storing credit card information can also be expensive. PCI non-compliance may result in penalties, fines, and potential legal action against your firm. In some cases, fines can range from $5,000 to $100,000 per month until violations are corrected, according to VikingCloud’s PCI DSS compliance guide.
And these risks aren’t theoretical—large-scale breaches continue to impact millions of individuals. For example, the University of Phoenix reportedly experienced a breach impacting 3.5 million individuals, illustrating how quickly sensitive data exposure can escalate into a major reputational and financial event.
Ultimately, securely storing credit cards is a responsibility your firm can’t afford to take lightly. PCI compliance and strong data security practices are essential to protecting clients and preserving the trust your firm is built on.
While storing credit card information can feel intimidating, there are a few best practices that reduce risk, keep your clients' data safe, and maintain your firm's reputation.
Use approved hardware and software
Whether you accept payments by phone, mail, in person, or digitally, it's imperative that every method is secure. This includes the hardware and software used to collect and store each payment method.
One way to guarantee that your chosen hardware and software are PCI-compliant is to verify their status on the PCI DSS website. The PCI Security Standards Council (PCI SSC) makes this data readily available and easily searchable by company name, model number, or approval number. All products and solutions have been tested by third parties to PCI payment security standards.
To check your device's security status, view the list of PCI-approved products and solutions.
Be aware of what you can and cannot store
Safeguarding client payment information is a core part of maintaining client trust and protecting your firm’s reputation. PCI standards clearly define which types of card data may be retained and which must never be stored. The overview below provides a breakdown of these categories.
Data you are allowed to store (when encrypted):
Cardholder name
Expiration date
Primary account number (PAN): 14-, 15-, or 16-digit number printed on the card
Service code: data embedded in the magnetic stripe, not visible on the card
Data you are not allowed to store (even if encrypted):
Card validation value (CVV): 3- or 4-digit security code printed on the card
PIN
PIN block: Encrypted version of the PIN
Full magnetic stripe data
For more information on PCI DSS data retention and disposal requirements, check out this guide.
Encryption of sensitive information
When storing credit card information is necessary, encryption is critical for securing sensitive data. Recurring payments are a common example of when this process is unavoidable. To receive automatic payments, law firms must securely collect credit card information, then store it in a protected format for future processing. The type of encryption required often depends on how the information was collected and where it will be stored.
At the same time, PCI DSS emphasizes data minimization—firms should only store cardholder data when it is truly necessary and retain it only for as long as needed. Keeping unnecessary payment information on file increases the risk of breaches and potential liability.
For example, digital payments require strong encryption to reduce the risk of theft, interception, or unauthorized use. Today, many payment systems rely on advanced encryption standards such as AES-256, widely recognized as a highly secure method for protecting sensitive information. If your firm uses a service provider that handles credit card processing and secure storage, encryption is typically built into the platform.
Encryption can also be applied to audio files for payments processed over the telephone. While easily overlooked, audio recordings can expose sensitive data if they’re not properly secured. These recordings should be password-protected and encrypted to protect their content. Furthermore, if speech-to-text conversion software is in place, it’s also crucial to encrypt the data as soon as possible.
Use only trusted service providers
One of the most secure ways of offloading risk is to leave it to the professionals. Third-party payment service providers, like 8am™ LawPay, handle every component of safely accepting, managing, and storing customer credit card information. These platforms remove the burden from your firm so you can focus on handling cases, growing your clientele, and accepting credit card payments without worrying about dangerous data breaches and their consequences.
Using a trusted service provider can significantly reduce the time and effort required to meet PCI compliance requirements. A Qualified Security Assessor (QSA) audits the service provider’s payment policies, procedures, and systems to confirm they meet established security standards.
However, it’s important to note that merchants—including law firms—retain ultimate responsibility for their own PCI compliance. While partnering with a compliant payment provider can simplify the process and reduce your scope, firms must still ensure their internal practices and procedures align with PCI DSS requirements.
Make accepting payments more straightforward and secure with legal billing software that removes the guesswork from PCI compliance. At LawPay, our secure payment technology provides the highest level of protection and mitigates your firm's payment-related risk.
Collect credit card information securely, then save it as a stored payment method tied to each contact for future use. Card details are protected by advanced encryption, ensuring your firm maintains PCI compliance.
As a PCI level 1 service provider, LawPay adheres to rigorous security standards for ongoing security assessments. In addition to the required annual audit, a Qualified Security Assessor also performs non-compulsory quarterly scans of the payment system to give law firms peace of mind that their clients have the most up-to-date protection.
To learn more about how LawPay can help your practice manage and protect your clients’ credit card data, read our security overview. Ready to see firsthand how LawPay strengthens payment security while simplifying billing, invoicing, and payments? Schedule a demo or sign up now to get started.
