In personal injury law, getting settlement payouts to clients quickly is important for maintaining a firm’s reputation. Traditional methods like paper checks can add unnecessary steps to the process, and clients often end up waiting longer than they should have to.

Digital disbursements offer a more secure and faster way to process settlements. With Litify’s Digital Disbursements, everything is handled within the platform, so firms can manage payouts from start to finish in one place. This means quicker payments and happier clients, plus a lighter workload for the firm.

The challenges of traditional disbursement methods

Despite the progress made in payments technology, nearly 80% of disbursements in the personal injury industry are still made via paper checks. 

This outdated approach can cause problems and make the whole payment process take longer than it should. Clients often have to visit in person, which is an extra hassle they shouldn’t have to deal with. Plus, paper checks carry the additional risk of human mistakes or fraud.

All of these potential issues can damage a firm’s reputation and relationship with its clients. The legal industry desperately needs an option that can meet today’s demands.

The evolution of payment expectations

Consumer behavior has evolved significantly over the last decade, with 68% of consumers now preferring instant payments. Your clients can now order car service and groceries from their phones, pay bills online, or tap to pay when buying products in person. This shift reflects the broader advancements made in payments technology, but the legal industry has been slow to catch up.

Today, clients expect the same level of speed and convenience in their legal transactions as they do when shopping online. The traditional personal injury settlement process doesn’t meet these modern demands. A client could wait several days for a check to arrive in the mail, only to face more delays when they deposit it and wait for clearance.

This is where electronic disbursements step in as a solution.

The business case for digital disbursements

Digital disbursements bring plenty of benefits to personal injury law firms across different areas:

• Time savings: There’s less need for manual follow-ups, so the payout process moves more quickly and with less administrative effort.
• Cost reduction: Traditional paper checks come with various costs, such as printing, mailing, and the potential for mistakes. Switching to digital disbursements helps cut down on these expenses.
• Fewer risks: With digital payments, firms face less risk of fraud and mistakes compared to using paper checks.
• Stronger client relationships: Faster payouts lead to happier clients, which can lead to better reviews, more referrals, and a higher rate of client retention.

These advantages make personal injury settlement payouts simpler, saving time for everyone involved.

Security and compliance with settlement payouts

Digital Disbursements from Litify adheres to rigorous security standards and to federal regulations that protect cardholder data and account information and govern ACH transactions. With built-in safeguards and permissions, you can prevent unauthorized disbursements with a configurable approval process, and multi-factor authentication ensures that payment links are securely sent to clients. 

In addition to these security measures, Litify complies with key industry standards, such as:

• SOC II sets strict guidelines for protecting client data, focusing on security, availability, and processing integrity to maintain privacy and trust.
• PCI-DSS safeguards payment card information, making sure that credit and debit card transactions are securely processed.
• Trust Accounting Regulations require client funds to be managed separately from the firm’s own accounts, so there is a clear record of all transactions.

Digital disbursements specifically for personal injury cases offer even more value. Personal injury firms often deal with high-stakes payouts that require transparency, and they can now quickly process these payouts without sacrificing security or control over the financial details.

It’s time to move beyond paper checks

Traditional methods of personal injury settlement payouts just don’t cut it anymore. Waiting for paper checks and manual processes no longer aligns with clients' expectations.

Digital disbursements are a secure and compliant solution. With Litify’s platform, personal injury firms can improve the entire settlement experience — for clients and staff.

When a firm starts working on a case, Litify captures every expense and provides a visual financial summary of all transactions. As the firm begins negotiations, an attorney can use the settlement calculator to preview different scenarios in real-time based on the financial information already saved in the platform — no spreadsheets required. Now, as a settlement is received, firms can easily approve and digitally disburse payment to the client, and the client can receive funds in the same day. 

Upgrade your firm’s settlement payout system today with Digital Disbursements from Litify for faster payouts, lower costs, and greater client satisfaction.

FAQs

What are digital disbursements?

Digital disbursements are the electronic transfer of funds, so there’s no need for traditional paper checks in settlement payouts. Personal injury firms can process payouts instantly, and clients receive their funds directly into their bank accounts. 

This modern method aligns with the growing consumer demand for digital payments and is a great improvement for law firms.

How do digital disbursements work for personal injury cases?

In personal injury cases, digital disbursements replace paper checks with electronic fund transfers for settlement payouts. Once a settlement is approved, the firm can initiate the transfer directly from the Litify platform, sending funds to clients without in-person visits or waiting for checks to process. 

How long can a disbursement take?

Payouts through digital disbursements are processed on the same day the settlement is approved. Clients won’t have to wait for paper checks to be mailed, cleared, and deposited, which can take several days.

How does Litify Digital Disbursements compare?

Digital Disbursements from Litify stands out because it’s fully integrated into a platform already designed to manage all aspects of legal work. With built-in automation, strong security features, and real-time tracking, it helps law firms process payouts quickly. It lowers operational costs while creating a better overall experience for clients.

Learn more about Digital Disbursements and request a demo today.