Taking Credit Cards with your PTA

Many PTAs are asking if they can take credit cards for membership and for fundraising items.  Utah PTA requires the following guidelines to be met:

  1. Check with your Region Director to find out if your school district has a policy for or against PTAs using credit cards in their school. We must always follow district guidelines as we are guests in their schools.
  2. Local PTAs should NOT accept credit cards unless there are at least three check signers and Utah PTA strongly suggest that they are bonded board members. (Bonding can be purchased for around $100 a year and will cover any board member who handles money, up to $10,000 through AIM Insurance, a Sponsor of Utah PTA.) There are also other Insurance companies that offer the same services.  
  3. Local PTAs must be following proper procedures as a board with the following:
    1. Holding monthly board meetings
    2. Giving a verbal treasurer's report at each board meeting
    3. Monthly reconciliation of bank statements
    4. Minutes taken at every board meeting and printed out for the next meeting
    5. Follow and adhere to all internal controls and financial guidelines in the Treasurer's Handbook
  4. The board needs to vote to begin accepting credit cards for the first time. It must be made as a motion at a board meeting where a quorum is present, it must be voted on and it must be recorded in the minutes.
  5. Open an email account only used for the PTA (sunshinepta@....com)  Give access to all executive members to check the email account at all times. 
  6. Open the account with the Credit Card Company (ie: Square, PayPal, Intuit, etc.)
    1. Use the email that you opened for the PTA for this account.
  7. Print out payment notification emails or a statement and attach to a funds received form to account for funds transferred into the account.  
  8. Have a non-signing board member reconcile the account first, then the President, then the Treasurer. 

Peer to peer’ cash payment applications

As many PTAs move to online banking and payment systems, it is important to understand the possible liabilities and rules regarding such. ‘Peer to peer’ cash payment applications such as Venmo, Zelle or Cash App should NOT be used for PTA banking needs, for the following reasons:

  1. Cash payment applications are ‘peer to peer’ platforms, and do not support nonprofit accounts or offer bank level security.
  2. The use of Venmo for any financial transactions related to your unit (including accepting payments for membership dues) violates the terms of Venmo’s own user agreement.
  3. Despite Venmo’s new ‘Venmo Business,’ PTAs still cannot use this app for any payments, as it is still considered a ‘peer to peer’ platform.
  4. Venmo Business has this added language, which would put you as unit leader in an unacceptable liability situation: Authority of Officers andEmployees. You agree that all officers, employees, agents, representatives and others having access to the username and/or password shall be vested by you with the authority to use Venmo and to legally bind you. You shall be responsible for all actions by current and former officers, employees, agents, representatives and others, regardless of whether authorized by you, that access the Venmo Services using your username and password. YOU ASSUME THE ENTIRE RISK FOR THE FRAUDULENT, UNAUTHORIZED OR OTHERWISE IMPROPER USE OF YOUR PASSWORD. WE SHALL BE ENTITLED TO RELY ON THE GENUINENESS AND AUTHORITY OF ALL INSTRUCTIONS RECEIVED BY US WHEN ACCOMPANIED BY SUCH PASSWORD, AND TO ACT ON SUCH INSTRUCTIONS.
  5. There is little to no financial protection for your unit, or for you as a unit leader, when using cash payment applications.
  6. Your Fidelity Bond (Crime) Coverage through AIM is NOT intended to cover claims for loss of funds related to the use of Venmo or other like cash payment applications for the aforementioned reasons.

Units that want to accept electronic or credit card payments can use programs like MemberHub, PayPal, Cheddar Up, or Square. These programs have sufficient banking and financial protections for your unit, and for you as a unit officer, and NFP use of the aforementioned electronic or credit card payment programs is allowed.  For More info about these types of programs, Vist the Online Payment Collection Systems 

Utah PTA Venmo Policy

Until Venmo supports nonprofit or group accounts, don't use Venmo for your PTA. Venmo. Reports have been received of Venmo freezing accounts or reversing charges on unauthorized business accounts. A group Venmo account is in beta testing and Utah PTA will update you with new guidelines once they release it. We suggest using Paypal for online payments or Square or another similar device for taking credit cards in person. As a reminder, PTAs who accept credit cards need to follow the credit card guidelines stated above which are also found in the Treasurer Handbook.

New Utah PTA Policy - Pre-funded Spending Cards

Pre-funded Spending Cards allow your PTA/PTSA to provide board members the option to pay for items directly from the PTA using a credit card type spending card.  For details, policy and next steps your PTA needs to take to start using visit the Pre-funded Spending Card Page

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