Online payment collection systems designed for business use (i.e., PayPal, Square, merchant account) are an approved method of collecting revenue. Authorized expenses may be paid from this type of account as long as all PTA financial policies and procedures as followed.
Many PTAs are now considering using other electronic conveniences such as PayPal, Square or Givebacks. For example, T-shirt orders can be placed and PayPal used as the payee. The invoice is sent to the PayPal account for payment. After logging into the PayPal account, the invoice can then be approved for payment. The person confirming the payment through PayPal can approve payment using digital cash, a credit card, or other EFT options.
A few items to think about when using an online payment collection system:
1. Is the benefit worth the cost? There is a cost in the time involved in setting up the account as well as transaction fees. If you think that using an online payment system would result in substantial increased donations then it is worth the cost. If it will bring in one or two more than you would have received via check or cash, then probably not.
2. A PTA online payment collection account should be directly linked to the PTA bank account. A PTA should never use someone’s personal or business account for PTA purposes.
3. Online payment collection transactions require the same documentation as other monies received including the purpose and source of the money. It might be helpful if someone other than the treasurer (ex. secretary) be responsible for maintaining the paperwork and the treasurer be responsible to review the documentation and make the download from the collection system if all is in order. This maintains an additional check and balance system.
Make sure that your PTA board approves any Online Payment Collection Method of accepting funds and it is documented in the minutes that it was approved so there is no appearance of one person being in charge of the money and possibly using it for personal or business purposes.
Know the rules of taking credit cards by visiting Taking Credit Cards as a PTA
Breakdown of different types of Online Payment Collection Systems
Cheddar Up - provides a "Point of Sale" platform designed with PTAs in mind. Also includes forms helpful for your PTA. For more Info, visit Cheddar Up
Paypal - provides a non-profit/charity rate of 1.99% + 50¢ per transaction for all major credit cards with no additional charges. For more info, visit PayPal Non-Profit
Square - provides a storefront or "Point of Sale" platform with a non-profit rate of 2.6% + 10¢ per transaction for all major credit cards with no additional charges. The fee for manually-entered transactions is 3.5% + 15¢. For more info, visit Square Non-Profit
Givebacks Store - Givebacks provides an easy-to-use store for each PTA. You can sell memberships, school gear, tickets, donations, and fundraising items in your Givebacks store. Givebacks partners with Stripe to process transactions. Each online transaction has a 3.5% + $0.50 fee. You can decide if you pass the fee on to the purchaser or absorb it by your PTA. For more information about setting up your online Givebacks store, see Givebacks Support or Utah PTA Givebacks Training
Please check with your Region Director and make sure there are no rules in place against these or any Online Payment Collection System.