Electronic Transactions for your PTA organization

June 26, 2013

North Fulton Council

PTA ®

everychild. onevoice. ®

Should your PTA accept Credit Cards?

The Positives: Most people carry credit cards. Mobility – smartphones & tablets have made it easier to accept

credit cards. More payment methods available to your parent base which can

lead to increased membership, spirit wear, yearbook sales & donations.

Things to consider: You will need to establish appropriate policies & procedures. You will have to secure physical resources (i.e. smartphones or

tablet, wi-fi or data plan, service providers/card swipers). You will need sufficient human resources (i.e. treasurer, volunteers

to complete the credit cards procedures).

Your PTA’s Responsibilities Must hire a 3rd party processing company, who complies with

Payment Card Industry Data Security Standards (PCI DSS) for online & swiped transactions.

Must establish policy/procedures such as: Merchant transactions must be reconciled & signed by two

individuals (i.e. cash verification form). Merchant Service Fees are a separate budgetary line item. All documents with credit card data must be stored in a

secure area; Don’t store PIN, CVV2/CVC2/CID numbers; Never acquire or disclose any cardholder data without the

cardholder’s consent; Ensure volunteers taking credit card information are properly

trained in your credit card policies & procedures Keep proper documentation (i.e. signature of cardholders) for

any possible disputes.

3rd Party Processing Companies

PayPal Non Profit Services Can accept credit cards online or via a free card swiper. All funds collected are placed in the same PayPal account. PTA Treasurer must transfer the money on a regular basis

from the PayPal account to the PTA checking account. Cost: 2.2% + .30 per transaction for 501(c)(3) organizations.

Square Can accept credit cards via a free card swiper. All funds collected are transferred directly into the PTA

checking account. Cost: 2.75% per swipe or a flat monthly fee of $275.

Intuit GoPayment, Merchant on the Move, Mobile Merchant Pro & others

Best PracticesOnline Payments Procedures: This account is for collection of funds only. Establish a separate bank account to restrict internet access

into the general checking account. The non-signer reviewing the monthly bank statements also

reviews the monthly statement for online payments.

Credit Card Payments Procedures: The 3rd party processing company (merchant) must be certified

compliant with PCI DSS. Merchant statements must be clear, detailed and accessible. Accept only swiped transactions, no hand written account numbers. In your merchant contract, confirm only the PTA can confirm a refund

& that the merchant will provide guidance on challenging a disputed payment.

ResourcesGeorgia PTA Guidancehttp://www.georgiapta.org/documents/OnlineReceiptofPaymentsPoliciesandProcedures.pdf National PTA Guidancehttp://www.pta.org/files/Money_Matters_In_An_Electronic_Environment.pdf NFC PTA www.nfcpta.com for this presentation

Other Resourceshttp://www.txpta.org/documents/PTA%20Resources/Treasurer/electronic/Financial%20Procedures%20for%20Accepting%20Electronic%20Payments.pdf