Online Payment Dos and Don’ts for PTAs

If you visit any PTA message board, it’s almost guaranteed you’ll see a post that goes something like this: “Looking to take PTA payments digital … what platform do you recommend? I hear Venmo is not great for PTAs. Is that true?”

It’s a common conversation, and for good reason. Now, more than ever, PTAs are looking to take payments—including membership renewals and fundraisers—virtual. And peer-to-peer (P2P) payment platforms, like Venmo, often come to mind because parents use it for other things, such as paying the babysitter or a friend.

If you’re looking to move your PTA payments online, keep reading to learn:

  • The top three reasons why P2P payment platforms (like Venmo) are a no-go
  • Features to look for in an online payment platform for your PTA

Top 3 reasons why your PTA should avoid P2P payment platforms

First off, what’s a P2P payment platform? The graphic below gives a quick snapshot of the payment platform landscape. P2P payment platforms, also known as “peer-to-peer” payment platforms, like Venmo, are typically used to get money from one individual to another (from point A to point B). While they’re great for paying a friend or making a Facebook Marketplace purchase, they are NOT great for PTA payments and here’s why:

  1. Venmo does not support non-profits
    And because of that, it’s possible to have funds frozen if the platform is used in an unapproved way. Most consider this not worth the risk!
  2. Tracking and reporting is almost nonexistent
    Most PTA initiatives involve collecting more than just payment. You need to know who paid, how much, for what—you may even need to collect form information. Collecting and tracking that level of detail on Venmo is just not possible.
  3. Lack of tax receipts
    Email tax receipts are a big deal for PTAs and nonprofits. In fact, it’s a requirement that, if not met, could result in your 501c3 license being revoked. Plus, parents are always asking for a receipt!
  4. Venmo has a weekly payment limit
    While it can vary by user, Venmo (and similar platforms) limit how much money you can collect within a certain time period. If you’ve taken the time to create an amazing event or spirit wear store, limitations are going to be a big challenge!
  5. No way to transfer an account
    Most PTAs have volunteers who transition as their children graduate or as their schedule allows. Not being able to transfer a Venmo account means your PTA will be reinventing the wheel—with no history to speak of—year after year.

For these reasons, and so many more, you want to select a payment platform that is made to collect from groups and communities (one that falls squarely in the center column of the graphic below) and can meet your PTA’s evolving needs.

Features to look for in your PTA payment platform

At the highest level, your PTA should look for a payment platform that is:

  • Flexible (PTAs collect for so many different things!)
  • Easy (Volunteers have varying levels of tech fluency!)
  • Free (Who wants to commit to a hefty monthly or annual fee?)

After working with thousands of PTAs for nearly a decade, at Cheddar Up we feel it’s clear that PTAs need the following features in a payment platform:

  • Friction-free payments
    Look for a platform that lets your community click and pay. Parents should NOT need to create an account or download a mobile app to pay. 
  • Payments + Information
    PTAs typically need to collect more than just payments (such as T-shirt size, contact information, etc.). Find a platform that lets you collect unlimited payments and forms.
  • Tracking
    Look for robust, easy-to-use and dynamic payment and information tracking—that you can view online or download. This saves volunteers hours, eliminates data entry and spreadsheet jockeying.
  • Handoff
    Make CERTAIN that you can easily transfer your account to incoming PTA board members. If you are going to invest time to innovate your PTA payment system, you want to make sure it sticks for years to come.
  • Point of sale
    It’s normal for PTAs to need to collect online and in-person payments. Find a platform that does both—well. You want to be able to collect online and point-of-sale payments (with mobile apps and Bluetooth card readers) so all tracking and funds stay in one spot!
  • Low, flexible fees
    You want low fees, an amazing feature set, payment method optionality and the ability to pass fees to the payer. Bottom line, with any online system, fees are always factor. Pick a platform with fee optionality and you’ll be in good hands.

Nichole Montoya is the co-founder and CEO of Cheddar Up, a platform dedicated to helping thousands of PTAs and similar groups easily collect payments and information online. To see examples of online PTA collection pages, visit our archive.

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