How to Accept Tax-Exempt Online School Orders

Accepting Tax-Exempt Credit Card Purchases from Schools

Sometimes school administrators want to pay via credit card, but don’t want to go through the formal PO process at their school.

These tips can help teacher-authors handle orders from school personnel who are authorized to make online purchases with the school credit card but need a tax-exempt checkout option.

Create an Order Authorization Form

Think of this like a mini-PO. The school fills out the form to confirm:

They are authorized to use their school credit card
The purchase is approved internally
They agree to the price, license, and item details before delivery

This protects you and reassures the school that the purchase is handled professionally.

How is it different from a PO? Schools create POs in their own system. You create the order authorization form with the same item information as the accepted quote. The school purchasing contact signs the form, authorizing you to deliver the order and request payment.

Verify Tax-Exempt Status

Make sure you collect the proper documentation if providing a sales tax-exempt purchase to a school in a location where you would normally collect sales tax.

The school will provide proof of its status. You collect proper tax-exempt documentation from the school and keep a copy for your records.

Deliver Resources and Invoice

Once the school has signed the authorization form, provide the purchased resources, licenses, or digital files. Make sure everything is accessible for teachers or administrators. Send an invoice to request payment.

Process Payment

After delivery, the school pays via a secure processor like Stripe or PayPal. Linking payment to the signed form ensures everything is documented correctly and keeps your records clean.

Tip: Many schools prefer this path because it’s faster than a full PO but still official.

FAQs: Credit Card Purchases from Schools

Website & Store Setup for School Credit Card Payments
What if I already have an online store on my website?
Online stores with automated checkout aren’t set up for tax-free purchases if the buyer lives in a location where you have nexus to collect and remit sales tax.
Can I accept tax-exempt school credit card payments without an online store?
This method works well for school sales. Using this approach for selling to individuals is not recommended due to increased risk exposure.
Do I need a website to accept school credit card payments?
Yes, but it doesn’t have to be complex. A simple landing page with a form and a payment processor like Stripe or PayPal is enough. You don’t need a fully automated e-commerce store. For individual sales, use an automated store or a marketplace like TPT.
TPT Sellers & Direct School Sales
Can I still sell to individual teachers on TPT?
Yes. This method is specifically for direct school sales. Individual teacher purchases can continue through your TPT store without changes.
What if I only sell on TPT right now?
If you plan to use TPT as your only income stream, direct schools to TPT resources for tax-exempt purchases.
Can TPT sellers also sell directly to schools?
Yes. Direct school sales can complement your TPT income stream. Many TPT sellers earn more by offering flexible licensing and payment options directly, often using thier own website as a hub for information.
Can I promote direct school sales on my TPT listings?
No. TPT listings should not direct traffic away from the marketplace. Use your website, social media, or direct inquiries to promote school sales.
Tax-Exempt Status & Documentation
How do I know if a school qualifies for tax-exempt purchasing?
Include a tax-exempt question on your Estimate Request Form so you collect the information before sending a quote.
What if I don’t have to collect sales tax in a school’s state?
This method allows you to accept online credit card sales by manually creating a purchase agreement.
Purchase Orders vs Credit Card Payments
Do schools need a purchase order to pay by credit card?
No, unless thier school requires it. This option is for schools that want to pay online by credit card but still need tax-exempt processing. It’s faster than a formal purchase order while still creating a clear paper trail.
Do teacher-authors need to accept online credit card payments from schools?
No. Accepting credit cards is optional. Some teacher-authors prefer checks or ACH. If you don’t accept credit cards, limit school sales to formal purchase orders processed through the school’s business office.
How do schools choose between purchase orders and credit cards?
Ask upfront. Include a payment preference question on your Estimate Request Form or attach an order authorization form with the quote.
How should I store purchase orders and order authorization forms?
Keep them with quotes, invoices, and tax-exempt certificates. A digital folder organized by school name or order date works well.
Security & Risk Management for School Payments
Is it safe to accept school credit card payments this way?
Yes. Using a signed Order Authorization Form with a reputable and secure processor like Stripe or PayPal creates a documented paper trail and protects both parties.
Is this payment method secure for my business?
Risk tolerance varies, but linking payment to a signed authorization form provides clear proof of approval. Many teacher-authors receive payment quickly when using this method.
Choosing a Payment Processor for School Sales
How do I choose an online credit card processor for school purchases?
Select a processor that supports secure payments and fits your workflow. Many teacher-authors prefer processors that include quote and invoicing tools to keep school orders organized.
Templates, Tools & Support for Teacher-Authors
Do you offer an order authorization form template for schools?
Yes. The Order Authorization Form is included in the Sell to Schools Toolkit.
What if I need step-by-step guidance for selling to schools?
The Sell to Schools Toolkit includes workflows, templates, and guidance for purchase orders, tax-exempt credit card payments, licensing, and school communication.
Related Guide
Need more information about how to sell directly to schools? Visit the complete information hub: School Purchase Orders for Teacher-Authors