I'm guessing that the letter from the PTA may have had two aims -- (1) to warn parents not to make any further donations to the PTA using that vendor site, and (2) to plant the idea of a direct donation to replace the one(s) that are now apparently never getting to the intended recipient.
This really sounds like the PTA may have to chase that vendor for their money, and I don't hold out much hope for success. As to the earlier comments, I agree -- Not Reg E, and no Zero Liability.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8