How to become an ESA vendor

Education Savings Accounts now move $5.75 billion+ a year to families across 18 states (per EdChoice program data), and that money is spent with approved vendors — microschools, tutors, therapists and resource sellers. Here’s how to register, invoice correctly, and get paid.

Rules last verified July 2026 against official program sources. Not legal advice.

1. Confirm you’re an eligible provider

Most ESA programs approve microschools, tutoring businesses, therapy practices (OT, speech, ABA), and sellers of curriculum and educational products. Some services require a credential — Texas tutors need a Texas Educator Certificate; licensed therapies need a state license.

2. Register with your state’s program and rail

You register with the state program, then onboard with its payment rail. Three rails handle most of the country:

• ClassWallet — the digital wallet used by Arizona, Utah, Arkansas and others (~2.5% vendor fee).
• Odyssey — program manager and marketplace for Texas and Iowa.
• Step Up For Students — runs Florida’s scholarships and the MyScholarShop marketplace.

3. Invoice so you actually get paid

The biggest mistake new vendors make is sending a generic receipt. Programs require an itemised invoice with the student name, account-holder, service dates, educational subject, your credentials, and amounts. Miss one field and the invoice is rejected. Use the free invoice generator →

4. Stay audit-ready

Keep invoices, service records and curriculum notes per student. Programs review vendors, and being able to produce clean records on request is what keeps the funds flowing.

Every ESA state, compared

Full data (enrollment, sources): ESA program statistics → · ClassWallet vs Odyssey vs Step Up →

Guides by what you do

FAQ

What is an ESA vendor?

An ESA vendor (or approved service provider) is a business families can spend their Education Savings Account funds with — microschools, tutors, therapists, and curriculum or resource sellers. You register with your state's program and its payment rail (ClassWallet, Odyssey or Step Up For Students).

How do I become an approved ESA vendor?

Four steps: (1) confirm your service type is eligible in your state, (2) register with the state program (business details, banking, credentials, and in some states background checks or attestations), (3) onboard with the state's payment rail, and (4) invoice to the program's exact required-field list. Approval timelines range from days to 4–6 weeks (Texas TEFA).

What is needed to set up as a vendor?

Typically: a registered business entity with an EIN, a business bank account (some rails onboard via Stripe or a voided check), any credential the service legally requires (teaching certificate, therapy license), and the state program's application. Texas additionally requires fingerprint background checks through the TEFA program for child-facing staff.

How do ESA vendors get paid?

Families either pay you directly through the rail or you submit an itemised invoice they approve. Funds are deposited into your business bank account. Programs reject invoices missing required details, which is the most common cause of payment delays.

Do I need a teaching license to be an ESA vendor?

It depends on the state and service. Texas requires academic tutors to hold a Texas Educator Certificate; Arizona requires tutoring vendors to attest every instructor holds at least a high-school diploma. Check your state's rules.

What happens to unused ESA funds?

Rules vary: most programs roll unused balances forward within the school year or across years up to a cap, and unspent funds ultimately revert to the state when a student exits. For vendors the practical point is timing — families have real budgets to spend each term, and installment dates (like TEFA's Oct 1 and Feb 1) are when accounts refill.