Cannot render PNG layer transparent

Hi, I’m trying to render a clipart image onto an object as another texture like it’s a sticker. I made the background of the clipart image transparent in Paint.NET, checked RGBA, Used Alpha, Texture faces, etc. I’m not receiving the full transparency effect I am trying to achieve.

I would upload my blender file here, but apparently it’s too large. Also somehow fudged a black line onto the object and would like to remove it. Help, anyone? Thanks.


In material settings enable Transparency checkbox and set alpha to zero
In texture panel set the texture to influence both colour and alpha