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Set up Etsy Payments or lose your selling privileges

By Chris Dawson April 12, 2017 - 6:50 am

Etsy have renamed ‘Direct Checkout’ to ‘Etsy Payments’ and are now requiring that all sellers sign up to their newly named checkout flow.

Previously, Etsy have allowed sellers to add their own PayPal account or other payment methods. Now they are requiring all payments, including PayPal, to go through their own checkout.

Because we want buyers to have a consistent experience when they check out on Etsy, we’re requiring that all sellers in eligible countries set up Etsy Payments by the 17th May, 2017. If you don’t set up Etsy Payments, your selling privileges will be suspended on the 18th of May.

If you’re already using Etsy’s payments platform, there’s nothing you need to do. If you only accept payments through PayPal or manual payment methods, you’ll need to set up Etsy Payments by connecting your bank account and verifying your identity. If you currently have standalone PayPal in your shop, you can still choose to keep your PayPal sales separate.

Etsy justify the move saying that buyers want more ways to pay and Etsy Payments gives them many options, including PayPal, Apple Pay, and Etsy gift cards. Some sellers have only offered PayPal in the past, but Etsy Payments means that all sellers in qualifying countries will now accept credit cards and mobile payment methods such as Google Pay and Apple Pay.

According to a 2016 Etsy analysis, in countries where Direct Checkout was available, active sellers using Etsy Payments saw more than twice the revenue (on average) of active sellers not using Etsy Payments.

Etsy will deposit all sales into your bank account in your local currency, no matter how buyers pay. You can get paid daily, weekly, biweekly, or monthly. Request additional deposits anytime. All sales processed with Etsy Payments will also qualify for the Etsy Seller Protection Policy.

Sellers will be disappointed by the move as there are fees to pay on Etsy Payments – typically between 3% and 4% plus a flat fee. The cost varies by country but for UK retailers is 4% + £0.20 per transaction.

  • Deb
    5 years ago

    “Now they are requiring all payments, including PayPal, to go through their own checkout”

    This is incorrect. You can keep your stand alone Paypal account but you must have Etsy Payments.

    • 5 years ago

      You can keep your own PayPal account by nominating to but it still goes through Etsy payments and buyers can choose not to pay with PayPal if they prefer another method.

  • 5 years ago

    Regarding the new etsy policy starting on 17 May 2017
    Etsy Payments:
    Hi Chris,
    First – thanks for this very clear info.
    Can you help with the following:
    How much are the correct fees etsy will charge when set-up
    the “new” Etsy- Payment” method.
    For example:
    At the moment I pay 3,5 % to etsy for every sale.
    Plus between 2% and 5% (depending on the buyers country) on every amount
    paid via paypal. I only except payments by paypal at the moment.
    My question:
    Are there any additional fees on top of the 3,5% by etsy
    having this “new” payment method?
    And if so – how much are the fees?
    I could not find a clear answer at etsy so far.
    And – am I obliged to except credit cards as well with this method?
    Thank you very much in advance for your reply.
    Best regards,
    Karin JB

    • 5 years ago

      Hi Karin, Yes you’ll pay processing fees which vary by country. You’ll find selling and payment fees on Etsy here

      You will be obliged to accept a range of payment methods including credit cards and mobile payments (Apple Pay, Android Pay) but you won’t have to handle them directly. Etsy Payments will handle the payment and then remit the money to you.

  • 5 years ago

    Hi. My etsy sales now goes to PayPal to my husband account. Etsy now forces us to use direct check out. Shall direct check out now on etsy must go to my personal bank account or it must be the same bank account that paypal has ( my husbands account) ? Thank you

  • 5 years ago

    I just left etsy. I was there for 3 years. reason I left is because of the change.
    it started a few days ago. I got an order, but this time no chac-hing sound from my app it was an email notifying me I have an order but its processing. ??? I had no idea what this was. the order needed to be filled right away but I couldn’t fill the order because I wasn’t sure what was going on.

    so I arranged to get a phone call from etsy help. I was told there was no bug everything was OK and make your order it will be processed soon. ok.. another day went by but still going through a process faze. I decided to test a theory I had that etsy had a bug. reasons… I noticed alot of members posting in the forum saying the same thing as me but a moderator would come in give them some lame help me link and say everything was ok and lock the thread. like they were hiding the fact something was wrong.

    I know every thread I made it was locked and I was later called a SHILL etsy has a link to explain what shilling is. any ways I made an experiment profile I made a listing for 1.00 and bought it from myself. smae thing happened it went through a process. I called etsy again told them what I did and said I think you guys have a bug why isnt payments going through? lady sounded nervous and really couldn’t answer me but reassured me everything would be ok.

    another day goes by now the payment has gone through but now it has to sit for 24 hours to transfer not sure why but ok so I was 24 hours I log in now my money is there but I cant transfer because its not the desired amount etsy wants.

    so today being Thursday im being told it will have to wait till the following Monday to transfer then I will be able to request my money be transferred to paypal. Meanwhile days ago etsy took their cut. Meanwhile I have to wait days.

    While posting in the forum I got messages from others saying they are having similar problems and no one is helping them

    I have been there for 3 years I cant believe they have done this. I don’t know who said these changes would be good cause they are destroying the site.
    BEFORE when an order would go through on the etsy app id hear cha-ching then get a notification I have an order and then email my money is in my paypal.
    It was easy it was brilliant and good for all
    This new change you can select the stand alone paypal but doesn’t matter they are still holding money for what reason I don’t know… im so upset about the change and so stressed out!

    • Vicky
      5 years ago

      Thank you Pam for posting this, I am in the same boat I am happy with my Paypal services and I think I will close shop on the 17th. I have asked around but all the other shop owners are beating down on me telling me DC is so good and I am a fool for not accepting and blablabla it’s like they have wool over their eyes. I tried to explain about the paypal still processing via Etsy, and the processing and delaying issue but they are not seeing it. So I gave up. I have been on Etsy since 2012 and sadly it is getting worse and worse so I guess it is time to move. The majority will stay but I won’t be one of them. Etsy is getting too greedy and when something is wrong they are too busy to help, too many issues and too many sellers.

  • there is no problem here
    5 years ago

    here are ‘some threads’ I gathered and you will see 99% of them closed threads. there is a bunch more all being closed…
    add a photo of bag dad bob here with the caption everything is ok everything is normal.
    Order #1192822573 on Apr 14, 2017–delayed processing
    https://www.etsy.com/teams/7720/bugs/discuss/18335115/
    All orders from 19th are processing
    https://www.etsy.com/teams/7720/bugs/discuss/18332234/
    Order #1193475737
    https://www.etsy.com/teams/7720/bugs/discuss/18336135/
    Payment still processing
    https://www.etsy.com/teams/7720/bugs/discuss/18332320/
    Customer placed an order, I can’t see it
    https://www.etsy.com/teams/7720/bugs/discuss/18335873/
    Deposit Time Changed???
    https://www.etsy.com/teams/7720/bugs/discuss/18336295/
    Order still processing
    https://www.etsy.com/teams/7720/bugs/discuss/18331302/
    Delay in processing Etsy payments
    https://www.etsy.com/teams/7720/bugs/discuss/18335513/
    Deposit not depositing the entire amount.
    https://www.etsy.com/teams/7720/bugs/discuss/18334009/
    HELP! Order still processing for 3 days – no reply from Etsy
    https://www.etsy.com/teams/7720/bugs/discuss/18332504/
    +2 days processing time!?
    https://www.etsy.com/teams/7720/bugs/discuss/18336353/
    Order showing up in my stats but not open orders
    https://www.etsy.com/teams/7720/bugs/discuss/18336487/
    Payment Not Depositing
    https://www.etsy.com/teams/7720/bugs/discuss/18336485/
    I still do not understand this new change with the money holdings..
    https://www.etsy.com/teams/7722/discussions/discuss/18334517/
    Sold item not showing on Orders page
    https://www.etsy.com/teams/7720/bugs/discuss/18333851/
    Orders still processing after 24 hours?
    https://www.etsy.com/teams/7718/questions/discuss/18333413/
    Payment Not Processing
    https://www.etsy.com/teams/7720/bugs/discuss/18283447/

    go to the forum you will find so many more https://www.etsy.com/forums

  • Vicky
    5 years ago

    Thank you Chris for this post as well, it is pretty clear and informative. I am very unhappy with how many changes Etsy is forcing us to accept, and in the meantime the market is oversaturated and the businesses that profit most are those that sell materials and provide services geared toward other businesses. So that high number of buyers they talk about is made in part of businesses themselves. It has been said over and over that Etsy is making money from sellers but some just don’t see it.
    Anyway thanks for the post.

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