We take our role in providing guidance and education regarding the card payment industry very seriously. At our own expense, we have vigorously defended our right to continue expose unethical and predatory practices in the industry, successfully defeating every attempt to silence us. However, fending off frivolous lawsuits is costly. To sustain these efforts, one of the ways we generate revenue is through affiliate partnerships with ethical providers. This means that some of our outgoing links connect business owners to trustworthy, low-cost payment processors, which is what most of our readers seek. We see this revenue channel as a win-win-win for everyone involved. Business owners find good processors, processors get good clients, and we are able to continue to provide a valuable service to the small business community. We also recommend and link to many services that do not compensate us. Our priority is to guide you to the best solutions for your needs, regardless of potential revenue. If you have questions, please feel free to contact us.
All mentions of rate and fee costs are estimations based on publicly available information and client feedback. Actual costs may vary based on a variety of factors unique to your business.
In this review of Etsy Payments, we take a closer look at the payment system Etsy uses for transactions on its platform. We’ll cover its features, pricing, contract terms, and customer feedback. We’ll also review fee transparency, the quality of customer support, and overall user satisfaction. By the end, you’ll know whether Etsy Payments is the right choice for handling your Etsy transactions.
Launched in May 2017, Etsy Payments is a merchant account solution that enables Etsy sellers to accept debit and credit card payments through their e-commerce stores. Etsy Payments is a rebranding of Etsy Direct Checkout and is not related to Sell on Etsy, which is a discontinued mobile card swiper from the company. Etsy Payments is the only option for accepting e-commerce payments through Etsy at this time, and it enables merchants to accept all major credit cards, debit cards, Etsy gift cards, PayPal, Google Pay, Apple Pay, Klarna invoices, iDEAL, and Sofort transactions.
Etsy is not itself a payment processor, so it has integrated third-party payment processors to provide their credit card processing services. The service is made possible through Etsy’s partnerships with PayPal, WorldPay, Adyen, and other payment processors such as Square for in-person payments. Funds collected through Etsy Payments are deposited directly into the merchant’s bank account every Monday, but merchants can manually initiate a deposit on other days of the week. For each payment through Etsy Payments, U.S. merchants are assessed a per-transaction fee of 3% plus $0.25. It is important to note that this fee applies to the full purchase price of the item, including shipping and any applicable sales tax.
While there are over 10 negative reviews of Etsy Payments, many of them appear to be mild complaints aired in Etsy support forums. This suggests that Etsy is likely not engaged in any fraudulent activities. Most grievances revolve around the platform’s fund hold policy, as evidenced in the comments section below this review. Some merchants also express frustration with the service’s high transaction fees, although they acknowledge this as an inherent aspect of using Etsy. Additionally, the integration of PayPal into Etsy Payments has garnered a few negative comments.
To date, there are no ongoing class-action lawsuits or FTC complaints against Etsy Payments. Merchants dissatisfied with the service and seeking resolution outside the legal realm can consider reporting their concerns to relevant supervisory organizations.
Etsy provides phone support for users of Etsy Payments, albeit with the requirement for merchants to request a callback from Etsy rather than accessing a publicly available number. Additionally, Etsy offers email support and maintains an active user forum for general inquiries. While these options demonstrate a level of support, they fall short of our expectations for top-rated payment processors with excellent customer service.
| PaymentPop | 5 |
|---|---|
| BBB Rating | N/A |
There are no negative reviews published about Etsy Payments on the PaymentPop website.
Etsy Payments makes selling on the platform incredibly simple. Everything from order tracking to payouts is handled in one place, and I never have to worry about payment delays. It’s streamlined, secure, and perfect for small shop owners like me.
Etsy Payments has no dedicated profile with the Better Business Bureau. However, the BBB currently awards Etsy an “A” rating and is showing accreditation for the company since 2016. Etsy has received 1,196 complaints in the past 36 months, as well as 217 informal reviews. These complaints are mostly related to shipping disputes, account cancellations, and other issues associated with the Etsy online marketplace. Since this profile lists complaints related to all facets of Etsy’s service, we will not factor it into our overall rating for Etsy Payments.
Etsy’s pricing for merchants varies by country. For U.S. merchants, Etsy applies a fee of 3% plus $0.25 per transaction, which covers the total purchase amount including sales tax and shipping. Canadian merchants face the same rates for domestic orders, whereas UK merchants are charged 4% plus £0.20 per transaction. Additionally, international transactions incur a 2.5% conversion fee. These charges are on top of Etsy’s listing fees and basic transaction fees, but there are no monthly, annual, or cancellation fees with Etsy’s service.
Some users in Etsy’s forums have mentioned delays in funds deposits. New merchants typically experience a three-day hold on deposits initially, after which funds are available for next-day deposit. Concerns about Etsy’s fund holding policy exist, though there haven’t been major grievances about significant amounts being withheld. Etsy’s terms stipulate a standard fraud prevention policy, which can include holding funds in a reserve account for up to 180 days or to offset costs from chargebacks.
Etsy’s rates, at 3% plus $0.25 per transaction, are marginally higher than many competitors and traditional merchant accounts. This rate also applies to integrated PayPal payments, which may exceed PayPal’s own transaction fees. Despite its basic rate of 3% plus $0.25 and a general per-transaction fee of 5%, Etsy Payments doesn’t typically offer cost savings compared to other options or faster deposit times. However, the platform has received relatively few complaints regarding its payment services. Considering the overall neutral to positive feedback from merchants, a “B” rating seems fitting for Etsy in this aspect.
Etsy Payments is the only option allowed within the Etsy ecosystem and is not available outside of it, so the company only has to market to its new and existing users. Etsy, therefore, does not engage in telemarketing, outside sales efforts, or any other sales tactic that typically results in merchant complaints.
The company clearly discloses its pricing for Etsy Payments on its website, and we have found no complaints that mention misrepresentation or deception by Etsy representatives. We will therefore award the company an “A” in this category for the time being. If you believe that Etsy or one of its payment partners has added hidden fees to your contract, you can double-check your pricing with a third-party statement audit.
Compare Etsy Payments to competitors that earned top marks.
Etsy Payments rates as an average option for e-commerce merchants who wish to accept credit cards online. The service imposes a transaction fee of 3% plus $0.25 per sale, a rate that is marginally higher than most of its competitors. Moreover, it offers a weekly deposit schedule instead of next-day deposits, which might present challenges for some sellers. However, Etsy Payments is currently the only option available for merchants operating on the Etsy platform.
Etsy merchants are encouraged to explore and compare all e-commerce merchant account options available before committing to Etsy Payments. While it may be the default choice, understanding the costs and features will ensure an informed decision that aligns with their business needs.
| CEO | Josh Silverman |
|---|---|
| Headquarters | 117 Adams St, Brooklyn, New York 11201 |
| Customer Service | Online Contact Form |
| Website | etsy.com/payments |
