Etsy Direct Checkout Review

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Updated 2/6/2019: Etsy Direct Checkout was renamed Etsy Payments in May 2017. See our Etsy Payments review for current information about this company.

Etsy Direct Checkout ( is a payment processing option for Etsy merchants that enables shop owners to accept credit card payments through their online stores without the need for a third-party payment processor. The service is made possible through Etsy's partnerships with WorldPay, PayPal, Adyen, and other payment processors. Funds collected through Etsy Direct Checkout 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 Direct Checkout, U.S. merchants are assessed a per-transaction fee of 3% + $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.

Etsy sellers are not required to use Etsy Direct Checkout, and many choose to use PayPal or an integrated third-party merchant account. However, new Etsy merchants can no longer use only PayPal as a standalone checkout option. PayPal can be used, but it must be integrated with a Etsy Direct Checkout account. Etsy does not charge merchants extra for using an outside payment processor.

In October 2014, Etsy launched a mobile phone card swiper and app called Sell on Etsy that allows merchants to accept in-person payments. You can learn more in our Sell on Etsy review. Chad Dickerson is the CEO of Etsy.

Key Points

  • Sales & Marketing: Etsy Direct Checkout does not hire independent sales representatives and has not received any complaints about its sales practices.
  • Costs & Contract: Etsy Direct Checkout charges 3% plus $0.25 per transaction on top of the normal Etsy sales fee of 3%.
  • Complaints & Service: Etsy Direct Checkout has received more than 10 public complaints.
  • BBB Rating: Etsy currently has an “A+” rating with the Better Business Bureau and has received 445 complaints in the last three years.
  • Rates & Fees: How Merchants Got The Best Rates With Etsy Direct Checkout

Etsy Direct Checkout Customer Reviews

Here's What Their Clients Say

Customer Reviews Summary
Total Online Complaints 10+
Live Customer Support Yes
Most Common Complaint N/A

There are more than 10 negative Etsy Direct Checkout reviews, but many of them are simply mild complaints in Etsy support forums. This indicates that Etsy is likely not a scam of any kind. Most of the complaints are related to the service’s fund hold policy and can be found in the comment section below this review. Other merchant reviews express frustration with the high transaction fees associated with the service, but these reviewers also acknowledge that it’s easy to deactivate Etsy Direct Checkout if desired. The company’s decision to fold PayPal into Etsy Direct Checkout has also generated a few negative comments.

Etsy does offer phone support for Direct Checkout users, but merchants must request a phone call with Etsy rather than dial a publicly available number. Etsy also offers email support and an active user forum for general questions.

Etsy Direct Checkout Online Ratings

Here's How They Rate Online

Online Ratings Summary
Product & Service Complaints 249
Billing & Collection Complaints 65
Advertising & Sales Complaints 31
Guarantee & Warranty Complaints 5
Delivery Complaints 95

The Better Business Bureau currently awards Etsy an “A+” rating and is not showing accreditation for the company. Etsy has received 445 complaints in the past three years, but 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 Direct Checkout.

Etsy Direct Checkout Fees, Rates & Costs

A Closer Look at The Contract

Cost & Fees Summary
Swiped Rate N/A
Keyed-in Rate 3% + $0.25
Early Termination Fee None
PCI Compliance Fee None
Equipment Lease Terms N/A

For U.S. merchants, Etsy charges a per-transaction fee of 3% plus $0.25 per transaction, and this rate is applied to the entire purchase price including sales tax and shipping. Canadian merchants will pay the same rate as U.S. merchants for domestic orders, while UK merchants are charged a fee of 4% plus £0.20 per transaction. International payments are assessed an additional per-transaction conversion fee of 2.5%. These costs are in addition to the listing fees and basic per-transaction fees charged by Etsy. There are no monthly, annual, or cancellation fees associated with the service. For a full list of Etsy’s rates for each country, see section 6 in this document.

There are a few complaints about fund holds and deposit waits in this support thread. It seems that there is an initial delay of three days for each deposit upon a merchant’s initial signup, and then funds become available for next-day deposit if necessary. There are also reports from some concerned merchants about Etsy’s fund holding policy, but we have not found any detailed complaints that mention a significant amount withheld. Etsy’s terms of use outline a fairly standard fraud prevention policy that allows the company to hold funds in a reserve account for up to 180 days or to recover costs associated with chargebacks from the merchant. Etsy does not appear to abuse this policy.

Etsy’s rates are slightly more expensive than most of the company’s competitors and most traditional merchant accounts. In addition, it appears that Etsy charges its 3% plus $0.25 rate for integrated PayPal payments as well, which is higher than PayPal’s standalone per-transaction fees. The base rate of 3% plus $0.25 is not especially competitive, and it comes on top of Etsy’s general per-transaction fee of 3.5%. Although Etsy’s Direct Checkout option is not likely to save merchants money over the competition or result in quicker deposits, there are remarkably few complaints about it online. There are also no complaints about fund holds. In light of the service’s neutral-to-positive reception among merchants, we feel that a “B” rating is appropriate for this category.

Etsy Direct Checkout Employee Reviews & Sales Tacitcs

Should You Work For Them?

Jobs & Marketing Summary
Employs Independent Resellers No
Advertises Deceptive Rates No
Discloses All Important Terms Yes

Etsy Direct Checkout is not available for integration with third-party online markets, 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 Direct Checkout 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.

Our Etsy Direct Checkout Review Summary

Our Final Thoughts

Etsy Direct Checkout rates as an average option for e-commerce merchants who want to accept credit cards online. The service charges a fee of 3% plus $0.25 per transaction, which is slightly more than most of its competitors, and it has a weekly deposit schedule rather than next-day deposits. However, it’s very easy for Etsy merchants to turn the service on or off if they are dissatisfied, and they are by no means required to use Etsy Direct Checkout in their Etsy stores. Merchants are encouraged to consider all possible payment acceptance options before installing an online shopping cart in their stores.

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Which is Most Important for You?

If you had to pick one, which quality would you say will be the most important with your next credit card processor? Tap or click your selection to register your vote:

  1. Low Transaction Fees
  2. No Monthly Fees
  3. No Contract
  4. Reliable Customer Support
  5. Quick Signup

Testimonials & Complaints

How Did Etsy Direct Checkout Treat You?

10 User Reviews

  • Molli

    Who gave them an A? Apparently they don’t actually use Etsy. Etsy direct checkout is the worst. Etsy sucks! Right now we are waiting DAYS for our orders to process. Etsy does not update the progress for us. Many of us are having orders cancelled because they can’t process. Don’t sell in Etsy. Don’t sell on Etsy. They gouge you and have zero customer service. And sales overall are DOWN.

  • Brittany

    Not sure what their issue is, but direct checkout goes down fairly regularly. Merchants like me are left unable to fulfill orders for days while Etsy claims to be working with their 3rd party processor to fix it. This isn’t an isolated incident for them, while other payment processing services never (or extremely rarely) have downtime. I’ve never had an issue with PayPal, Square, or my other payment processing services. Etsy’s needs some serious work.

  • julie webster

    If its working ok its good, but the last few days have been appalling. Same old updates saying that they have a problem with processing payments, no real information
    We are all losing business. If they can’t fix it get someone who can. Worldly are saying its not an issue with them Etsy are saying its their third party processor who is world pay apparently.

    Please sort this remember you are still getting paid at Etsy we are not and it is giving our business a bad name


  • Darlene

    Three significant failures since February. The latest occurring over the 4th of July weekend. Issues began July 1 and as of 2:11 PST on July 5 it is not resolved. Etsy sellers are not being paid for transactions that Etsy can not process.

    • Marina

      completely agree. they won’t let me remove it so after weeks of fighting I selected “Other” which allowed me to unselect Direct Checkout and now I send PayPal invoices. Screw ’em!

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