Etsy Direct Checkout Review
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 (etsy.com) 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.
- 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
|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|
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
|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.
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?
|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.
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