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