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.
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
Debbie
I don’t like it , they hold your money for up to 5 days
Jody
Etsy is now forcing all sellers to use Direct Checkout or have their shops closed starting May. Two weeks notice.
Glinda
It is AWFUL! Sometimes orders are still “processing” for DAYS and the seller cannot ship which means the buyer does not receive their purchase!
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
thanks
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.
Sasha
It is absolutely gouging. Etsy’s going public hit the value of the company hard. They are looking to make it up somewhere. Need another venue for selling online!
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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!
It's Gouging
PayPal Without Direct Checkout:
As of September 7, 2015, new sellers in the US or with bank accounts in the US won’t be able to use PayPal separate from Direct Checkout.