Etsy Payments Review: Fees, Comparisons, Complaints, & Lawsuits
Etsy’s Latest Payment Processing Option
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 Backend Processors
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.
Etsy Location and Ownership
Etsy is headquartered at 117 Adams St, Brooklyn, New York 11201. Josh Silverman is the CEO of Etsy.
Etsy Payments Review Table of Contents
- Costs & Contract: Offers a fixed per-transaction rate of…
- Complaints & Service: Has received more than…
- BBB Rating: Etsy Payments does not have a dedicated profile with the Better Business Bureau. Etsy currently has an “A” rating and has received 1,196 complaints and 217 reviews in the last 3 years. The company has been accredited by the Better Business Bureau since 2016.
- Sales & Marketing: Does not hire independent sales agents and has not received any complaints about its…
Etsy Payments Customer Reviews
Here's What Their Clients Say
|Total Online Complaints||10+|
|Live Customer Support||Yes|
|Most Common Complaint||Delayed Payments|
Low Complaint Total
There are more than 10 negative Etsy Payments 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 this is an unchangeable component of Etsy. The company’s decision to fold PayPal into Etsy Payments has also generated a few negative comments.
Etsy Payments Lawsuits
We have not found any outstanding class-action lawsuits or FTC complaints filed against Etsy Payments. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
Etsy Payments Customer Support Options
Etsy does offer phone support for Etsy Payments 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. This offering falls short of our expectations for top-rated payment processors for great customer service.
Etsy Payments Online Ratings
Here's How They Rate Online
No Dedicated Profile
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 Payments Fees, Rates & Costs
A Closer Look at The Contract
|U.S./Canada Rate||3% + $0.25|
|UK Rate||4% + £0.20|
|Currency Conversion Fee||2.5%|
|Auto-Renew Sold Fee||$0.20|
|Private Listing Fee||$0.20|
|Square Manual Input||$0.20 + Square Fees|
|Early Termination Fee||$0|
Etsy provides various rates for merchant depending on their country of origin. 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.
Delayed Payout Complaints
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 5%. Although Etsy Payments is not likely to save merchants money over the competition or result in quicker deposits, there are remarkably few complaints about it online. In light of the service’s neutral-to-positive reception among merchants, we feel that a “B” rating is appropriate for this category.
Etsy Payments Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Employs Independent Resellers||No|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||Yes|
No Selling Necessary
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.
Transparent Price Quotes
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.
Copyright © 2023 CardPaymentOptions.com, Inc. (Digital Fingerprint: 0d38c6720f0d78a701b74d58653af608). Getting paid to re-write this page? Click here to earn a reward.
Any unauthorized copying and reproduction of the content of this page, including all meta data and computer code, is strictly prohibited. While the information in the above article is believed to be accurate as of its publish date, the author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is provided “as is,” and without warranties. Any and all use of trade names and/or marks are for identification purposes only and shall not be construed as a claim of affiliation, or otherwise, with CardPaymentOptions.com, Inc. ("CPO") in any form. The sole purpose of the material presented herein is to alert, educate, and inform readers. It is not intended as legal or financial advice. We may earn revenue if you obtain services from a provider that we recommend. See this page to learn how we support our operations.