Etsy Payments Reviews & Complaints

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Overview

In this review of Etsy Payments, we will provide a detailed overview of the payment processing system used by Etsy for transactions on its platform. We will discuss the various features, pricing structure, contract terms, and customer feedback. Additionally, we will examine the transparency of their fees, the quality of their customer support, and the overall satisfaction levels reported by users. By the end of this article, you will have a comprehensive understanding of whether Etsy Payments meets your needs for processing transactions on Etsy.

About Etsy Payments

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 Payments Customer Reviews

Here's What Their Clients Say

Customer Reviews Summary
Total Online Complaints 10+
Live Customer Support Yes
Most Common Complaint Delayed Payments

Varied Feedback

While there are over 10 negative reviews of Etsy Payments, many of them appear to be mild complaints aired in Etsy support forums. This suggests that Etsy is likely not engaged in any fraudulent activities. Most grievances revolve around the platform’s fund hold policy, as evidenced in the comments section below this review. Some merchants also express frustration with the service’s high transaction fees, although they acknowledge this as an inherent aspect of using Etsy. Additionally, the integration of PayPal into Etsy Payments has garnered a few negative comments.

Etsy Payments Legal Standing

To date, there are no ongoing class-action lawsuits or FTC complaints against Etsy Payments. Merchants dissatisfied with the service and seeking resolution outside the legal realm can consider reporting their concerns to relevant supervisory organizations.

Customer Support Options

Etsy provides phone support for users of Etsy Payments, albeit with the requirement for merchants to request a callback from Etsy rather than accessing a publicly available number. Additionally, Etsy offers email support and maintains an active user forum for general inquiries. While these options demonstrate a level of support, they fall short of our expectations for top-rated payment processors with excellent 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

Cost & Fees Summary
U.S./Canada Rate 3% + $0.25
UK Rate 4% + £0.20
Currency Conversion Fee 2.5%
Listing Fee $0.20
Auto-Renew Sold Fee $0.20
Multi-Quantity Fee $0.20
Private Listing Fee $0.20
Shipping Fee 5%
Transaction Fee 5%
Square Manual Input $0.20 + Square Fees
Early Termination Fee $0

Pay-As-You-Go Pricing

Etsy’s pricing for merchants varies by country. For U.S. merchants, Etsy applies a fee of 3% plus $0.25 per transaction, which covers the total purchase amount including sales tax and shipping. Canadian merchants face the same rates for domestic orders, whereas UK merchants are charged 4% plus £0.20 per transaction. Additionally, international transactions incur a 2.5% conversion fee. These charges are on top of Etsy’s listing fees and basic transaction fees, but there are no monthly, annual, or cancellation fees with Etsy’s service.

Delayed Payout Complaints

Some users in Etsy’s forums have mentioned delays in funds deposits. New merchants typically experience a three-day hold on deposits initially, after which funds are available for next-day deposit. Concerns about Etsy’s fund holding policy exist, though there haven’t been major grievances about significant amounts being withheld. Etsy’s terms stipulate a standard fraud prevention policy, which can include holding funds in a reserve account for up to 180 days or to offset costs from chargebacks.

Higher-Than-Average Pricing

Etsy’s rates, at 3% plus $0.25 per transaction, are marginally higher than many competitors and traditional merchant accounts. This rate also applies to integrated PayPal payments, which may exceed PayPal’s own transaction fees. Despite its basic rate of 3% plus $0.25 and a general per-transaction fee of 5%, Etsy Payments doesn’t typically offer cost savings compared to other options or faster deposit times. However, the platform has received relatively few complaints regarding its payment services. Considering the overall neutral to positive feedback from merchants, a “B” rating seems fitting for Etsy in this aspect.

Etsy Payments 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

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.

Our Etsy Payments Review Summary

Our Final Thoughts

Etsy Payments rates as an average option for e-commerce merchants who wish to accept credit cards online. The service imposes a transaction fee of 3% plus $0.25 per sale, a rate that is marginally higher than most of its competitors. Moreover, it offers a weekly deposit schedule instead of next-day deposits, which might present challenges for some sellers. However, Etsy Payments is currently the only option available for merchants operating on the Etsy platform.

Etsy merchants are encouraged to explore and compare all e-commerce merchant account options available before committing to Etsy Payments. While it may be the default choice, understanding the costs and features will ensure an informed decision that aligns with their business needs.

Location and Ownership

Etsy is headquartered at 117 Adams St, Brooklyn, New York 11201. Josh Silverman is the CEO of Etsy.

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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 Payments Treat You?

1 User Reviews

  • Damian Cindy

    I can’t say enough good things about Etsy Payments! As a small business owner on Etsy, it has revolutionized my online shop. With seamless transactions and secure payment processing, I can now focus on what truly matters – crafting and connecting with customers.

    The easy setup process made integrating Etsy Payments a breeze, and I immediately noticed a boost in sales. It’s fantastic to see my customers trust the platform and enjoy a smooth checkout experience. Plus, the ability to accept various payment methods caters to a wider audience.

    I particularly appreciate the timely payouts, which have improved my cash flow and allowed me to reinvest in my business. Etsy Payments also provides invaluable insights through detailed reports, aiding in better decision-making.

    In conclusion, Etsy Payments is the way to go for any Etsy seller looking to streamline their operations and enhance customer satisfaction. I’m thrilled with the results, and my business is thriving because of it!

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