Etsy Payments Review: Fees, Comparisons, Complaints, & Lawsuits
(718) 855-7955 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
Key Points |
|
|---|---|
| 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
Key Points |
|
|---|---|
| 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 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
There are a few complaints about fund holds and deposit waits in the Etsy user forums. It seems that there is an initial delay of three days for each deposit upon a merchant’s initial signup, and then funds become available for next-day deposit if necessary. There are also reports from some concerned merchants about Etsy’s fund holding policy, but we have not found any detailed complaints that mention a significant amount withheld. Etsy’s terms of use outline a fairly standard fraud prevention policy that allows the company to hold funds in a reserve account for up to 180 days or to recover costs associated with chargebacks from the merchant.
Higher-Than-Average Pricing
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?
Key Points |
|
|---|---|
| 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
An Average Option With No Available Alternative
Etsy Payments rates as an average option for e-commerce merchants who want to accept credit cards online. The service charges a fee of 3% plus $0.25 per transaction, which is slightly more than most of its competitors, and it has a weekly deposit schedule rather than next-day deposits. However, there is no other option available for Etsy users with e-commerce stores. Etsy merchants are encouraged to consider all possible e-commerce merchant account options before selecting Etsy Payments.
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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!