No Payment Processing Agreement
Etsy no longer processes payments for in-store or online purchases. Instead, it requires its users to integrate their Etsy accounts with Square and PayPal accounts. This means that there are no distinct merchant account terms enforced by Etsy itself.
Previous Sell on Etsy Pricing
Sell on Etsy’s card reader charged 2.75% for swiped payments and 3% plus $0.25 for keyed-in payments. Neither swiped nor keyed-in payments through the app were subject to Etsy’s standard 3.5% transaction fee, making this form of payment much cheaper than online sales for Etsy merchants. Sell on Etsy also did not include any monthly, annual, or cancellation fees.
Etsy Direct Checkout Contract Terms
The Sell on Etsy app required the setup of an Etsy Direct Checkout account (also a discontinued service), so merchants also needed to be familiar with the terms of Etsy Direct Checkout. The only complaints related to Etsy Direct Checkout’s contract terms were concerns about its pricing and fund holds. Etsy Direct Checkout imposed an initial delay of three days for each deposit upon a merchant’s initial signup, but funds became available for next-day deposit after ten days. Etsy Direct Checkout’s terms of use also outlined a fairly standard fraud prevention policy that allowed the company to hold flagged funds in a reserve account for up to 180 days or to recover costs associated with chargebacks from the merchant.
A Standard Mobile Option
Etsy’s swipe rate of 2.75% was identical to that of Square, and its keyed-in rate was only slightly better than Square’s rate of 3.5% plus $0.15. The company’s basic transaction fee of 3.5% did not apply to offline payments, so Etsy merchants could possibly have saved some money by using the Sell on Etsy app and reader instead of a third-party processor. However, Etsy’s mobile service never really competed with top-rated mobile credit card processing apps.
