Etsy Payments, A Simple Review
So, you are considering Etsy Payments.
You’ll be wondering if it’s a good choice for you, if its feature set compares well to other options on the market, and if it is priced affordably enough for what you get.
This article will break all that down for you and more.
Plus, at the end of the article you’ll find links to alternatives to Etsy Payments as well as our top picks for the options in this category.
Or, just go straight to Our top picks for Best Payment Processing Companies
Without further ado, let’s get started.
Etsy Payments Features
Etsy Payments is designed to make life easier for both buyers and sellers on Etsy. With its array of features, it ensures that transactions are smooth, secure, and convenient, allowing sellers to focus on what they do best—creating and selling unique products. Let’s dive into the standout features of Etsy Payments that make it a top choice for sellers worldwide.
Preferred Payment Methods for Buyers
One of the most compelling features of Etsy Payments is the flexibility it offers to buyers. Shoppers can pay using their preferred methods, including credit and debit cards, PayPal, Apple Pay, Google Pay, and Etsy Gift Cards. This variety of options makes the shopping experience seamless and convenient, encouraging more purchases. In fact, sellers who switched to Etsy Payments reported a 7% increase in sales. With multiple payment methods available, buyers are more likely to complete their transactions, leading to higher sales for sellers.
Simplified Financial Management
Etsy Payments simplifies financial management for sellers by consolidating all sales into a single, easy-to-manage account. Sellers receive their earnings directly in their local currency, eliminating the hassle of currency conversions. For those in regions where Etsy Payments operates through Payoneer, funds are deposited into their Payoneer accounts. This streamlined process ensures that sellers can focus more on their business and less on managing complex financial transactions.
Seller Protection and Security
Etsy understands the importance of security and trust in online transactions. With Etsy Payments, sellers benefit from Etsy Purchase Protection, which safeguards their earnings in case something goes wrong with a qualifying order. Additionally, Etsy’s payment and fraud specialists work around the clock to monitor transactions and protect sellers from fraudulent activities. This robust protection ensures that sellers can operate with peace of mind, knowing their business is secure.
Easy Scheduling of Deposits
Managing cash flow is crucial for any business, and Etsy Payments makes it easy with flexible deposit scheduling. Sellers can choose their preferred deposit schedule—most opt for weekly deposits. This regular income stream helps sellers manage their finances effectively. Once a sale is made, Etsy processes the payment and sends the funds to the seller’s Payment Account within a day. For new sellers, there’s a slightly different schedule, but the process remains straightforward and efficient.
Seamless Integration with Etsy Shop
Setting up Etsy Payments is a breeze. Sellers can enroll by navigating to Shop Manager > Finances > Payment settings. The setup requires basic information such as a credit card, bank account, and residential address. Sellers also need to verify their identity, a process that takes less than 10 minutes. Once set up, Etsy Payments integrates seamlessly with the seller’s shop, ensuring that all transactions are managed from a single platform.
Global Reach with Local Convenience
Etsy Payments supports sellers from various countries, allowing them to reach a global audience while receiving payments in their local currency. This feature is particularly beneficial for international sellers who can avoid the hassle and costs associated with currency conversion. Etsy is continually expanding its payment services to more countries, broadening the market for sellers worldwide.
Powerful Seller Tools
Etsy Payments comes with a suite of tools designed to help sellers manage their business effectively. From handling refunds and chargebacks to monitoring transactions, Etsy Payments provides all the necessary tools within the Etsy platform. The built-in dispute tool allows sellers to quickly respond to and resolve chargebacks, ensuring that issues are handled promptly and efficiently.
Enhanced Buyer Experience
A smooth and efficient checkout process is crucial for converting visitors into buyers. Etsy Payments enhances the buyer experience by offering a streamlined checkout process that supports multiple payment methods. This not only makes it easier for buyers to complete their purchases but also reduces cart abandonment rates, leading to increased sales for sellers.
Etsy Payments is a comprehensive payment solution that offers flexibility, security, and convenience. By providing multiple payment options, simplifying financial management, and ensuring robust security, Etsy Payments empowers sellers to focus on growing their business. Whether you’re a seasoned Etsy seller or just starting, Etsy Payments offers the tools and features you need to succeed in the competitive world of online selling.
Etsy Payments Pricing
Etsy Payments offers a straightforward pricing structure designed to keep things simple for sellers. Here’s a detailed look at the costs associated with using Etsy Payments in the United States.
Payment Processing Fees
For every transaction processed through Etsy Payments, sellers are charged a payment processing fee of 3% of the transaction amount plus a flat fee of $0.25. This fee applies to all credit and debit card transactions, including those made through popular digital wallets like Apple Pay and Google Pay. For example, if you sell an item for $100, the processing fee would be $3.25 (3% of $100 + $0.25).
Tap to Pay Transactions
If you’re utilizing Tap to Pay on iPhone or Android, the fee is slightly lower, coming in at 2.6% of the transaction amount plus $0.20. This option is great for sellers who frequently handle in-person sales and want to provide a seamless, contactless payment experience for their customers.
Point of Sale (POS) Transactions
Etsy Payments also supports Point of Sale (POS) transactions with competitive fees. For sales made through Wix Payments POS, the fee is 2.6% of the transaction amount with no additional flat fee. This makes it a cost-effective option for sellers with physical storefronts or those who attend craft fairs and markets.
Manual Card Entry
For manually entered card payments, such as orders taken over the phone, the fee is 3.5% of the transaction amount plus $0.30. This higher rate reflects the increased risk and processing requirements for manually keyed-in transactions.
Refunds and Chargebacks
If you need to issue a refund, Etsy Payments makes it straightforward. The original processing fee is not refunded, but no additional refund fees are charged. For example, if you refund a $100 transaction, you won’t get back the $3.25 processing fee, but you also won’t incur any extra charges for processing the refund. In case of chargebacks, a fee of $15 may apply.
Afterpay and Affirm
For transactions processed through Afterpay or Affirm, which are buy-now-pay-later services, the fee is 6% of the transaction amount plus $0.30. These services allow your customers to pay in installments, potentially increasing your sales by offering more flexible payment options.
Etsy Payments provides a range of pricing options to suit various transaction types, ensuring that sellers can choose the method that best fits their business model. With transparent fees and no hidden costs, managing your finances becomes simpler, allowing you to focus on growing your Etsy shop.
Etsy Payments Discounts and Coupons
Etsy Payments doesn’t offer traditional discounts or coupons for using their service. However, the straightforward fee structure ensures you know exactly what to expect, with no hidden costs. Occasionally, Etsy may offer promotions or lower fees for new sellers, so keep an eye on your seller dashboard for updates.
Etsy Payments Free Trial
Etsy Payments doesn’t provide a traditional free trial. However, setting up Etsy Payments is free, and you only incur fees when you make a sale, making it a risk-free way to start accepting payments.
Etsy Payments, A Short How-To Guide
Etsy Payments is your go-to solution for handling financial transactions on the platform, offering a hassle-free, secure method to manage your sales proceeds. Whether you’re new to Etsy or an experienced seller, this guide will help you set up and use Etsy Payments with ease.
Step 1: Schedule Your Deposits
First, you need to decide how often you want to receive your earnings. Go to your shop manager and set your deposit schedule. Most sellers opt for weekly payments, but you can choose daily, bi-weekly, or monthly depending on what works best for your business.
Step 2: Complete Your Etsy Payments Setup
Ensure your Etsy Payments account is fully set up by providing all necessary information. This includes your bank account details, residential address, and verifying your identity. Accurate information is crucial for smooth transactions and timely deposits.
Step 3: List Your Products and Set Up Your Shop
If you haven’t already, list your products on Etsy and complete your shop setup. Add clear, detailed descriptions and high-quality photos to attract buyers. Make sure to update your shop policies, including terms and conditions, return policies, and shipping information.
Step 4: Optimize Your Checkout Flow
Test your checkout process to ensure it’s seamless. Go through the purchasing steps as if you were a customer to check for any issues. This helps in identifying potential problems and ensuring a smooth buying experience for your customers.
Step 5: Securely Process Your Sales
Once a customer makes a purchase, Etsy Payments will process the transaction securely. Typically, funds are transferred to your Payment Account within a day. This is especially important for new sellers, as the initial sales might have a slightly different schedule.
Step 6: Manage Your Sales and Earnings
Monitor your sales and earnings through the Payment Account section of your Etsy dashboard. Here, you can track completed transactions, pending deposits, and any fees deducted. This feature provides a clear overview of your financials and helps in managing your cash flow effectively.
Step 7: Handle Refunds and Disputes
If necessary, manage refunds and disputes through your Etsy Payments account. Etsy’s built-in tools allow you to handle these situations smoothly. If you issue a refund, the payment processing fee will be credited proportionally to the refund amount.
Step 8: Get Paid
Depending on your chosen schedule, Etsy will transfer your earnings to your bank account. For weekly deposits, payments are typically sent every Monday and take 2-3 days to appear in your bank account. Make sure to regularly check your bank account to confirm the deposits.
Step 9: Keep Your Account Updated
Regularly update your account information to ensure there are no disruptions in your payments. This includes keeping your bank details and residential address current. An accurate and up-to-date account ensures smooth transactions and timely deposits.
By following these steps, you can efficiently manage your sales and earnings on Etsy, ensuring a smooth and secure transaction process for both you and your customers.
What Payment Processing would you recommend?
In short, It’s Stax Payments.com
Stripe Payments is reliable and easy to use, with strong security and seamless integration across platforms. It’s ideal for global businesses, though slightly higher fees are offset by excellent features and customer support.
“🚀Try Stax Payments.com For Free, It’s my favorite payment processing to use and recommend.” -Scott Max
Stripe Payments is secure, user-friendly, and integrates seamlessly with various platforms. It supports multiple currencies for global transactions, offers a clear and intuitive dashboard, and features a developer-friendly API for easy customisation. While the fees are slightly higher, its robust features and excellent customer support make it a strong choice for businesses.
For more details, read our Stax Payments Review.