Essentially, the seller is not allowed to access their payments for three days. Once the allotted time has passed, the seller can place the invoice into a "shipped" status, releasing the funds. This, combined with another 3 days turnaround from our bank, puts payment in our account 6 days after the transaction occurred.
If any other seller is in our situation (creating short turnaround, custom crafted items supplied by limited inventory), this absolutely does not work.
It really is a shame, considering the uptick we saw in sales once the feature was enabled.
Also of note, Etsy should not obfuscate the pay by PayPal option when Direct Checkout is enabled. Adding it as an "alternate method" at the bottom of the checkout page is not the proper way to promote sales. The customer should have multiple checkout methods presented equally, to encourage sales.