1. APPLICABILITY:
This India Payment Terms Addendum (“India Payment Terms”) is a legally binding contract between you and Etsy and sets out your rights and responsibilities when you make payments on the Platforms (defined below) for the services provided by Etsy or receive payments for sales concluded on the Platforms. By using the payment facilities on the Platforms, you are agreeing to the terms and conditions set out in these India Payment Terms.
Capitalised terms used herein but not defined, shall have the meaning ascribed to them in the Etsy Payments Policy (or the “Policy”). Where this India Payment Terms is silent regarding any matters covered in the Policy that apply to you, the Policy shall continue to apply to you, where matters covered by the Policy are covered by the terms in this India Payment Terms, the Policy shall apply mutatis mutandis, unless those terms have been specifically excluded in this India Payment Terms, or where, owing to conflict of laws, the terms specified in the Policy are unenforceable against you, or inapplicable to you.
The domain name www.etsy.com, including the related mobile site and mobile applications, and other services, (we’ll refer to these as “Platforms”) are owned and operated by Etsy Ireland UC, a subsidiary of Etsy Inc., a company incorporated under the laws of Ireland and operating in India as a registered foreign company, with Foreign Company Registration Number F06698.
Etsy Ireland UC, a subsidiary of Etsy, Inc. (we’ll refer to Etsy Ireland UC as “Etsy”) allows buyers and sellers to use various forms of payment methods on the Platforms.
For the purpose of these India Payment Terms, wherever the context so requires, ‘you’ and ‘your’ shall relate to any natural or legal person domiciled within India, who has agreed to become a seller on the Platforms by providing registration data while registering on the Platforms using computer systems. The word ‘user’ shall collectively imply a seller, a buyer, and any visitor on the Platforms and the terms ‘we’, ‘us’ and ‘our’ shall mean Etsy.
By use of the Platforms you shall be contracting with Etsy, and these terms and conditions including applicable policies, and Terms of Use, constitute your binding obligations to Etsy, for access to, or usage of the Platforms. Your use of the Platforms and the features therein is governed by the Terms of Use as well as applicable policies available on the Platforms.
We reserve the right, at our sole discretion, to change, modify, add, or remove portions of this India Payment Terms at any time. We shall notify you through any of the communication modes as mentioned in this India Payment Terms in case of any changes or updates to this India Payment Terms that materially impact your use of the Platforms. Your continued use of the Platforms following the changes or updates to the Policy or this India Payment Terms shall mean that you accept and agree to the revisions. As long as you comply with these India Payment Terms, we shall grant you a non-exclusive, non-transferable, and limited right to enter and use the Platforms as well as the Payment Facility (defined below) for the sale of items you list on Etsy’s Platforms.
By an implied or express acceptance of this India Payment Terms, you also accept and agree to be bound by all of Etsy’s policies applicable to you, as amended, from time to time.
2. PAYMENT METHODS & USE OF THIRD PARTY PAYMENT SERVICES:
1. Exclusion of Etsy Payments
Please note that Etsy Payments is not available in India and Etsy provides a payment facility to its sellers and buyers in India as per Section 2 of these India Payment Terms. Therefore, it is clarified for the sake of abundant caution that all provisions relating to Etsy Payments, Etsy Coupons, Etsy Credits, and Etsy Giftcards shall NOT apply to users in India unless expressly included within this India Payment Terms, and shall apply only on and from the date of their inclusion in this Addendum which shall be specified herein.
2. Domestic Payments
Etsy has engaged Razorpay Software Private Limited (Razorpay) a payment aggregator and Payment System Operator authorised by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 ("PSSA”) to perform services related to payment processing, including card processing, disbursements, chargebacks, and other associated services (Payment Facility). For transactions on the Platforms between sellers and buyers located in India, buyer shall make the payment of the total order amount made on the Platforms, through Razorpay, which shall be reflected on the seller’s dashboard provided by Etsy. Razorpay shall deduct the Commissions payable to Etsy, comprising of service charges, subscription fees, advertisement fees, as applicable, as set out in Section 8 of these India Payment Terms and the Etsy Fees & Payments Policy, and transfer the net amount (Transaction Amount) to your bank account in India. It is hereby clarified for the sake of abundant caution that Etsy does not handle funds, nor engage in payment or settlement activities which would require it to obtain any authorisation from the Reserve Bank of India under the PSSA. All fund flows are managed by Razorpay and paid out via bank(s) or regulated entities which are duly authorised to implement and effect the pay-outs.
The Payment Facility has been offered to Indian sellers who are selling products domestically (i.e. to buyers located in India) on the Platforms in accordance with the framework agreement entered into between Etsy and Razorpay. However, your relationship with Razorpay is independent of Etsy and shall be governed by Razorpay’s Terms and Conditions.
You hereby agree and acknowledge that by using the Payment Facility offered by Razorpay on Etsy, Etsy shall not be responsible for or assume any liability whatsoever in respect of any loss or damage arising directly or indirectly to you, due to your use of the Payment Facility.
Transactions, transaction price and all commercial terms such as delivery, dispatch of products and/or services are as per principal to principal bipartite contractual obligations between buyer and seller and the Payment Facility is merely used by the buyer and seller to facilitate the completion of the transaction. Use of the Payment Facility shall not render Etsy or Razorpay liable or responsible for the non-delivery, non-receipt, non-payment, damage, breach of representations and warranties, non-provision of after sales or warranty services or fraud as regards the products and /or services listed on Etsy. You also agree that any grievances with respect to use of the Payment Facility shall be directed to Razorpay and shall be resolved per the mechanism(s) stipulated by Razorpay per Razorpay’s Terms and Conditions.
Etsy has engaged third-party service providers to perform many of the services related to payment processing, including card processing, disbursements, currency exchange, identity verification, fraud analysis, and regulatory compliance. By using a third-party service, you may also be subject to an agreement or terms of use which you enter into with the third party. If Etsy receives notice that your shop's content or activity violates a third party's service agreement, we may at our sole discretion take action against your account to comply with their policies. Such actions may include cancelling a transaction, disabling listings from your shop, suspending, or terminating your selling privileges, or removing certain payment methods.
3. SELLER’S RIGHTS AND RESPONSIBILITIES
Razorpay Virtual Accounts: As a seller on Etsy, you agree to provide accurate personal information as requested during registration with Etsy and Razorpay. You are responsible for maintaining and updating that information as necessary to keep this information accurate and updated. You agree not to impersonate any person or use any name you are not legally authorised to use. You also authorise us, and our authorised agents, to verify their information (at registration and on occasion when using the Services) by accessing public records and obtaining credit reports about the sellers on our Platform. Razorpay and Etsy may verify any sellers’ information in order to safeguard the integrity of the marketplace and reduce the risk of fraud, money laundering, terrorist financing, and the violation of trade sanctions and you agree to extend your cooperation for any such efforts.
Transactional & Payment Disputes: You agree to resolve any disputes directly with a buyer or Razorpay as the case may be, or with the assistance of the dispute management and refund tools available on Etsy, and in accordance with our India Payment Terms and Terms of Use. In the event that a dispute is escalated to Etsy’s Support Team, Etsy reserves the right to issue a refund to a buyer and recoup such funds from the seller if a transaction is found to be in violation of Etsy’s policies. In the event that a buyer submits a charge-back, you authorise Etsy and Razorpay severally, to respond to the credit card networks on behalf of the seller involved in the transaction; the seller agrees to provide any requested information to us within five calendar days of the request. Etsy and Razorpay reserve the right to recoup funds associated with buyer charge-backs from the seller.
Disputes with Etsy: Any non-contractual obligations or any claim or dispute that may arise out of or relate to these India Payment Terms including, but not limited to its execution and performance shall be governed by and construed in accordance with the laws of India without regard to its choice of law provisions. Any dispute arising out of, or in connection with these India Payment Terms, including any question regarding its existence, validity or termination, which is not resolved by amicable settlement between the Parties within 15 (fifteen) business days of its occurrence (or such longer period agreed to in writing by the Parties), shall be exclusively and finally resolved by arbitration, administered by the Delhi International Arbitration Centre in accordance with the Delhi International Arbitration Centre (Arbitration Proceedings) Rules, 2018 (Arbitration Rules) of the Delhi International Arbitration Centre, for the time being in force, which are deemed to be incorporated herein by reference. The Parties shall mutually appoint a sole arbitrator. The seat and venue of arbitration shall be New Delhi, and the arbitration proceedings shall be conducted in English. The arbitration award shall be final and binding on the Parties. The Parties shall bear the respective costs incurred by them in connection to such arbitration including any attorney fees unless the arbitral tribunal rules to the contrary. Each Party shall cooperate in good faith to expedite (to the maximum extent practicable) the conduct of any arbitral proceedings commenced under these India Payment Terms. The decision of the arbitral tribunal shall be binding and conclusive upon the Parties and may be enforced in any court of competent jurisdiction. Neither the existence of any dispute nor the fact that any arbitration is pending hereunder shall relieve any of the Parties of their respective obligations under these India Payment Terms.
Governing Law and Jurisdiction: These India Payment Terms shall be governed by, construed and enforced in accordance with the laws of India. Subject to the clause above, the Parties agree to submit themselves to the exclusive jurisdiction of the courts of New Delhi, India.
Prohibited Items & Listings: You shall list item(s) for sale on the Platforms in accordance with Razorpay’s Terms and Conditions and Etsy House Rules, including Etsy’s Terms of Use and Prohibited Items Policy. You must be permitted to sell the item(s) you list for sale on our Platforms and must have all the necessary licences and permits required for such sale.
Tax: In case of India, you shall ensure full compliance with the provisions of Integrated Goods and Services Tax (“IGST"), Central Goods and Services Tax (“CGST”) and Union Territory Goods and Services Tax (“UTGST”) or State Goods and Services Tax (“SGST”) in respect of the goods/services supplied by seller. It is your responsibility as the seller to charge appropriate goods and services taxes on the supplies effected and ensure remittance of the IGST, CGST and/UTGST or SGST to the relevant government. Etsy shall not be responsible for any deficiency and/ or omission on your part to charge applicable taxes unless Etsy is required by applicable law to collect tax on your behalf.
As a seller on our Platforms, you shall also be required to provide a GSTIN and apply GST under the reverse charge mechanism based on the invoice raised to you.,. In the event that you do not provide a seller GSTIN number, Etsy shall charge GST to you in the invoice raised and shall, at its discretion, block your account and notify you of the block on your account. If a block is placed on your accounts, your orders shall not be processed via your account until such time as you provide a GSTIN number. In the event you provide an Input Service Distributor Registration Number, Etsy shall issue an invoice to the Input Service Distributor Registration Number as furnished by you, and it shall be your responsibility to undertake the necessary compliance required in respect of the said Input Service Distributor Registration Number. In the absence of a seller GSTIN number, you also agree and acknowledge that you will not be able to claim the credit of tax collected at source by Etsy under the Central Goods and Services Tax Act, 2017 and Etsy shall not be responsible in any circumstances not attributable to Etsy's negligence, for your inability to claim of tax collected at source.
We will withhold taxes at source as required by the The Income Tax Act, 1961, where applicable and you may be required to supply your Permanent Account Number (“PAN”) and such other documents as required to enable Etsy to withhold and pay taxes deductible at source. We will also, in accordance to the tax collection at source provisions under the Central Goods and Services Tax Act, 2017 will collect tax at source at applicable rates on the value of those taxable services and supply of goods made through the Platform and remit it to the appropriate government, and you shall be required to supply your GSTIN. In case of any mismatches on account of tax collection at source, you shall be required to provide all relevant information to Etsy to correspond with the relevant authorities and also in case of any liability accruing on account of omission shall be your obligation to pay such deficit. You shall be required to provide the corresponding Harmonised System Nomenclature (HSN) code number for every product listing. In the event that you do not provide the HSN code number that particular product shall be delisted and you shall no longer be able to sell the product on the Platforms.
4. RIGHTS AND OBLIGATIONS
We do not mandate that any seller products should be sold exclusively on the Platforms and Etsy waives any obligation on You to sell exclusively on the Platforms.
The Payment Facility may be made available, modified, or discontinued by us at any time without notice and is subject to the limitations in Etsy’s Terms of Use.
Etsy or Razorpay may, as a security measure, may impose transaction limits on buyers and sellers. Such limits may relate to the value of any transaction, deposit, or adjustment, or limits relating to the cumulative value of all transactions, deposits, or adjustments during a period of time. Etsy or Razorpay may also impose limits related to the number of transactions per day or other period of time. Etsy or Razorpay shall not be liable to a seller: (a) if we do not proceed with a transaction, deposit, or adjustment that would exceed any limit established by us, or (b) if we permit a buyer to withdraw from a transaction.
Etsy or Razorpay may at its sole and unfettered discretion, refuse service of the Payment Facility at any time.
Etsy or Razorpay reserve the right to decline or refund transactions that Etsy or Razorpay respectively, believe to be high risk, fraudulent, in violation of trade sanctions, or otherwise in violation of Etsy or Razorpay’s respective Terms of Use.
Etsy shall maintain a record of all the transactions (completed, in progress, etc.) of the sellers and buyers as permitted under applicable laws. Etsy’s Privacy Policy further explains how Etsy handles user information. Etsy shall send you any relevant notices regarding your use of the Payment Facility in accordance with our Electronic Communications Policy and the Razorpay Terms and Conditions.
If Etsy receives notice that your shop's content or activity violates a third party's service agreement, we may at our sole discretion take action against your account to comply with their policies. Such actions may include cancelling a transaction, disabling listings from your shop, suspending, or terminating your selling privileges, or removing certain payment methods.
5. REFUNDS AND CHARGEBACKS
Upon receipt of a refund request from the buyer for payment made through Razorpay, and in accordance with the Etsy Terms of Use, Etsy may initiate partial or full refund of the amount paid by the buyer through Razorpay. In the event of a full refund, the Commission deducted by Etsy shall be readjusted prior to refund to the buyer.
In the event that a buyer submits a charge-back, Razorpay shall respond to the credit card networks on behalf of the seller involved in the transaction; the seller agrees to provide any requested information to us within five calendar days of the request. Etsy reserves the right to recoup funds associated with buyer charge-backs from the seller in association with Razorpay.
6. DEPOSIT
Razorpay Virtual Account: All funds resulting from a completed transaction shall be reflected as a balance in a seller’s Razorpay Virtual Account with Razorpay (“Razorpay Virtual Account”). Transactions are considered complete at the later of once the payment is approved by Etsy or our fraud analysis service provider. Any refunds, adjustments, or other amounts paid to buyers in connection with purchases, or for funds received since the last payment day, are also applied to the seller’s Razorpay Virtual Account balance. Funds displayed in a seller’s Razorpay Virtual Account balance are eligible for deposit (the “Available Funds”) into a seller’s bank account, subject to any applicable reserve(s) and corresponding reserve limit, hold, or deposit delay, as described in Section [6.2]. Reserves; Holds and Delays below, and as otherwise determined by the seller’s bank.
Reserves, Holds and Delays: To protect the security and integrity of our marketplace, the users of the Etsy services, and Etsy, Etsy may take account-level or transaction-level actions based on risk-based criteria, like the criteria listed below. Some of our decisions about reserves, holds and delays may be based on criteria that demonstrate a seller’s ability to fulfil orders in a manner consistent with Etsy’s policies. These criteria are essential to our management of risk and the protection of Etsy and our users. Etsy reserves the right to use a combination of reserves, deposit delays, and holds on your account in accordance with Section 7B of the Policy.
Holds and Delays: In some cases, deposits to a seller's bank accounts could be temporarily delayed by technical issues at Razorpay, or its third-party service providers, or a seller’s bank, which shall be dealt with in accordance with Razorpay’s Terms of Use. Where we believe that a seller's actions may result in buyer disputes, charge-backs, increased risk of fraud, counterfeiting, or other claims, then we may, and in our sole discretion, put a hold or deposit delay on the seller’s Razorpay Virtual Account balance. A hold may be put on funds associated with a particular transaction if there is a dispute or investigation related to the order, for the shorter of: (a) 120 days after the estimated delivery date, or (b) completion of any investigation regarding the seller’s actions. Deposit delays are defined as the number of days between a sale and the day the net amount from the sale becomes available for deposit, provided the payment has been completed. A deposit delay may be between 0 and 120 days. A deposit delay is applied across all transactions for a seller and the number of days is reflected in each seller’s Razorpay Virtual Account.
Intimation of Holds and Delays: If Razorpay places a hold or deposit delay on a seller’s account, Etsy shall on a best efforts basis communicate with the affected seller as appropriate as soon as we can. We always work hard to avoid and minimize any delays. However, please note that Etsy is not obligated to refund any fees or reimburse any expenses due to holds or delayed deposits.
The Payment Date shall generally fall on Thursdays. With respect to sales made prior to the Monday of a given week, the Payment Date shall fall on the next Thursday (i.e. Thursday of the same business week). For sales made after Monday on a given week, the Payment Date shall be the Thursday of the following week, if the scheduled Payment Date falls on a non-business day. If a seller elects to change the frequency of disbursements, the following deposit shall be initiated on the next business day if the seller selects daily disbursements, or on the next applicable Monday if the seller selects weekly, fortnightly, or monthly disbursements. When a seller either initially provides or later changes their bank account information, the seller must wait at least 7 (seven) calendar days to request a deposit into a bank account as a security precaution. The next scheduled deposit after a change to bank account information shall occur on the next applicable Payment Date after a period of 7 (seven) calendar days from the date of the requested change.
7. RECOUPMENT
Razorpay reserves the right to seek reimbursement from a seller in any of the following circumstances: (a) where Etsy provides a refund to a buyer because a seller did not promptly deliver the goods or Etsy otherwise determines, consistent with the Seller Rights and Responsibilities section of the Policy, that a refund is warranted in a particular circumstance, (b) Etsy or Razorpay discover erroneous or duplicate transactions related to a specific seller, (c) Razorpay receives a charge-back from a buyer's credit card issuer or reversal of payment for the amount of a buyer's purchase from a seller, or (d) a seller does not act in accordance with Etsy’s policies.
We may obtain reimbursement of any amounts owed by a seller to Etsy by deducting from future payments owed to the seller, reversing any credits to the seller’s Razorpay Virtual Account balance, charging the seller's payment method on file, charging the seller’s Razorpay Virtual Account, or seeking reimbursement from the seller by any other lawful means, including by using third-party collections services. You authorise us to use any or all of the foregoing methods to seek reimbursement. Etsy may suspend your selling privileges at any time pending payment of your outstanding balance.
8. COLLECTION FEE:
Etsy shall have the right to instruct Razorpay to deduct Commissions, which shall be deducted for the provisions of services at the following rates:
- Collection Fee, charged on each transaction: 3% +10 INR; and
- Applicable fees charged by Etsy, as described in the Etsy Fees & Payments Policy.
For the purpose of this Section 8, in India, Razorpay shall deduct from the transaction amount, for and on behalf of Etsy, commission, service fees, advertising fees, subscription fee, and any other charges as the case may be before such amount is disbursed to the seller’s bank account by Razorpay.
The currency for all domestic payments made on Etsy in India shall be in Indian Rupees. In addition to the Commissions, Razorpay shall be entitled to deduct any applicable service fees before making disbursals to the seller’s bank account on file.
9. DISCLAIMERS
Transactions, transaction price and all commercial terms such as delivery, dispatch of products and/or services are as per principal to principal bipartite contractual obligations between buyer and seller and payment facility is merely used by the buyer and seller to facilitate the completion of the transaction. Use of the Payment Facility shall not render Etsy liable or responsible for the non-delivery, non-receipt, non-payment, damage, breach of representations and warranties, non-provision of after sales or warranty services or fraud as regards the products and /or services listed on Etsy. The sellers agree that any grievances with respect to payments shall be raised as per the mechanism provided by Razorpay.
You have specifically authorized Etsy or its service providers to collect, process, facilitate, and remit payments and/or the transaction price electronically to and from buyers in respect of transactions through payment facility. Your relationship with Etsy is on a principal to principal basis and by accepting this India Payment Terms, you agree that Etsy is an independent contractor for all purposes and does not have control of or liability for the products or services that are listed on the Platforms and paid for by using the Payment Facility.
You understand, accept, and agree that the Payment Facility provided by Razorpay is neither a banking nor financial service, but merely a facilitator providing an electronic, automated online electronic payment facility for receiving payment, collection, and remittance for transactions on the Platforms using the existing authorized banking infrastructure and credit card payment gateway network. Neither Etsy nor Razorpay act as a trustee or fiduciary with respect to transaction or transaction price.
All online bank transfers from valid bank accounts are processed by Razorpay using the gateway provided by the respective issuing bank that supports payment facility to provide these services to the users. All such online bank transfers on payment facility are also governed by the terms and conditions agreed to between a seller buyer and the respective issuing bank and Etsy shall in no way be liable for such bank transfers or any liability arising thereof.
10. INDIAN SELLER TERMINATION PROTOCOLS
You agree to dispatch items you sell on the Platforms once a payment transaction is complete and reflected in your dashboard failing which Etsy reserves the discretionary right to terminate your access to the Payment Facility and/or the Platforms.
You may also terminate this contract at any time by adjusting the settings in your account with Etsy. Etsy may also terminate or suspend a seller’s use of Razorpay’s Payment Facility at any time as determined by Etsy in its sole and unfettered discretion.
Upon termination, any non-disputed funds available to you for disbursement (Available Funds), in your Razorpay Virtual Account shall be deposited into your bank account. Etsy reserves the right, upon termination of access to Etsy’s Platforms and Payment Facility, to set off against any payments to be made to the seller, an amount determined by us to be adequate to cover any anticipated charge-backs, refunds, adjustments, or other amounts that might be paid to buyers in connection with purchases from the seller's Razorpay Virtual Account for a prospective 120-day period. At the end of the 120-day period following termination, we shall disburse to the seller any amount not used to offset charge-backs, refunds, adjustments, or such other amounts paid to buyers, or seek reimbursement from the seller via any of the means authorised in this India Payment Terms for any additional amount required to offset charge-backs, refunds, adjustments, or other amounts paid to buyers, as applicable.
11. CONTACT US
Please send any comments or questions, including all enquiries not related to trademark and copyright infringement, by contacting Etsy as described here.
The grievance officer for any disputes arising out of the use of the Platforms (including but not limited to those relating to this Policy) can be contacted through this Help Center article.
Last updated on 08 Jun, 2022