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How does Direct Checkout go negative?

I signed up for direct checkout and I am actually very curious to know how it can go negative? It says I have to have a credit card on file so it can be charged in case it goes negative.

When I signed up for direct checkout, I was under the impression that all I would have to do would be verify two small deposits in my account. I don't mind that, but today I noticed I also have to put an active credit card on file in order to receive money for an order.

So, my question is how would it go negative? And if for whatever reason it goes negative, how come it could not just come from my bank or be tacked onto my Etsy bill?

So right now, I have an order from my shop sitting in the limbo of direct checkout. I don't have a credit card or even a debit card. Does this mean I can never get my money and just need to write it off as a loss? If so, I am going to be sad. And a bit more broke than usual.

21 Responses

I think if you get a payment in your bank from etsy, then the customer needs a refund. I though it would refund from your creditcard, but I could be wrong.
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Inactive Etsy Member 2:37 am Jun 12, 2012 EDT
Hm. That's odd. I didn't have to do that. I just verified my bank account.
You do have to verify the bank account but you do have to put in a creditcard on account in case your account goes negative. You cannot get a bank payment until the creditcard is on file
Yes, but what I don't understand is why I have to have another source of income to give to Etsy. I already gave them my bank information, which is all I really have. So now I am kind of stuck. Or at least that is how I feel.

Also, perhaps next time something like this is rolled out, they can wait until the account is confirmed before allowing people to buy things. Because now I just have a sale that happened right after I turned it on BEFORE I saw that I needed a credit card.

This is another not very well thought out idea! I don't think competing w/Paypal is a good idea either. I had one problematic sale w/DC & then shut it off! It can make your item mark itself as shipped. My Coupon Code would not work. Not worth the aggravation!
I know it is 3 a.m.(Central time, anyway) and a lot of people aren't up, but does anyone have a customer service number for the Direct Checkout so I might be able to talk with someone and work out a solution? I know PayPal has a customer service line, so I would think Direct Checkout does, too.
It's for refunds :) If you do a refund and don't have the cash in your DC line.
You are required to have a valid credit card on file because if you issue a refund for payments made with direct checkout, but don't have enough funds available under your Shop Payment Acount, your credit card on file will be charged for the remainder due.

Here's the basics of how direct checkout works

When you signed up for you Etsy shop, you were required to have a credit card on file at that time. Why not just use that same credit card?

Sorry but Etsy does NOT have a customer service phone line. Another drawback of Direct Checkout.
I heard that there is no customer service number! I don't have dc so don't know for sure. But I read people saying they will not get dc until there is a number to call when things go wrong.

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