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Announcing Direct Checkout

Hi shop owners,

Beginning today, we are rolling out direct checkout. This is a new and optional way for shop owners in the US to accept and manage credit card payments from buyers directly on Etsy. Direct checkout is currently enabled for a limited number of shops, including the EtsyStore:

Direct checkout will allow buyers around the world to use a Visa, MasterCard, American Express, or Discover card during checkout from individual shops - online, on mobile, or on Etsy for iPhone - without being redirected from Etsy. There will be one single line of communication around a direct checkout order, sent through an Etsy email, with all shop information and contact information easily accessible.

As always, it’s up to you as a shop owner to decide which payment methods you accept. Direct checkout is a new and additional option — we currently have no plans to discontinue offering PayPal or other methods now available.

We believe direct checkout will be a quick, straightforward, and most of all, familiar purchase experience.

I’ve been following your comments in the forums around payments for some time, and I know you have questions or concerns about how direct checkout will work. We’ve done our best to add FAQs that address most of your concerns, but I’ll highlight some important questions here.

Q: Who will be able to use direct checkout?

A: Direct checkout will be available to US-based sellers only, at first. However, all buyers who have a Visa, Mastercard, American Express, or Discover will be able to check out, even if they’re outside the US.

Q: How much will direct checkout cost?

A: Direct checkout will cost a 3% + $0.25 USD payment processing fee per sale. This fee will be automatically subtracted at the time of sale. If you need to issue a refund to a buyer, this fee, and your transaction fee, will be credited back to you proportionately. Fully refunded orders are also eligible for cancellation, which refunds your listing fee as well.

Q: Is PayPal going away?

A: As I mentioned, direct checkout is optional for shop owners, and PayPal payments will continue to be managed through PayPal as they have been.

Q: How will buyers know which payment options sellers accept?

A: Check out the video here to see what your buyers will see:

Q: When will money from a sale be available?

A: Your funds will appear in a new area of your shop called the Shop Payment Account and you’ll see your balance from sales made through direct checkout. To have the money available for deposit into your bank account, you’ll need to ship your items and mark them as such from the invoice in your Sold Orders. We’ll deposit funds every Monday, but you’ll be able to schedule earlier deposits of your available money if you want to.

Q: What if you need the money from a sale immediately in order to make the item or ship the item?

A: At this time we do not support that, but know it is a concern and are working on the right solution to make sure we build a process that protects buyers, sellers, and Etsy.

Q: When can you add direct checkout to your shop?

A: We are limiting today’s launch to a small percentage of shops, as we often do with new launches. We’ll be including interested shops over the next few months. If you’re interested in adding direct checkout to your shop, go to and let us know.

Q: How do you continue to use PayPal shipping tools?

A: If you use PayPal shipping tools, you can manually enter order information into PayPal’s multi-order shipping tool. Improving shipping tools is also something we are working on.

Q: How do we plan to ensure sellers are protected from fraudulent buyers?

A: As I mentioned, we’ve built a checkout and seller payment process to fit the unique needs of Etsy as a marketplace and that will protect buyers, sellers, and Etsy. Because Etsy will now have insight into both the buyer and seller side of a transaction, we believe we are in a good position to ensure shops are protected from unnecessary claims or disputes. Etsy screens orders for fraudulent payment, and sellers will only receive an order to be completed if the payment is confirmed and funds are available. We've developed a set of best practices for transactions, which may help avoid or resolve disputes. You can review these best practices in the DOs & DON'Ts:

Q: When will direct checkout be available for international sellers?

A: We know that payment options for international sellers is important to the community and are working on this.

Q: Is there a dedicated customer support team for direct checkout and seller payout processes?

A: Yes, we have a team of dedicated representatives focusing on direct checkout. In certain unique situations, this team will resolve issues via telephone to ensure your needs, as well as buyer needs, are met in a timely manner.

Q: Does direct checkout work on mobile?

A: Yes, direct checkout works on both Etsy for iPhone and the mobile web. App users, both buyers and sellers, should update Etsy for iPhone by clicking on this link:

If you’re curious about more of the details, feel free to browse our FAQ or post your questions in this thread.

36 Highlighted Responses

Kristen Bird from BirdhouseDesigns says

very very curious, in a good way...

Not available for me yet, but I added my name to the list. I am hoping this works like it sounds, so that non-paypal customers will feel more comfortable and less confused when checking out.

I am OK with it being deposited to my bank account. I am curious if instead, we can apply the "balance" to our etsy bill directly?


Thanks for your question Kristen, and thanks for adding your shop to the list! We do expect to eliminate any confusion for our buyers.

At this time we cannot apply direct checkout sales to your bill, you'll only be able to deposit these funds into your bank account. You will still have a bill for your transaction, listing, and any other fees.
Bizzie from BizzieLizzie says

I've signed up to receive, so I'll just have to see how this goes. Once we're signed up - if we choose to not use this feature in the future, can we OPT OUT?

Hi Bizzie, thanks for your question. We definitely invite you to try direct checkout when its available for your shop, and you can opt out at any time just by going to your payment settings in Your Shop. Any outstanding funds we still be deposited into you bank account.
Ana from Ribizla says

This is soo great!! I cant wait for it to be applicable for us, non US sellers, do you have a date for such? A

Hi Ana,
We definitely know that more options for international sellers is something very important to the community. I can't give you a date now, but know that we are working on this.

Lauren Darby from OriginalsbyLauren says

Am I understanding this correctly?
this has nothing to do with my business acct to accept credit cards, etsy accepts the credit cards and deposits the money for us.
Is that right?


Lauren - yes, you've got it!
Faro from OhFaro says

How will you be handling customer service for this feature? Will there be live help for this or will it still be via email?

That is one thing that worries me about this right now. How can you offer this and not offer live phone help? Calling paypal and being on the phone and *discussing* the situation/complication works, very well. I've only had to call paypal over issues a handful of times in 10-11 years of using it, but it was immediate and not stressful at all. I believe phone support is critical when it comes to processing money.

How will etsy support this feature?
Hi Faro,
Thanks for your question. We also know that support is very important when offering any payments product. We now have a dedicated team working on checkout and payment issues, and depending on the issue, phone support is available. We expect to respond to questions in a very timely manner, and our teams are armed with the tools they need to resolve issues in real time - whatever the channel.
Jen Jen Jen from PoleStar says

Will this sync with Outright? I really love that feature with Etsy and Paypal, it's made my life easier.

Hi Jen,
We love Outright too! We are actively working on this to make sure Outright works smoothly with direct checkout.
LittleSparkCreations from LittleSparkCreations says:

As someone mentioned previously, the the new checkout seems to force direct checkout for cc payments.

Hi LittleSparkCreations -
Thanks very much for your comments. Adding direct checkout is completely optional. Sellers who do not add it will continue to see the credit card logos next to PayPal to ensure buyers know they can still pay with a credit card through PayPal.

There are a lot of users who do like this option and we want to leave that for them. However, for those sellers who do add direct checkout, we want to make checkout as simple as possible for their buyers.
Helen Carter from SecretLentil says

It sounds like you can transfer money any time but it will auto-transfer each Monday if you don't. That's how I read that.


Hi Helen,
That's exactly right - thanks very much for your comment. We will auto deposit available funds, but allow earlier deposits if money is available.
Julie from PandJCrafts says

I signed up for this before I thought it through a little more. I just received an e-mail saying it will be available in my shop soon. Will it automatically turn on or will I be able to go in and opt into it?

Hi Julie,
Thanks for adding your shop to the list. Once your shop is enabled, you'll still need to sign up specifically for direct checkout, its not automatic. We'll send you a notification about it, and you'll click through to our sign up process.
Helen Carter from SecretLentil says

Because of Etsy's flat shipping rates a lot of sellers make partial refunds through Paypal. It's easy to do and we are also refunded our percentage of the payment as well.

How will partial refunds work with the new direct pay system?

Hi Helen,
If you need to issue partial refunds for orders made through direct checkout, you'll get both your transaction fee and the payment processing fee credited back to you proportionally. If you fully refund the item, you'll get 100% back. Fully refunded items are also eligible for cancellation, which refunds your listing fee as well.
VivaVera from VivaVera says
"To have the money available for deposit into your bank account, you’ll need to ship your items and mark them as such from the invoice in your Sold Orders."

What happens in the situation where I ship my order, mark it as "shipped", and then the buyers account balance is short?


Hi VivaVera,

Thanks for your question. Once you receive the order and it appears in your Shop Payment Account the money from the buyer has already been confirmed.

Terri from Untwistedsister says

Is there somewhere we can see how the system will work?

- - - - - - -

I see you already found the video!
For all interested:
Hi everyone, I notice quite a few questions around whether sellers are liable for fraudulent purchases. We have posted in our terms of use that once an order is confirmed from Etsy, sellers are not liable for fraud:

"Etsy will bear the risk of credit card fraud (i.e. fraudulent purchase arising from the theft and unauthorized use of a third party's credit card information) occurring in connection with Payment Transactions. In the event Registered Seller is found to be complicit with any credit card fraud, Etsy will not be liable."

I'll post some comments on transaction disputes in a separate comment.
Hi guys,

To answer some of your concerns, please see this post from Camilla:

Helen Carter from SecretLentil says

It sounds like you can transfer money any time but it will auto-transfer each Monday if you don't. That's how I read that.


Camilla Velasquez from millabear says

Hi Helen,
That's exactly right - thanks very much for your comment. We will auto deposit available funds, but allow earlier deposits if money is available.

- - - - - - - - -

If you click on "Show Thread Summary" at the top of every thread page, you'll be able to read Admin replies to many of your concerns. As always, thanks for participating in the discussion and asking questions! We appreciate it :)
Hi everyone,
I've also seen a lot of comments about the pricing: 3% + $.25 per transaction.
I just want to add to the discussion that there are costs associated with offering this type of service on the site. We believe that this fee is therefore fair and competitive, but understand that it isn't ideal for every seller.
Shine Wedding Invitations from shineinvitations says

I may want to signup for the new checkout so I can start testing shipping methods and other management in case this ever becomes mandatory.

In the main thread, the admin said it was optional to sign up. Once you sign up, can you opt out?

I am interesting in trying it out, but want to make sure I am able to turn it off if need be!

- - - - -

Yes! Signing up is optional, and if you do, you can opt out at any time! (Any outstanding funds will still be deposited into you bank account.)
LittleSparkCreations from LittleSparkCreations says
So.... will shops meeting the $20,000 + 200 sales IRS criteria be issued 1099k's for payments going into their "Etsy Shop Account"?


Hi LittleSparkCreations,

Good question - we have an FAQ which explains this:
HI everyone, thank you for the helpful discussion. It's really great to read your feedback.

Regarding customer support, we only moved forward to roll out direct checkout once we knew we had the support infrastructure in place to resolve disputes in a timely fashion. We now have a dedicated support team who are equipped for phone support in certain cases where issues need to be resolved quickly.
Brandy from ThePeacockFeather says
another thing that is going to become QUITE confusing to customers that use direct checkout from one seller and then buy from someone else that is not accepting it and wonder why they can't checkout directly.


Hi Brandy,

Thanks for this comment. We are careful in the shopping cart to show, for each item, the checkout options available to the buyer for the specific shop. We believe that the way we are displaying this will communicate to the buyer the checkout methods available, and help settle any confusion if they are different from seller to seller.

ParisOnSunday from ParisOnSunday says Edited on Feb 7, 2012


Also, I saw that funds will be transferred by etsy on Mondays but can be transferred sooner by the shop owner. Will it be possible to keep funds in a Shop Payment Account as it was with PayPal?



Hi ParisOnSunday,

Thanks for your question. Funds cannot be permanently held in your Shop Payment Account. The available funds will be deposited to your bank account automatically each Monday, or earlier if you schedule an earlier deposit.

Hi -
I also see a lot of comments about shipping tools, labels, etc. I want to let you know that we know this is a concern and that manually entering information is a hassle. I can tell you that we are working on this, and as we roll out direct checkout to interested shops, our shipping tools will continue to improve.
Joanna from gothicreations says

How would returns and refunds be handled? I haven't really read everything yet so sorry if that's been answered.

Hi Joanna,
Shop owners handle their own refunds and returns as they always have. We give you the tools to provide partial and full refunds to buyers and your shop policies will continue to apply.
Sarah from Davs says

Are we going to have to worry about dealing with people's credit card number's or will etsy do all of that for us?

Hi Sarah -
Etsy will handle credit card information and will not share that information with sellers directly. Only confirmed orders are sent through to sellers, with shipping info, contact info, etc.
Amanda Michel from FairyBubbles says


I have more than one Etsy shop. In fact 3, all are tied to the same checking account, and same paypal question is in regards to money transfers
Will there be 3 money transfers into my checking account on Mondays?
Also does it make a difference what kind of checking account it is? (ie my account was set up as what I call my internet account, not my business account, so is my bank gonna have issue with three transfers + coming in a week to a personal account?


Hi Amanda,

Thanks very much for the question about multiple shops. Your Etsy Shop Payment Account is on a shop level, so that means that you will receive separate deposits per shop. We support any checking or savings account that has been opened with a US-based bank. So I don't think you will find any problems with receiving multiple deposits.

Faro from OhFaro says

How long does a buyer have to claim they didn't get the item? I went into the FAQ's and didn't see any terms about a dispute timeframe.

Hi Faro,
I understand the questions regarding a timeline. I also know this is similar to the response I posted earlier, but just to reiterate, we will be managing payments specifically associated with the Etsy marketplace, which allows us to have insight into both buyer and seller side of the transaction, and all aspects of it - this is beneficial when it comes to transaction issues. Every type of transaction on Etsy is unique. Etsy will manage and control for buyer fraud as well as buyers who file disputes erroneously or without merit, while still allowing legitimate issues to come to light.
Ginny Vyvyan from timberlineltd says

I haven't been able to keep up with the pages here and apologize if I missed this. Can we now pay all our sellers from different shops at the same time with one payment?


Hi Ginny,
Checkout will continue to be from individual shops, even if more than one shop accepts direct checkout.
Jenny Miller from JennyMJewels says

If etsy will hold payments for 3 days, if I ship same day or next day, is there a possibility that the payment could be reversed before the 3 days is up, but after I've shipped? My customers are used to fast shipping & if I start holding orders for 3 days I think that could have an impact on my repeat customer business.

Hi Jenny,
No. Once the payment is confirmed by Etsy, only you can cancel or refund a transaction. We screen for buyer fraud and only send you a confirmation once the funds are secured. The only reason a payment would be reversed post sale is in the situation of an escalated dispute.
RareEarth from RareEarth says

Some credit card processors have a transactional limit or monthly limit on the amount you can process. Will there be limits on the amount that can be processed through etsy, either on a per transaction basis or monthly limit?


Hi RareEarth,
There are no transaction limits or monthly limits for direct checkout.
For custom orders, we don't support the ability for prepayment at this time, but again, we know this is a concern for a lot of sellers and hope to find a way to accommodate in a way that works.
Hi all,
The terms of use are posted as part of our existing terms of use, and only apply if you sign up for direct checkout and have it enabled in your shop:
soap from soap says

Is that posted in the actual TOU for the site? Why is it under "help" article?

Hi Soap,
If you click on "Terms" in the footer of this page, you'll see that direct checkout is listed under our existing terms, as part of section 2.
I have seen a few questions regarding PCI compliance. Etsy has been audited and certified as PCI Compliant and that certification is still in effect.

Please refer to this FAQ:

BarnFly from BarnFlyVintage says

Is there a fee for requesting/withdrawing funds before the Monday transfer?

Hi BarnFly,
I apologize for not responding to this earlier. If funds are available from completed orders before the next scheduled deposit on Monday, there is no fee for requesting an earlier deposit.
Thanks for all the input you've given us. We really appreciate hearing how you expect this to affect your business and how you'd like to see it expanded to meet your needs.

We are confident in our ability to support the needs of our community as you opt to use direct checkout. This was created with the intention to simplify a buyer's checkout experience and enable more check out options. As we roll it out to more sellers you're welcome to enable or disable it as it benefits your business and works well for your shop.

As we continue to expand direct checkout we will be watching to see it performs for buyers and sellers alike and working to meet the needs of both. In addition to your input here please also feel free to contact our Support team with specific questions and concerns.

Again, thanks you for your feedback!
Hi all,
I want to thank you for all of your questions and your interest in Etsy's direct checkout. We understand that it feels like a potentially big move for any seller; it's a big move for us! Though I know that more questions are likely to come up as more of you get the chance to use direct checkout either as buyers or as sellers, I would strongly encourage you to contact our Support Team as you think of them. We understand that the product may not be right for everyone.

Q: Is this direct checkout/ payment processing being done solely though Etsy, by Etsy, or is there a financial institution/ payment processor backing this feature?
A: Etsy uses a payment processor, and funds are held in a bank. We do not disclose our providers publicly.

Q: What are the set customer service hours & phone number for this feature?
A: We have a dedicated support team that strives to respond to requests using the appropriate channel within 3-5 hours. Urgent matters or those regarding access to funds will be managed via telephone and within a shorter time frame.

Q: What steps have been taken to ensure that such info we the sellers provide remain confidential & protected?
A: The answer to this can be found here:

Q: How long is this information kept if we close our shop and leave the site?
A: Our data retention policy can be found here:

Q: Do you keep the buyers' cc info on file?
A: Yes, we store a buyer's card information for future purchases. Buyers can remove a card from their profile at any time. More information can be found here:

Q: In regards to funds released 3 days after shipment, many made-to-order/custom order sellers have expressed concern over this.
A: To clarify, we hold funds until the item has been marked as shipped and 3 days from the order has passed. If an item is marked as shipped after 3 days from the order, the money is available for deposit immediately. We do not support access to funds before an item has been marked as shipped at this time. We do understand this is a concern and are determining how to address this. For those sellers who require immediate funds, this may not be the product for them at this time.

Q: Can the autoselect for direct checkout over other payment options be turned off?
A: It is up to the buyer to select the appropriate payment method and direct checkout will remain as the autoselect if a shop has this enabled.

Q: What kind/format of account history reports will be available for sellers to download or review and how much detail will they contain?
A: We are working on CSV downloads of a shop's direct checkout activity and hope to provide these soon.

Q: What happens in the event that a shop is suspended/closed by Admin and the seller cannot access their shop to withdraw any remaining funds?
A: Funds deposits will continue to be scheduled even once a seller's shop is closed, unless the circumstances are such that the holding of money is merited.

I've been happy to see your response here to answer some of your questions, but ultimately I've got to get back to helping our folks on the Payments team as we keep building and improving. Thanks again for reading and for sharing your thoughts!
plumfuchsia from plumfuchsia says

Are there any plans to add Etsy Checkout as a search option? I'm sure there will be buyers who will prefer to use this method exclusively.

Hi -
Right now we are focusing on opening up direct checkout to all sellers who want to use it, as well as making it more robust so that all varieties of sellers can find a way to make this payment method work for them. At that point, we may consider search as a feature, but we want to ensure that any seller who wants to be included in that search will be.

Michelle Mahler from TandZSupplies says
Dear Admin
I have searched and searched and can't find this answer. Why are our funds being help for 3 days after we ship before we can make a deposit?
Thnx! Michelle


Hey Michelle,
Funds are held either for three days from the order, or until you ship - whichever is later. We do not hold 3 days AFTER you ship - that is a piece of misinformation that I think has spread a little bit.

In any event, Amy is right, and there are risk reasons we do this. However, now that we have so many users and so many transactions, we're ready to adjust these holds for experienced sellers and you'll be hearing from us in the next weeks about changes.


2059 Responses

Yay! When will we all get this feature?

Thank you SO much. I've been wanting something like this for a long time.

Runs to check if my shop has the new feature....

(are you also going to announce this in the announcements, or just here in this thread?)
Great news!! Always nice to have other options!
"We’ll deposit funds every Monday, but you’ll be able to schedule earlier deposits of your available money if you want to."

Is that referring to depositing the funds into our bank account, or into our payment account here?
Does this mean that a non-etsy member may now purchase from our shops?
Very very interesting.

Looking forward to this discussion!
Oh my gosh, thanks!! I've been obsessively wishing for this for some time now but it was something I thought Etsy would never do. This would make everything so much easier.
wow!!! Will this be able to sync with Outright as well?
very very curious, in a good way...

Not available for me yet, but I added my name to the list. I am hoping this works like it sounds, so that non-paypal customers will feel more comfortable and less confused when checking out.

I am OK with it being deposited to my bank account. I am curious if instead, we can apply the "balance" to our etsy bill directly?
Yay!!! Thank you!!! Can't wait to get this!

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