Etsy Payments – get on board, or get out

Etsy sellers must accept Etsy Payments (formerly known as Direct Checkout), by May 17, 2017 or you'll be suspended from selling on Etsy on May 18.

On April 11, Etsy announced:

Because we want buyers to have a consistent experience when they check out on Etsy, we're requiring that all sellers in eligible countries set up Etsy Payments by May 17, 2017. If you don't set up Etsy Payments, your selling privileges will be suspended on May 18.

With over 1.6 Million sellers, a little over a months notice doesn't seem like enough lead in time to even communicate this to everyone effectively.

So, what does this mean exactly?

This means that Etsy sellers who prefer to only accept PayPal as a payment method, cannot do so anymore.

Conform, or get out doesn't give sellers a lot of confidence. This heavy-handed approach is cause for concern. And, as a result, a lot of sellers are really upset about it. It's been less than a week since the announcement and already we have had 100's of new sellers that state Etsy decision as the primary reason for joining Zibbet.

Here's 8 reasons why sellers are so upset

Molly from Molly Sue Design Co said it best in this Etsy forum post.

We're quoting her directly below...

Okay guys, I’ve read about a lot of people not understanding why other sellers are upset about Etsy Payments being implemented.

So I’ve compiled a list of the top legitimate concerns I've seen. I posted this in a couple threads but I think it could use its own discussion, for any sellers to add on to. :)

  1. Sellers with current Working Paypal Capital Loans that relied on Etsy Sales being processed through PayPal to make automatic payments and to qualify for future loans.

  2. Shops that qualified for PayPal’s discounted ‘Merchant Rate’ and will now need to pay higher fees on their items through Etsy Payments.

  3. Those with PayPal Business Debit MasterCards who had instant access to their funds.

  4. Those who have moved countries since they started on Etsy, and rely on PayPal for sales processing because Etsy does not allow a change of country, unlike PayPal. They are now being told the have NO option other than to open a new shop once Etsy Payments are live. Several Etsy sellers have been seeking a solution to this for YEARS (!!!) with no resolution from Etsy. They will lose their history of sales, thousands of listings, and reviews.

  5. That there are dozens of bug reports daily related to Direct Checkout and many people have constant issues with funds being withheld incorrectly. Seriously, check out the bug forum sometime you guys, or look at ALL the threads we had last year complaining about when Direct Checkout was down/working incorrectly. I realize you may be a lucky seller who has never been affected but many others have.

  6. That Etsy has no current dedicated phone support, and people are concerned if they have an issue with Etsy Payments there is nobody they can reach by phone. YES you can request a phone call, but the keyword there being REQUEST. If they decide your issue doesn’t ‘qualify' they will not call you. What happens if we need to discuss a bank issue with them? Are we going to have to end up doing it by email? This ties into the privacy concern many sellers have. And even requesting a call, again check the forums and teams for posts about this: sometimes it will take them hours to call you back, or you won’t receive a call back at all. Meanwhile, PayPal has phone support 24/7.

  7. PayPal has much more in-depth coverage for seller/buyer protection and as mentioned above, 24/7 phone support for sellers/buyers, and many Etsy sellers prefer that over Etsy’s case resolutions for Direct Checkout.

  8. Privacy. Many sellers are being asked to provide ID, passports, and sensitive information before being allowed to accept Etsy Payments. DID YOU KNOW back in 2013, in an email Etsy mistakenly included the names of sellers taken from their credit card information on file? And in 2014, a password reset was required due to Ebay being compromised and many Etsy seller's accounts being hacked. I realize it’s easy for people to make light of privacy, saying sellers are just being ‘paranoid’, but leaks and hacks HAVE happened to Etsy previously.

  9. Sellers without bank accounts or limited access to a bank account. I’ve read multiple posts about special needs or disabled sellers, even sellers who recently have had surgery or are sick, who do not have access/limited access to a bank account or vehicle and PayPal was their preferred method of payment since it was easier for them to access their funds immediately without outside help.

I hope that helps other sellers understand what the 'big deal' is. If anybody has anything to add, please reply and do so! :)


If you're looking for an Etsy alternative, we'd love to invite you to check out Zibbet. With Zibbet you can build your own standalone website PLUS you'll also get exposure in Zibbet's own marketplace.

We strongly believe in the freedom of choice. If you want to accept only PayPal, then go right ahead. We also have the ability to accept credit cards if you like.

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