Anyone Using Etsy's Direct Checkout?

[MarilynKelleyArt]

I decided to use Etsy's Direct Checkout feature when it was rolled out.  It's a second option to Paypal, for those buyers who don't want to use Paypal. Buyers can pay with a credit card directly to Etsy.

The problem......Etsy holds your funds until you ship the item or 3 days.  I pride myself in getting sold items in the mail within 24 hours of cleared payment, if at all possible. I just had an Etsy sale for $40+ from a buyer in the United Arab Emirates.  I'm not inclined to ship without knowing that the credit card payment has cleared, so now, an international shipping item will take 3 days longer than it already does.

Have any of you who sell on Etsy used the direct checkout? Just wondering what others' opinions might be.

[ArtfulFolkStainedGlass]

Bearing in mind that opinions are like elbows (nearly everybody has one). . .

I have yet to come across an internet shopper who doesn't have a PayPal account.  I'm reluctant to share my banking information with yet ANOTHER organization, so I did not take advantage of the new Etsy plan -- and I have to say it has not hurt my sales one bit. 

I find that having to create an Etsy account in order to purchase somewhat cumbersome, but I've not had any complaints about that, either.  And with the high fees on Ebay I'd like to drop that venue, but I make sales there and the kids need shoes (so to speak).

So, yeah, I'd drop all of them if there was a better alternative for sales, but if there is I haven't found it.

[RiverRockArts]

I have that option on Etsy too, but I have not signed up for it.  There are too many complaints from sellers about the hold on the money and having to ship before you get paid.  I don't like that since I use the funds to pay for the shipping.  Also, Etsy makes it the default and removes the credit card icons from PayPal in the checkout.  They are giving themselves an unfair advantage since many buyers probably don't pay attention to it being the default. 

[MarilynKelleyArt]

I think I'll remove the option for in the future. I don't like being held hostage by Etsy....either ship without receipt of the money or wait 3 days.

[Blue Highways]

I don't use it. I'd rather Paypal get the fee....actually I'd rather I get the fee but.....

[myeuropeantouch]

Ok, lets talk about the legality here. Paypal has no right to hold your funds, as they are just a FUNDS TRANSMITTER and not a bank. They do not fall under any bank rules nor the Federal Reserve rules. They do it anyway.
And therefore have big class action suit going on.
Etsy has no right told your funds either, they also are just a funds transmitter and are just mirroring paypal and trying to get away with it. Just wait til somebody starts making a big stink on etsy.

Just think, Paypal does it to earn interest on YOUR money, Etsy wants interest on YOUR money too.....
And who has ever heard of shipping something out and have nothing to show for, you the seller.
No company out there does this thing, neither Catalog companies, or other large businesses....it is not legal.  You pay , they have to ship. You get paid, you ship....you dont get your money right away, you dont ship. Just think you are out the money and your item....ridiculous....there is another class action waiting to happend....
Get out of that option....

[myeuropeantouch]

And lets talk about paypal fees....you do not have to go that route either.
You can give the possible buyer your paypal email address and asked them to chose GIFT on paypal when they pay you and paypal cannot take any fees out nor can they hold your money. (wink)

[Blue Highways]

I've never had PayPal hold any funds

[MakinTheBestOfIt]

I've never had PayPal hold any funds

I've heard of it happening a couple of times but I never got the entire story.  It was on the Etsy forums at one time about a seller that had PayPal freeze their funds in their account pending some sort of investigation, not just the money from one transaction, but the entire account.  I'm guessing there was more to the story though. 


As far as I'm concerned, I would not checkout using Etsy's plan only because after years of selling there and some of the goof ups and stunts that were pulled I don't trust them.  I am not a fan of PayPal fees, but heck, they are a business and they make money and I've never had any problems with them.  In the end, they really are the big player and there are not any other options that compare in reach for online selling unless you want to set up your own merchant account.

[Larissa]

And lets talk about paypal fees....you do not have to go that route either.
You can give the possible buyer your paypal email address and asked them to chose GIFT on paypal when they pay you and paypal cannot take any fees out nor can they hold your money. (wink)

Do NOT use "gift" except for gifts!  First of all, it's fraudulent and theft.  I know it may not feel that way, but Paypal provides a service and they're entitled to charge for it.  Circumventing their policies and charges is stealing from them.

Second, this should never be advocated.  Look at it this way:  if a buyer buys from an unscrupulous seller and takes the seller's advice to say the payment as a gift rather than for a purchase of goods... if the seller never sends the item purchased, THE BUYER HAS NO RECOURSE THROUGH PAYPAL.  Paypal will NOT reverse "gifted" fund transactions ever, under any circumstances.

God forbid that happens here, it makes the HAFshop look bad as a venue, the same way I've seen people complain about "Etsy" as a whole when ONE single Etsy seller shafted them.

For the pennies Paypal charges, it's just not worth it.

[MarilynKelleyArt]

I have never had any issues with Paypal and I love that I can do my shipping labels so easily from Paypal.

My money from my Etsy sale on Saturday is finally scheduled to be deposited in my bank tomorrow. Once I have my money, I think I'll delete that payment option from my shop.

[Larissa]

I wonder... when I had a solo practice & would take credit cards, payments took 48 hours to drop into my account.  That was just the way the credit card machine people worked it.  So I wonder if it takes 48 hours for Etsy to get it & then they want to buffer it a day to cover themselves.  Maybe that's the delay?

[chainmaille]

I have to agree with you here on the paypal fees, trust me I do not like the fees one bit, but I do like the service so it is worth it. The fees are tough on us because of the shop subscriptions, we lose I think .45 cents to paypal fees on every $5.00 monthly subscription. That is 9%, pretty bad uh. I'm sure we lose less on the annual subscriptions, but still 9% of what we bring in on this site for vendor fees go straight to paypal. Unfortunately we couldn't find another way, whether you pay a credit card processor or someone else you will pay. As the shop grows, paypal has a certain dollar amount of gross transactions where they will do a fee reduction if you do a certain amount of business with them. But we are not close to that number yet.
Regardless no service is perfect not even handmade artists, so you need to take the good with the bad with all of them if you want to use them.

[MarilynKelleyArt]

Larissa, I'm sure that's how it works. I used to take credit cards on my website and there was a 2 -3 wait for them to clear. I think Paypal advances us the payments because when a customer uses Paypal, my funds are available immediately.

I think the difference for me is that when I took credit card payments on my website, I knew immediately if the funds were there to pay.  With Etsy, I just don't think I trust them to handle the payments.

[ArtbyNancyPace]

I don't sell on Etsy, but I use Paypal, the fees are annoying, but, if you take credit cards on your own site, you will still pay fees to the card company. I paid fees, and had a delay of 24 hrs before I had the funds deposited.
Paypal is a service, no one wants to work for nothing. I have never had an issue with Paypal.