Etsy is requiring all sellers to accept Direct Checkout, which it is rebranding "Etsy Payments." Sellers who don't set up Etsy Payments will have their selling privileges suspended on May 18.
Etsy says it wants buyers to have a consistent experience when they check out on Etsy, though it's also important to note this is a revenue generator for the company, which went public 2 years ago this month. "When a buyer pays using Direct Checkout, we'll deduct a payment processing fee before depositing the funds into your bank account. This fee varies by location of your bank and can range from 3-4% of an item's total sale price, depending on your country."
Here's today's announcement
from Etsy - let us know what you think of the new policy.
Starting today, Direct Checkout has a new look and a new name. Etsy Payments allows you to accept multiple payment methods, including credit and debit cards, PayPal, and gift cards. It's also more flexible, stable, and secure than ever.
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.
If you're already using Etsy's payments platform, there's nothing you need to do. If you only accept payments through PayPal or manual payment methods, you'll need to set up Etsy Payments by connecting your bank account and verifying your identity. If you currently have standalone PayPal in your shop, you can still choose to keep your PayPal sales separate.
Keep an eye out for an email detailing what this means for your shop. Or visit our information hub to learn more about Etsy Payments here: etsy.com/payments
Note: The payments page was unavailable for us when we checked it this afternoon before publishing.