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EcommerceBytes-NewsFlash, Number 2896 - September 20, 2012 - ISSN 1539-5065    2 of 5

Etsy Works to Make Direct Checkout More Attractive

By Ina Steiner
EcommerceBytes.com
September 20, 2012




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Etsy is removing the 3-day hold requirement on using Direct Checkout, its optional feature in which the online marketplace processes payments on behalf of sellers. Over 100,000 shops now offer Direct Checkout, which Etsy launched in February. Direct Checkout allows U.S. sellers to accept credit card payments in their shops, including Visa, Mastercard/Eurocard, Discover Network and American Express.

Certain features on Etsy, such as shipping labels and gift cards, are only available to sellers using Direct Checkout, since Etsy controls the payment processing for those transactions.

One of the drawbacks of using Direct Checkout is having to wait to receive funds. With Wednesday's announcement, Etsy said effective immediately, shops that have been selling for more than three months on Etsy, regardless of whether they are currently signed up for Direct Checkout, will no longer have a minimum 3-day hold on funds from Direct Checkout orders. Etsy said funds will now be available for deposit the next day - if the seller shipped the item.

"Sellers will still need to accurately mark orders as shipped, but if the order is shipped the day the sale is made, the money will be available for deposit the next business day," according to the Etsy announcement. "If the order is shipped after the one business day, the money will become available for deposit as soon as the order has been marked as shipped."

Shops that don't meet the requirement of having been selling for a minimum of three months on Etsy will still have the 3-day hold until the specified amount of time has passed from their first sale.

One seller commenting on the Etsy boards wrote, "I am really satisfied with the performance of Direct Checkout. My only suggestion would be to employ tiered fees, like Paypal and my old merchant account. I have seen a dramatic increase in the size of my orders with DC, thanks Etsy!" Another seller agreed about the fees, writing, "I would also like tiered rates as PayPal had. I am currently paying more in fees to use DC."

Etsy plans to offer additional currencies and add additional payment methods to Direct Checkout in the first half of 2013, such as real-time bank transfers, eWallets, and local debit cards.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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