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Etsy Gives Sellers Another Reason to Use Direct Checkout

Online marketplaces realize several benefits when they process payments for their sellers. Etsy launched its own payment processing option called Direct Checkout 2 years ago, and on Tuesday, it announced another feature to make it more attractive to sellers.

All sellers who use Direct Checkout will now be able to pay their Etsy fees using their Shop Payment Accounts, including all transaction and listing fees as well as Shipping Labels and Search Ad costs. Previously, sellers could only pay their Etsy fees using a credit card or PayPal account. As Etsy explained in its announcement:

“This meant that paying your Etsy fees was simply a matter of transferring what you owed Etsy to your credit card or PayPal bill. Now, sellers who use Direct Checkout can eliminate that extra step and manage their cash flows in and out of their shops more efficiently by paying their fees right from their Etsy accounts. If you’re a seller who uses Etsy Shipping Labels or advertises through Search Ads, this feature makes paying for those services a cinch.”

When sellers select “Shop Payment Account” as their payment method to pay their fees, payment will only be available if their account is funded. Etsy will allow them to use their Shop Payment account to cover part of their Etsy fee totals in cases where they have partial funds available.

For sellers outside the U.S., there’s another advantage to using their Direct Checkout balance: they won’t be charged currency conversion fees, and Etsy will convert their balance to a USD balance at the time of payment at no additional charge.

Sellers must manually pay fees with their Shop Payment Accounts in the initial phase, but they can leave autobilling turned on to help avoid missing a payment.

It’s worth noting that in addition to Direct Checkout, sellers have their choice of payment methods on Etsy, including eBay’s PayPal service, their own credit card merchant accounts, and even checks and money orders.

You can learn more about how to pay fees using your Shop Payment Account, and read the announcement here.

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Ina Steiner
Ina Steiner
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.