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Etsy Responds to PayPal Integration Concerns

Etsy’s Senior Manager of Payment Operations responded to concerns over the company’s decision to add PayPal to its Direct Checkout payment option. Sellers now have no way to exclude PayPal if they want the benefits that Direct Checkout affords them.

However, there’s an important distinction that may have been lost on users in the initial shock of reading Tuesday’s announcement: the Direct Checkout-integrated PayPal is not the same as a seller’s own PayPal account. As the marketplace explained:

“If you already have your own standalone PayPal account, you’ll have the option of choosing integrated PayPal in the coming weeks. You’ll also have the option to keep payments running through your own PayPal account.”

We asked Etsy’s Nicole Grazioso a few follow-up questions, here’s what she had to say.

EcommerceBytes: Is there any way at all that sellers can use Direct Checkout without having PayPal show up as an option for buyers? If not, why not?

Nicole Grazioso: Etsy is working to provide a consistent experience for buyers on the platform, so that a buyer can choose their preferred payment method when shopping on Etsy. In building Direct Checkout, our goal is to provide a payments platform where sellers don’t have to worry about dealing with different currencies or different payment systems, so that they can focus their time on their craft.

To that end, sellers using Direct Checkout that do not also have a standalone PayPal account attached to their Etsy shop will have PayPal appear as an option for their buyers.

We have previously added other payment methods to the Direct Checkout platform, including iDEAL and Sofort for European buyers, and ApplePay and Google Wallet for mobile buyers, and to the seller these all appear as a “Direct Checkout” payment.

EcommerceBytes: So if a shopowner accepts Direct Checkout and PayPal, there’s no change, but if a shopowner accepts Direct Checkout and hasn’t added their own PayPal account, Etsy will add its own PayPal account to the DC flow?

Nicole Grazioso: That’s correct. And Checkout on Etsy will look the same for buyers. However, instead of seeing a seller’s personal PayPal email address on their receipt, they will see an Etsy email address. Buyers will still see information about how to contact a seller as well as how to contact Etsy Support.

EcommerceBytes: As a seller asks in this thread, which policy governs over the claim period?

“The Etsy guideline says buyers have 60 days to file a claim, and the claim will be decided by Etsy, and that sellers return policy will be honored if the seller followed Etsy policy. In sharp contrast, the PayPal guideline says buyers have a whopping 180 days to file a claim, and the claim will be decided by PayPal.”

Nicole Grazioso: We will be encouraging buyers to resolve any potential issues with their orders using Etsy’s case system. This will continue to work as it does today for disputes on Etsy. If a buyer decides to report a problem directly with PayPal, whether or not it is within Etsy’s 60-day window, these will be managed by Etsy similarly to how we manage chargebacks from credit cards with Direct Checkout (for some credit cards, disputes can be filed for up to a year!).

What this means is that PayPal contacts Etsy when a dispute is reported with PayPal. From there, we investigate to understand the details and nature of the dispute, and Etsy will be working on behalf of sellers to resolve these disputes – the seller will not directly participate in the dispute. Etsy is shouldering the responsibility of managing PayPal disputes, rather than the seller.

Comment on the AuctionBytes Blog.

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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). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.