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Week-long Payments Delays at Etsy Appear Mostly Over

Over a week after Etsy buyers began seeing their orders hung up due to a major problem with Etsy’s payment processing system, the company announced that most of the issues were cleared up.

In addition, Etsy expects to see no problems with Monday’s regularly-scheduled disbursements to sellers. In a post on a thread that is approaching 700 pages, Etsy wrote on Sunday, “Monday’s regularly scheduled deposit should not be affected by recent processing delays and will be scheduled as normal for US and International sellers.”

The problem impacted orders where buyers paid through Etsy’s Direct Checkout and was caused by Worldpay’s gateway. On Saturday (July 9), Etsy issued an update to say everything appeared to be processing normally except refunds.

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All affected orders have now been processed, and new orders should be processing normally, Etsy said, but noted, “We are still experiencing some delays with processing refunds that sellers have issued to buyers on past orders.”

Etsy sellers were incredulous as the problem, which started on July 1st, dragged on through the July 4th holiday weekend and into the entire following week. Etsy was criticized for the way it communicated with sellers, and major media outlets reported on the incident.

A similar incident had previously occurred, but the duration of the Direct Checkout near-outage was what made this one unprecedented.

Some buyers cancelled orders due to the payments delays, and some sellers had to send orders before payments were processed in order to satisfy their customers and maintain their reputations.

Sellers are now left without confidence in Etsy’s checkout system, and some have called on Etsy to provide compensation for lost and cancelled orders and the angst they went through.

Rather than check the Etsy Status board or Announcements board for updates on the payment processing delays incident, it may be best to look for updates on page one of this discussion board thread (scroll down and peruse the yellow-highlighted messages).

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Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. Send news tips to ina@ecommercebytes.com.


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