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Tue July 5 2016 23:08:41

Etsy Provides FAQs as Payment Issue Drags On

By: Ina Steiner

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Etsy provided some important answers to sellers who are impacted by a technical issue that stalled payments over the long holiday weekend. As we reported in Newsflash, reports began on Friday of Direct Checkout payments not going through - and the problem continues into Tuesday evening.

As customers became concerned, irate, or actually cancelled orders due to the long delays, sellers wondered what to do and whether they should ship orders.

Finally on Tuesday Etsy advised sellers not to ship - "We recommend that you wait until these orders are confirmed to ship your item. Rest assured, we're processing orders on a rolling basis and you will receive a confirmation for your pending order as it is processed."

But even so, sellers worried, such as the ones posting in this thread. "I have 2 orders but Etsy have send me a mail saying some delay in payment processing and they are working on it. Etsy have mentioned not to ship it until the issue is resolved. The person wanted it to be delivered in 2 days ... I don't know what to do with the order."

Sellers responding to the original poster offered conflicting advice. "Personally I would ship the order if there was any assurance that it would arrive in time," one seller said, while another said, "Many people would say the exact opposite, including me. I never ship until the payment goes through."

Incredibly Etsy continued to have problems, writing on Tuesday at 2 pm ET that Etsy's third-party payment processor continued to have a technical issue that was resulting in delays in payment processing. "Because our third-party payment processor is still dealing with technical issues, new orders are still impacted by payment processing delays. As our processor deals with the backlog of payments, we are processing them on a rolling basis."

Interestingly Etsy revealed on Tuesday that both Integrated and Standalone PayPal are unaffected by the issue. "Only credit card and gift card payments are currently impacted by the issue our third party service provider is experiencing."

What about cases where buyers request a refund? Sellers' hands are tied - Etsy explained, "the order will need to be confirmed before you can issue a refund. If your buyer has further questions, please tell them to contact support@etsy.com."

Another issue sellers worried about was addressed in the FAQs:

Q: Will this issue affect payouts tomorrow?

A: We're working hard to ensure that sellers receive funds from affected sales as soon as possible. For sellers that are expecting to receive payouts tomorrow, your payout will be reflected in your Shop Payment Account balance at 1 PM EST. In order to capture some of the affected payouts that are still processing, we plan to issue another round of payouts this evening. If you have funds included in the evening payouts, you may receive a second email letting you know that your funds are now on their way and you may also see two payments tomorrow in your bank account. 

Sellers reported some payments were starting to go through today, but many were unable to figure out in what order - some were older orders, some were newer orders.

Let us know how the problem has impacted you, and what Etsy should do next.

Update 7/8/16: Worldpay is the culprit, here's the latest on the situation.




Comments (72) | Permalink

Readers Comments

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: Watching the Wheels This user has validated their user name.

Wed Jul 6 06:09:22 2016

Well, yet again, the ETSY SLOP WORK CHICKENS, are coming home to roost.

Not that I've been selling much pretty much since they SLOP WORKED, the listing category drop down choices, ...

... THANK GOD! I NEVER TRUSTED THESE DWEEBS TO HANDLE MY MONEY.

P.S.

Might be indicators,

Jim Breyer has stepped down from the board
John Alspaw recently sold a good chunk of his stock.

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: HappyOne This user has validated their user name.

Wed Jul 6 07:03:23 2016

I suspect much of this is due to the large swings in the English Pound. Etsy has a good percentage of English buyer/sellers. The Brexit will hamper Etsy and Ebay buyer/sellers until (if) things stabilize.  

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: Watching the Wheels This user has validated their user name.

Wed Jul 6 07:20:22 2016

No, Happy One. Etsy HAS ALWAYS DOES SLOP WORK,...

AND, always tried to blame someone else.

Stop making excuses for them.  

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: Watching the Wheels This user has validated their user name.

Wed Jul 6 07:28:17 2016

OR, providing ones that they'll try to use.

It's a matter of standards and accountability. Etsy doesn't practice either.

P.S. forgive my typos in above post.

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: HappyOne This user has validated their user name.

Wed Jul 6 07:41:13 2016

Watching the Wheels - I am not making any excuses for them. It surprises me they have any sales to make a difference. Whoever their ''processing'' partner is probably can not react as fast as PayPal can. I assume that this processor is much smaller. These time lapses could have resulted in currency exchange losses and they are trying to cover them with Ponzi scheme type tactics ''rolling'' payouts as new money becomes available.    

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: maxmad This user has validated their user name.

Wed Jul 6 07:56:33 2016

etsy has really transformed into a looser company this year,

On one of accounts they fraudulently opted us into DC, when we clearly and absolutely opted out, they would not restore our standalone paypal account, so we immediately Closed that account, and moved all our products to another standalone paypal account, and we TURNED OFF DC completely, and no longer buy shipping labels with etsy, we also stopped using Promoted Listings,

So in the end all etsy got from this is LESS MONEY, and an upset customer,

Greed, lies, cheaters, and fraud, that is what the etsy brand represents for us.  

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

This user has validated their user name. by: White Rabbit

Wed Jul 6 11:10:18 2016

" These time lapses could have resulted in currency exchange losses and they are trying to cover them with Ponzi scheme type tactics ''rolling'' payouts as new money becomes available." HAPPYONE

WorldPay is a big company and you can bet they know Etsy and the crap Etsy pulls and blames on Tech Issues and even blames WorldPay. An insult that you can bet will not go unanswered by WorldPay.

My Guess?.. Etsy has to pay a float to cover the sales transactions and any issues such as international money exchange rates are included in this (as you noted).  I bet the amount is huge.. many many millons of dollars $$$. this would also include chargebacks and fines imposed by Visa and Mastercard for companies that do not comply with Internet security stated rules by Visa and Mastercard. Worldpay is at risk for the actions of Etsy if Etsy allows Personal Data to be stolen or as in the past.. Etsy has Published personal seller account data to the public on their own.

My Conclusion.. Etsy is on very thin ICE with WorldPay and Visa/ Mastercard. We are seeing proof of this. Etsy can act unprofessional all they want with Sellers but trying this with the business world?... They are and will Pay dearly. My opinion.  

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

This user has validated their user name. by: iheartjacksparrow

Wed Jul 6 11:16:14 2016

Isn't PayPal their "third party payment processor" for Direct Checkout? Isn't this the fourth or fifth major glitch they've had so far this year?

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: john kane This user has validated their user name.
Web Site

Wed Jul 6 11:18:04 2016

Amazing to say the least, especially for a company that used its raving fans/sellers to grow to what they are today. Now they alienate them with bad communication on tech glitch. Not good!

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: john kane This user has validated their user name.
Web Site

Wed Jul 6 11:20:26 2016

Amazing considering how etsy used there raving fan or sellers to grow the marketplace to what it is, they will now scream and leave to other marketplaces. I would like to think if they just better communicated the problem this would be going over better.  

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

This user has validated their user name. by: White Rabbit

Wed Jul 6 11:40:55 2016

over 6,139 posts and climbing.. this etsy thread could hit 10,000

https://www.etsy.com/teams/7720/bugs/discuss/17862239/

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: TK Mom This user has validated their user name.

Wed Jul 6 11:44:15 2016

Etsy's stated issue ((Payment Processing)) is a smoke screen. A larger issue creating this delay will be revealed within ththe next few days.  All credit card payments have been authorized & fraud checked so someone is sitting on the money. This puts Etsy in serious violation of VISA Rules & Regulations.

--->>> Etsy sellers: back up your data and establish an alternative site for peace of mind.  

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: unbelievablefinds This user has validated their user name.
Web Site

Wed Jul 6 14:20:51 2016

This isn't a ''glitch'', ''delay'' or a ''slight technical issue''. Etsy is dealing with a data breach with their processor. It does not take 5 days and counting to fix a technical issue unless that issue was being hacked. I've been an online retailer for 16 years and have seen pretty much everything. Etsy is not giving any specifics whatsoever about this ''technical issue'', so that not only raises a red flag, it shoots off fireworks and waves banners that say ''etsy's not coming clean with the magnitude of the problem''. If it was a slight glitch, it would have been fixed days ago. It also has absolutely nothing to do with Brexit because the UK is still part of the EU, the process of the UK exit hasn't even begun beyond a vote. This was a data breach and if it wasn't, etsy would be constantly reassuring everyone it was not a data breach. They are by law required to tell us if there was a data breach, but they have 90 days to do so. That tells you one thing, if it wasn't a data breach,  they would be posting constant updates to reassure everyone that it wasn't a data breach. The 90 days gives them time to ''circle the wagons'' and figure out how to publicly announce it to cause the least amount of damage to the brand and its stock price. Either that or they are using a processor that is completely unqualified to be processing the volume they do. My money is on a data breach unfortunately and I already know I will be dealing with some unhappy etsy customers because of this.  

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

This user has validated their user name. by: Ina

Wed Jul 6 14:31:22 2016

Etsy posted an update today (July 6) at 12:20 pm ET. Excerpt: "We're still working on resolving this issue with our payments processor."

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: NoFreeLunch This user has validated their user name.

Wed Jul 6 14:41:42 2016

Last fall, before Etsy introduced DC with Integrated Paypal, there was a " bug" where some shops stand alone Paypal payments were transferred into an Etsy Paypal account instead of being paid to the shops Paypal accounts.
No one could figure out how Etsy got between Paypal  and the shops incoming payment money.
Then they introduced DC integrated Paypal and made it mandatory for all new shops, and an opt out by a certain date for existing shops.
The " bug" that happened tells me that Etsy set up an Etsy Paypal account and is now routing payments through that .
They probably did the same thing with WorldPay for DC, because on the customer recipes the merchant is listed as Etsy,not the individual shop owners shop.

So what looks like is happening is that Etsy is having a cash flow problem and is getting the money from Worldpay, but is holding it instead of it automatically being paid to the shops.
It would be like someone sharing a craft market booth with another person and running the other person's sales through their credit card processor, but waiting days to pay them.

This comes on the heels of Etsy not paying their Canadian Postal account bill last fall, and payment delays of money being transferred into shop accounts on numerous occasions.
Best for everyone who can just disable DC and never turn it back on, and hunt for another selling venue.
Etsy is in big financial trouble, best to just cut and run before you loose any funds.

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

This user has validated their user name. by: bitbybit

Wed Jul 6 15:41:57 2016

When I first read this I thought the same as Jack about Paypal being the third party processor. With all the recent Paypal ''glitches'', wondering if there is some sort of connection. The conspiracy theorist in me thinks some sort of sabotage with Paypal trying to have Etsy end Direct Checkout completely and have all buyers pay only through Paypal.

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: Flying Childers This user has validated their user name.

Wed Jul 6 15:57:00 2016

How is it that Chad and the other higher ups are not being taken out in handcuffs? Where is the NY Federal Prosecutor, Preet Bharara who has been taking down all the highest sitting politicians? Why is Etsy above the law, just like Hillary Clinton?

Forget about Brexit. The problems we are seeing here are due to an American phenomenon known as crony capitalism. Etsy admins are such busy little snowflakes, censoring every comment for the slightest perceived political incorrectness, yet they can't even process payments or do the job they're getting paid to do.

There is now a virtual stampede of angry fed up sellers who are leaving for greener pastures, who were the backbone of this site.

Just like with the Clintons, the laws are meant for the little people, not for them.

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: lula This user has validated their user name.

Wed Jul 6 17:33:39 2016

Paypal payments are now not going through.  I have standalone paypal -- not integrated, and two customers have informed us that the payments will not process.  What does that mean?  They are taking the money in Direct Checkout and holding it, but rather than have everyone flee to standalone paypal, they have disabled it? Are we all just a little scared that if we complain they will shut us down? (I know I am).

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: Nuts2U This user has validated their user name.

Wed Jul 6 17:46:03 2016

Etsy's DC payment processing has been compromised for six days now. There's no message on Etsy's home page about a problem. Buyers buy stuff and pay, with no warning of trouble. Sellers receive neither buyers' money nor emails acknowledging their transactions. Buyers can't cancel uncleared purchases to obtain refunds.

Based on Etsy's failure to act and hundreds, maybe thousands of complaints on Etsy's forum, it's painfully obvious Etsy is stealing. What isn't clear is why all these complainers are whining to each other on a forum Etsy doesn't read.

It's called a class action, kids. Hire a lawyer!

Etsy Provides FAQs as Payment Issue Drags On   Etsy Provides FAQs as Payment Issue Drags On

by: Nuts2U This user has validated their user name.

Wed Jul 6 17:56:17 2016

Also interesting to note is the sudden increase in buzz on Etsy's forum about ecommerce rival Artyah.com. I doubt it's a coincidence that Artyah crashed today, presumably from a stampede of disgruntled Etsy sellers desperate for an alternative.

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