Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sat Dec 5 2015 20:41:06

Sellers Fret as Etsy Holds Their Funds

By: Ina Steiner

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Etsy has delayed sending payments to sellers who use its Direct Checkout system, a problem occurring since the long holiday weekend. The first issue impacted international sellers on Cyber Monday and was cleared up on Wednesday, but now it's impacting US and international sellers, who are writing to EcommerceBytes about their missing funds.

Sellers are fretting over bills they have to pay and are concerned about whether Etsy will come through on Monday with their money that was due on Friday.

"I hope the Etsy employees are all having a great weekend and able to pay bills, go out to dinner, and do other fun stuff. The sellers are all missing funds that we could all be doing this stuff with. Not your late rent payment, car payment, phone bill,etc....so it isn't a big deal to you," wrote one frustrated seller on the Etsy discussion boards.

A number of sellers are so concerned that they are deciding to turn off Direct Checkout. One such seller wrote to EcommerceBytes, "Etsy hasn't been releasing funds to sellers from the Direct Checkout system. For the past few days it was just international sellers. As of yesterday US sellers, including me, didn't get a scheduled deposit."

Another seller told us, "A large number of sellers, including myself, have turned Direct Checkout off until this is fixed. We see it as, if we miss a sale because of it, there is no difference. We aren't getting the money from the sale anyway."

An Etsy moderator posted today at 2:26 pm:

"Our apologies for the delay with getting back with more details on what has happened with deposits scheduled for December 4th.

"This appears to have impacted both US and International Shop Payment Account deposits. 

"Our Payments Team is aware of this issue and investigating. However, since it’s after banking hours, deposits will have to be sent on Monday.

"We'll be sure to update with more information as soon as we receive it."

Some sellers wondered if Etsy was having a cash flow problem of its own. You can read the expanding thread here beginning on page one.

Update 12/6/15: Spokesperson Nikki Summer provided us with a letter Etsy is sending to sellers who were impacted that began going out this evening:

I'm writing to sincerely apologize for the delay with Friday's Direct Checkout deposit, which was  caused by a technical error. Your funds will be disbursed tomorrow (Monday) and will be credited to your bank account no later than this Wednesday, December 9. You do not need to take any action at this time.  

About 12,500 sellers were impacted out of our 1.5 million seller community, and we take this seriously. To acknowledge this error, we are refunding to impacted sellers the listing fees, transaction fees and Direct Checkout fees associated with sales between their last deposit and the deposit originally scheduled on Friday, December 4.  For most of the impacted sellers, this represents one to three days of sales, but for some, it is four days. This refund will be included in tomorrow's deposit and will be seen in your Shop Payment Account account as an "Etsy Miscellaneous Credit."  If you incurred late fees or overdraft fees from your bank account in conjunction with our mistake, please contact us through the Help Page so that we can reimburse those, too. Our hope is that this refund will help address any difficulty you experienced and that you will accept this as an apology for any disruption that this caused over the weekend. 

The delay was due to a technical error that prevented the deposit file from being created. As of last evening, the technical error has been addressed. Unfortunately, the monitoring we have in place to ensure the creation of a deposit file did not detect the error, and we were not aware of the issue until we started seeing reports from sellers. Please know that we are not withholding your funds over the weekend intentionally. ACH rules prevent us from transferring money over the weekend. Our payments team is looking into ways we can improve our monitoring and deposit process so this doesn't happen in the future. We'll report back to you on our progress. You can read more here.

We are grateful that you're part of the Etsy community and very much appreciate your business. Please don’t hesitate to reach out to me by Convo if I can be of assistance to you.
Thank you,
Heather Jassy
SVP, Members and Community

We've got more on this story in Monday's EcommerceBytes Newsflash, available here.

Let us know what you think of how Etsy is handling the issue.

Comments (47) | Leave Comment | Permalink
Readers Comments

Perminate Link for Sellers Fret as Etsy Holds Their Funds   Sellers Fret as Etsy Holds Their Funds

This user has validated their user name. by: Bad Hair Day

Mon Dec 7 15:14:56 2015

Just for clarification. Etsy calls their payment processing service 'Direct Checkout'. It launched June 20, 2012.

They have from it's very inception, with absolutely no prior experience in payment processing,or offering any other services or phone support,charged their sellers 3% + .25.

Maybe it's just me ? :]

Perminate Link for Sellers Fret as Etsy Holds Their Funds   Sellers Fret as Etsy Holds Their Funds

This user has validated their user name. by: Marie

Mon Dec 7 18:03:41 2015

@bad hair day

All Credit cards charge the merchant a fee for processing.  Some CCs like American Express have higher fees than the rest.  While you obviously don't like paying Etsy for that fee, if you had your own merchant account, you would pay that or more.

Perminate Link for Sellers Fret as Etsy Holds Their Funds   Sellers Fret as Etsy Holds Their Funds

by: StayClassy This user has validated their user name.

Tue Dec 8 09:37:03 2015

I have refused to use DC in my Etsy shops since DC's inception, for the life of me I couldn't figure out why anyone would want Etsy to ''hold'' their money for any amount of time. No customer service, no phone support, no thanks!! I have 4 shops on Etsy ( a seller since 2007 ) and in total have had 5 buyers tell me via convo they prefer to not use Paypal. To that I say ''I am sorry but I only use Paypal.''

Have I missed a sale here or there ? Sure, am I worried about that- nope.

Obviously I do not trust Etsy with my money for obvious reasons !! The *why* should be obvious to every one at this point.

It doesn't matter if it was intentional or not- either way shows an appalling lack of skill and understanding.  

Perminate Link for Sellers Fret as Etsy Holds Their Funds   Sellers Fret as Etsy Holds Their Funds

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

Tue Dec 8 10:49:09 2015

A lot of Sellers from Canada are very upset:
https://www.etsy.com/teams/7722/discussions/discuss/17164611
/page/10

Etsy
seems to think it is OK to treat Canadians and Britts differently than us Americans.. Not Fair! We all pay fees and actually the Canadians and UK were out the most on this fiasco as their funds were held the longest. WTG Etsy .. Tick off a major segment of your sellers .. once again. I seriously doubt they have a brain cell amoungst all the staff at Etsy as far as PR is concerned with their international sellers.. Do they not know that this will bite their backside in time? Not smart to tick off a few zillion Nice Canadians as they will only be pushed so far. then they will snap.

Perminate Link for Sellers Fret as Etsy Holds Their Funds   Sellers Fret as Etsy Holds Their Funds

by: StayClassy This user has validated their user name.

Wed Dec 9 10:13:56 2015

How tone deaf is Etsy??

In the midst of all this and more - more bugs , more glitches in listing, in shipping labels, while turning off the phones and turning their backs to Canada sellers they do this :

https://www.etsy.com/teams/7722/discussions/discuss/17167007/
page/1

TONE
DEAF.

Perminate Link for Sellers Fret as Etsy Holds Their Funds   Sellers Fret as Etsy Holds Their Funds

by: mcposty This user has validated their user name.

Tue Dec 15 20:37:03 2015

There should be no interest earned in.durect check.out, interest means they invest your money. Etsy is not a bank and unless they pay interest to.yiu, they are thieves.

Perminate Link for Sellers Fret as Etsy Holds Their Funds   Sellers Fret as Etsy Holds Their Funds

This user has validated their user name. by: Shop and Ship

Sun Jan 31 11:51:18 2016

Class Action Settlement Notice for PayPal Holds on Seller Accounts:

https://www.accountholdsettlement.com/


Zep
eda
v. PayPal Settlement

United States District Court for the Northern District of California
Case No. 10-CV-02500 SBA
 

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