Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Sept 8 2015 23:06:29

Etsy Policy Unleashes Firestorm Against PayPal

By: Ina Steiner

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PayPal has a big PR problem among sellers, one that extends beyond eBay, we discovered on Tuesday. When Etsy told its sellers it was adding PayPal to its Direct Checkout, it unleashed a barrage of complaints about the payment service from sellers.

The news elicited comments like the one from this seller: "Will these transactions be protected by PayPal or Etsy? PayPal is notorious for not protecting sellers and I do not wish to do business with them and be at risk for losing money."

And this one: "I'd like to know if buyers can go right to PayPal and file bogus claims to scam buyers like they do on eBay."

Etsy's optional Direct Checkout feature allows sellers to accept credit cards without having a merchant credit card account. Etsy also gives sellers several choices of payment methods they can offer, including PayPal.

But Tuesday's announcement means sellers who choose to use Direct Checkout will have no way to block PayPal as a payment method offered to their buyers.

Not all sellers who discussed the change were concerned - some on this thread did not see any cause for alarm.

Is Etsy now offering PayPal in Direct Checkout because it's no longer directly owned by eBay (as of mid-July)?

Etsy writes, "PayPal transactions processed through Direct Checkout are covered by Etsy Seller Protection. PayPal payments will be treated just like credit card payments for the seller. Sellers won't interact with PayPal at all on these transactions." How can that be, since buyers will expect the same rights and protection using PayPal on Etsy as they do on other venues?

It will be interesting to see how it plays out.




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Readers Comments

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

by: Volvo351 This user has validated their user name.

Wed Sep 9 01:04:38 2015

Some Etsy sellers "didn't see cause for alarm?" Just wait 'til PayPig pulls MONEY out of their account, based solely on the say-so of a scammer! They'll change their tune PDQ!  The "buyer" is using PayPig, and will abuse "buyer protection" offered thru that bank-that's-not-a-bank. The seller will be caught flat-footed - just the way a scammer wants.

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

This user has validated their user name. by: Ric

Wed Sep 9 01:18:46 2015

So now Etsy sellers will join eBay sellers under the thumb of PayPal's 180 day return policy.

Sellers who abandoned eBay for greener pastures on Etsy now find themselves subject to PayPal's mandated 180 day return policy....

THAT will go over well!!!

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

by: sasikat9 This user has validated their user name.

Wed Sep 9 06:34:29 2015

One had to be living in another world not to see this coming.  All these auction sites are hand in hand with each other.  More to come. Tee Hee

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

This user has validated their user name. by: Rexford

Wed Sep 9 07:09:46 2015

Unbelievable. Etsy is a venue that we have been selling on, but I am now going to have to rethink this.

A 180 day return policy is unacceptable, and down right crazy.  What is Etsy thinking?  As Ric stated above, people went to Etsy to get away from the evil that is eBay / PayPal.

Do any of these companies EVER listen to their customers?

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

by: Volvo351 This user has validated their user name.

Wed Sep 9 07:58:56 2015

Ina says "[PayPig]has a big PR problem among sellers..."

Gee, ya think? feeBay makes it virtually impossible for small sellers not to be exposed to Head#2 of what is still a Two-Headed Monster, bogus claims of "separate" co's notwithstanding. The stock may be separate but with a trade-retraining "joint operating agreement" there is in fact no "separation."  Now The Hoe has gotten his thieving outfit gay-married to Etsy, too. Seems the only saving grace here is that Etsy sellers do have an option: discontinuing use of "direct check-out."

I would certainly advise those sellers to do so and CALL Etsy explaining why. Clearly that functinality [D/C] has to be amended to permit sellers to specify which payment sources are acceptable. Given a choice, sellers will reject PayPig. Etsy should, too.

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

by: Volvo351 This user has validated their user name.

Wed Sep 9 08:04:25 2015

Gee, gotta LOVE this Big Lie: "Sellers won't interact with [PayPig] at all on these transactions."

Well, you WILL when there's a bogus SNAD opened by PayPig against you. Or, you'll be stuck screaming to Etsy when they tell you, ala feeBay's worthless Customer [non-]Service Rep's, "There's nothing we do; it's a [PayPig] problem!"

Nice move, Etsy; you'll be seeing your sellers drop like flies. What did The Hoe pay you to force this PoS on your paying customers?

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

by: RCL This user has validated their user name.

Wed Sep 9 08:45:37 2015

"gay-married"? I would have blocked that one.

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

by: Volvo351 This user has validated their user name.

Wed Sep 9 09:20:44 2015

@RCL

Gee, are you saying there's something wrong with gay marriage, or that I'm implying so? The Supreme Court says it's perfectly OK! These nine people in black robes trump democratic rule, so clearly they know what's best for us.

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

by: Volvo351 This user has validated their user name.

Wed Sep 9 09:23:35 2015

@RCL

Your objection to my characterization of the relationship between Etsy and PayPig [aka The Hoe] do you have any comments about the substance of that post? Should Etsy sellers start screaming, or lie down and take it?

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

by: Volvo351 This user has validated their user name.

Wed Sep 9 09:26:31 2015

@Rexford

Apparently, Etsy ignored its paying customers and listened to The Hoe instead. After all, he has some fancy, overpriced MBA so he knows best. It used to be said that "The Customer is Always Right." To that we can add: "..except when some overpaid expert says he isn't!"

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

This user has validated their user name. by: iheartjacksparrow

Wed Sep 9 10:01:35 2015

"... are covered by Etsy Seller Protection."

If Etsy Seller Protection is anything like eBay's seller (non) protection, liar buyers can add another location to pick up free goodies. I wonder what kind of kick-back Etsy got for forcing PayPal on everyone accepting Direct Checkout?  

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

by: Rosered This user has validated their user name.

Wed Sep 9 12:01:37 2015

@sasikat9. I have long suspected that these sites are connected. Months back when an ebay notice said no duplicate listings no matter what other sites you sell on. I said to myself how would they know?

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

This user has validated their user name. by: The End

Wed Sep 9 12:52:37 2015

I've asked all the pertinent PayPal questions to Etsy Support, but they're not answering me.
So, I'll be departing before Christmas as my own website will show better in search when I close my Etsy shop.

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

This user has validated their user name. by: Ric

Wed Sep 9 14:29:02 2015

You kind of have to wonder how JD manipulated Etsy to make this move....

Did PayPal offer a kickback to Etsy or did they increase an existing kickback  in order to manipulate Etsy into making this move?

Perhaps, PayPal is managing Etsy's Direct Checkout system behind the scenes and threatened to pull support if they did not get the exclusive.

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

This user has validated their user name. by: Rexford

Wed Sep 9 14:50:48 2015

So is Chad integrating with PayPal for an impending sale to eBay?

Now THAT would explain it.

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

This user has validated their user name. by: Rexford

Wed Sep 9 14:52:59 2015

RCL says ""gay-married"? I would have blocked that one."

I wouldn't....huge disposable income....and I'm not a bigot.

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

by: sasikat9 This user has validated their user name.

Wed Sep 9 16:04:05 2015

Just like in the white house years ago.....All these sites are co-mingling in the closet and no one with half a brain or  more cares.

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

This user has validated their user name. by: iheartjacksparrow

Wed Sep 9 16:16:13 2015

The End writes: "I've asked all the pertinent PayPal questions to Etsy Support, but they're not answering me."

The only question you need to ask is, if a buyer pays with Direct Checkout (PayPal), and 179 days later the buyer files a SNAD claim, what will Etsy Seller Protection do?

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

by: comments This user has validated their user name.

Wed Sep 9 16:48:29 2015

I understand the sentiment of the sellers at etsy. Paypal is like a cancer that monopolizes and inserts itself under false pretenses of protection while charging exorbitant fees to fix problems it alone creates. The recent announcement from them about the merchant rate raises have left a bad taste in my mouth. This is something I intend to make paypal pay for. They do monopolize ebay payments but I refuse to use them elsewhere as a buyer or a seller wherever the option exists for me to do so. Yes paypal you will get an extra $200mo from me, but I  dropped you everywhere else in favor of amazon payments, stripe, and currently working on others.  

Perminate Link for Etsy Policy Unleashes Firestorm Against PayPal   Etsy Policy Unleashes Firestorm Against PayPal

by: FREDDY This user has validated their user name.

Wed Sep 9 16:52:00 2015

There was definitely money involved for Chad and others.  Etsy stock has not done well since going public.  So make it up anyway you can.  
Going to bed with Paypal is a death sentence to etsy.
I have pulled high price items from etsy last night.  Will not take a chance of getting ripped of like I did on ebay.  Enough is enough.
RIP etsy.

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