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Fri Jan 1 2016 10:25:57

Questions about Etsy's New PayPal Requirements

By: Reader

Sponsored Link

Dear Ina,


What are the implications of the changes in Etsy policy with respect to PayPal? Does it impede commerce by small sellers who only sell in Etsy? 

Does it affect those who are thinking of selling in Etsy? Does it raise costs or require a lot of labor to accommodate this change?
Regards,
C. (whose son sells online in Etsy)

Note from the Editor: Sellers had plenty to say about the policy in this September 8th EcommerceBytes Blog post, and you can find additional coverage in the following EcommerceBytes Newsflash articles:

Etsy Forces PayPal on Direct Checkout Option (Sep 9, 2015) - link to article

Etsy Responds to PayPal Integration Concerns (Sep 10, 2015) - link to article

Etsy Makes Checkout with PayPal Mandatory in New Shops (Oct 1, 2015) - link to article




Comments (9) | Permalink

Readers Comments

Questions about Etsy's New PayPal Requirements   Questions about Etsy's New PayPal Requirements

by: sasikat9 This user has validated their user name.

Fri Jan 1 19:39:28 2016

Conform to the master or leave...No other choice.

Questions about Etsy's New PayPal Requirements   Questions about Etsy's New PayPal Requirements

This user has validated their user name. by: Marie

Fri Jan 1 19:44:16 2016

For me, I can't think of a good reason to allow Etsy to process my PP payments.  I realize they say they will be responsible for any chargebacks, but those don't happen often enough to justify not having my own PP account.

I realize that some sellers that may never have had a PP account before are reluctant to have one now, but overall PP does a very good job.  Yes there are horror stories, there will always be those with any company.  But overall they do a good job.

Questions about Etsy's New PayPal Requirements   Questions about Etsy's New PayPal Requirements

by: Volvo351 This user has validated their user name.

Sun Jan 3 09:07:38 2016

@Marie

What do you mean when you say etsy will be "responsible for any chargebacks?" Does that mean they'll cover them? eBay doesn't...they make the seller eat it.

Questions about Etsy's New PayPal Requirements   Questions about Etsy's New PayPal Requirements

This user has validated their user name. by: Marie

Sun Jan 3 13:41:51 2016

@volvo350

I should have clarified that a little more.

First, as to Ebay.  Ebay is not collecting the money into their PP account and then distributing to sellers.  Ebay has nothing to do with a chargeback, so they have nothing to do with 'making you eat it'.  

Etsy on the other hand, for those that choose to participate, is handling the money.  If you sign up for it, you can have Etsy collect the money in their PP account and then they distribute it to the individual sellers.

Etsy rules on this state that they will handle all chargebacks.  They will mediate.  Not really sure how that works and I have no intention of finding out.  I much prefer having my own PP account.

https://www.etsy.com/help/article/28903169295

Questions about Etsy's New PayPal Requirements   Questions about Etsy's New PayPal Requirements

by: epuise This user has validated their user name.

Mon Jan 4 00:33:31 2016

By handling the payments, Etsy has all the info. should a claim arise: Seller info., Buyer info., Listing Info., Shipping info. Harder for Buyer to claim 'unauthorized use' on Etsy if items ship to their Etsy address, n'est pas ?

Questions about Etsy's New PayPal Requirements   Questions about Etsy's New PayPal Requirements

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

Mon Jan 4 01:54:28 2016

Paypal has working phone lines whereas Etsy requires sellers to request a call. I fail to understabd how anyone would allow another entity any sort of control of their monies without such a simple service as phones.

Questions about Etsy's New PayPal Requirements   Questions about Etsy's New PayPal Requirements

This user has validated their user name. by: Marie

Mon Jan 4 01:57:18 2016

@epuise

I don't understand.  How could that possibly make a difference?  All that same information is available even if Etsy doesn't handle the PP payment.  Etsy doesn't have any additional information.  All that same information the seller has so they can do it themselves.

The only difference is that if you choose to have Etsy's PP account process your payments, then you have the payment delay and they will handle any claim or chargeback that comes along.  They may or may not include you in the process, that is completely up to them.  They make that decision.

Why someone would choose to have no control over this process is something I don't understand.  It is not a big deal, or doesn't have to be a big deal, to have your own PP account.  Claims and chargebacks are not that frequent.

Questions about Etsy's New PayPal Requirements   Questions about Etsy's New PayPal Requirements

by: flybuy This user has validated their user name.

Mon Jan 4 15:48:24 2016

I had a case with a buyer in China and Etsy closed the case and apparently told the buyer to open a paypal case which she did.  Paypal told her she would get her money after she sent the item back in the same condition to the seller. I called Paypal (who already put a hold on the funds) and they said the buyer has 10 days to upload a tracking number or they close the case in my favor.  
I think Etsy wants Paypal to resolve these cases so they do as little as possible.  

Questions about Etsy's New PayPal Requirements   Questions about Etsy's New PayPal Requirements

This user has validated their user name. by: Marie

Mon Jan 4 15:55:56 2016

@flybuy

It doesn't work that way.  Paypal does NOT step in and resolve a case like you had.  

For it to happen the way yours did, you must be signed up to have Etsy process your PP payments [meaning you don't use your own PP account].  Per the Etsy rules on this, they work with PP/Buyer to resolve claims.  They may or may not contact the seller at all.  

But PP does not tell a buyer to return for refund.  That had to be Etsy that did that.

AS for Etsy telling the buyer to refile with PP, I find that disturbing.  The buyer should have the option of where they want to file.  



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