Revision History - Etsy Payments Policy
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Version Comments
A few clarifications throughout including changes to "Payment Accounts" and a new section on "Information on Cardholder Charges".
Changes to "Value-Added Tax (VAT)" and "Browsing Currency Considerations for Buyers".
Changes under "Country and Currency Options" and "Scheduled Deposits".
Changes to the Overview section and a new section has been added on the Use of Etsy Payments.
This document has been updated and renamed to the "Etsy Payments Policy"; Many new changes were made to the "Scheduled Deposits" section.
References to Android Pay have been added.
References to Etsy Studio added and changes to the "Third-Party Services" section.
Changes made to the "Standalone PayPal" section.
References to Android Pay have been removed.
Many sections have been updated including the addition of a new section entitled: "Appointment of Etsy as Limited Payment Collection Agent for Sellers".
Adyen added in the section on Third-Party Services.
Several new terminology and other changes throughout, including the addition of several new countries and their Direct Checkout Fees.
Sections updated: "Third-Party Services", "Deposits", and "Payment Processing Fees"; Other terminology updates.
Google Wallet references have been removed from this policy.
Sections updated: "Third-Party Services", "Standalone PayPal", "Country and Currency Options" and "Fee Amount".
The Deposits section has been reorganized and a new section called "Holds and Delays" has been added; Other clarifications throughout.
Several terminology changes have been made including a new section on PayPal.
A completely new version has been published.
Terminology changes related to Apple Pay.
Changes related to Google Wallet.
Some changes from the previous update on Oct 21 have been reversed and new changes were added to the "Shop Payment Account" section.
Terminology changes and link added to the Etsy App & Reader Terms of Use (new document).
This is the initial version that ParanoidPaul captured. It is not necessarily the first version of the document.
Indicates that the document has been updated silently, without a change to the posted "last modified" date!


	a. By using the direct checkout service (“Direct Checkout”) on (the “Site”) as a seller (“Seller” or “Sellers”) or a purchaser (“Buyer” or “Buyers”), you agree to be bound by this Etsy Direct Checkout Terms of Use Agreement (the “Agreement”). The Agreement is a legal agreement between you and Etsy, Inc., if you transact in United States Dollars, or Etsy Ireland, if you transact in a currency other than United States Dollars (collectively, “Etsy”). 

	b. In order to accept payments directly through the Site, Sellers must register for a Shop Payment Account (“Shop Payment Account”) and use Direct Checkout. Direct Checkout allows Sellers to accept authorized credit card transactions, bank transfers in specific countries, and transactions using the Google Wallet mobile payment service (collectively, "Payment Transactions"), have those funds credited to Seller’s Shop Payment Account, and have those funds subsequently deposited into Seller’s designated bank checking account (“Bank Checking Account”). Buyers may authorize a Payment Transaction with any major credit card accepted by Etsy, including Etsy Gift Cards, by bank transfer in authorized countries, or through Google Wallet. Etsy Gift Cards are prepaid credit cards; these transactions are handled in the same way as credit card transactions on Etsy and are subject to the Gift Card Terms of Use. Google Wallet is a third-party service provided by Google Inc. and is subject to the Google Wallet Terms of Service. 

	c. Etsy helps facilitate marketplace transactions and is not the purchaser of the Seller's goods. See the Etsy Terms of Use for more information. 

	d. Direct Checkout is generally available seven (7) days per week, twenty-four (24) hours per day, except for scheduled downtime due to system maintenance. 

	e. Direct Checkout is only available to Sellers who register (“Registered Seller”) and are approved for a Shop Payment Account. Sellers must be at least 18 years old to register for a Shop Payment Account. 

	f. Direct Checkout functionality may be made available, modified, or discontinued by us at any time without notice and is subject to the limitations in the Etsy Guidelines and the Etsy Terms of Use. 

	g. As a security measure, we may, but are not required to, impose transaction limits on some or all Buyers and Registered Sellers relating to the value of any transaction, deposit, or adjustment, the cumulative value of all transactions, deposits, or adjustments during a period of time, or the number of transactions per day or other period of time in accordance with Section 4d of this agreement. We will not be liable to Registered Seller: (i) if we do not proceed with a transaction, deposit, or adjustment that would exceed any limit established by us, or (ii) if we permit a Buyer to withdraw from a transaction. 

	h. We may refuse service to anyone, for any reason, at any time.

	a. Buyer may authorize a Payment Transaction with any major credit card accepted by Etsy, including Etsy Gift Cards, by bank transfer in authorized countries, or through Google Wallet. 

	b. By registering for Direct Checkout, Seller agrees always to comply with and to sell items in accordance with the Etsy Terms of Use. 

	c. The use of Direct Checkout must be solely for the sale of items listed on Etsy. Registered Seller agrees to ship sold item(s) once the Payment Transaction is complete and reflected in the Shop Payment Account. Etsy reserves the right to terminate Registered Seller’s access to Direct Checkout if Seller is determined to be using Direct Checkout for transfer of funds not related to the sale of items listed on Etsy. 

	d. Etsy reserves the right to decline Payment Transactions that we have reason to believe to be high risk, fraudulent, or in violation of this Agreement. 

	e. Etsy will bear the risk of credit card fraud (i.e. fraudulent purchase arising from the theft and unauthorized use of a third party's credit card information) occurring in connection with Payment Transactions. In the event Registered Seller is found to be complicit with any payment fraud, Etsy will not be liable. 

	f. Etsy maintains records associated with Payment Transactions and does not pass any secure data, including credit card numbers or bank account information to Registered Seller. Registered Seller will receive shipping information and limited Buyer account information as needed to complete the order. Use of this information is dictated by our Privacy Policy.

	a. Direct Checkout is only available to Sellers who register and are approved for a Shop Payment Account. A Shop Payment Account allows Registered Sellers to track payment amounts, refunds, and fees related to Payment Transactions.  Sellers must provide personal information as requested during registration, must provide us true and accurate information, and must maintain and update that information as applicable. Sellers will not impersonate any person or use a name he or she is not legally authorized to use. Seller authorizes us, and authorized agents, to verify his or her information (including any updated information) by accessing public records and to obtain credit reports about Seller in order to approve Seller for use of the Shop Payment Account. Registered Seller also authorizes us to verify his or her information from time to time while Registered Seller is using Direct Checkout.  

	The Shop Payment Account is available only to individuals who meet the terms of eligibility for the Etsy selling community and who have a valid credit card on file with Etsy, unless they are exempt from this requirement. Sellers who have bank accounts established in Austria, Germany, and the Netherlands are not required to have a credit card on file with Etsy to have a Shop Payment Account. 

	b. Etsy reserves the right to conduct periodic reviews of Registered Seller’s registration information and usage of Direct Checkout. 

	c. Registered Seller will resolve any dispute directly with Buyer or with the assistance of the dispute management and refund tools available on Etsy, and according to the guidelines outlined in Etsy’s Seller Guidelines. In the event of a dispute being escalated to Etsy’s customer Support Team, Etsy reserves the right to issue a refund to Buyer if transaction is found to be in violation of the Etsy Terms of Use or the Etsy Guidelines. In the event of chargebacks submitted by Buyer, Etsy will respond to credit card networks on behalf of Registered Seller; Registered Seller agrees to provide any requested information to us within five calendar days of the request. Etsy reserves the right to recoup funds associated with Buyer chargebacks in accordance with Section 5 of this Agreement. 

	 d. We will inform Registered Sellers of each Payment Transaction, or of other information  pertaining to Direct Checkout, using our standard communication procedures, including email or other messaging services associated with Registered Seller’s account. 

	e. Registered Sellers can access Payment Transaction information online in the Shop Payment Account. Registered Sellers may access the Shop Payment Account only with a browser that is compatible with Direct Checkout, including any security features that are a part of Direct Checkout. 

	f.  Sellers may provide refunds or adjustments to Buyers for their Payment Transactions made on Etsy using refund functionality enabled by Etsy and accessible through the Shop Payment Account. Funds to cover refunds will be deducted from Registered Seller’s Shop Payment Account balance. In the event of insufficient funds to cover the amount of the refund, Seller’s credit card on file will be charged.  

	If Seller is in a country where a credit card is not required to have Direct Checkout, the amount of the refund will be added to Registered Seller’s bill. 

	g. Fully refunded Payment Transactions may be eligible for cancellation in accordance with the customer service guidelines outlined in Etsy’s Seller Guidelines and this FAQ. 

	h. Etsy charges an applicable fee (“Payment Processing Fee”) (see Fees Policy) for processing each Payment Transaction. The fee amount will be assessed on the gross order amount, including shipping and tax (if applicable). The fee will be posted to the Shop Payment Account and will be deducted from the total amount of the Payment Transaction at the time the payment is considered complete as defined in Section 4a. We reserve the right to modify the Payment Processing Fee at any time pursuant to our Fees Policy. Any other fees included in Fees Policy remain applicable. In the event of any partial or full refunds credited back to Buyer in association with a Payment Transaction, the Payment Processing Fee and other applicable fees will be recalculated based on the adjusted sale price. The difference between the original Payment Processing Fee and the adjusted Payment Processing Fee will be applied to the refund amount being credited back to Buyer. Other applicable fees will be refunded on Registered Seller’s bill.

	a. All funds resulting from a completed Payment Transaction will be reflected as a balance in Registered Seller’s Shop Payment Account. Payment Transactions are considered complete once the payment is approved. Any refunds, adjustments, or other amounts paid to Buyers in connection with purchases, or for funds received since the last Payment Day, as defined in Section 4b, are also applied to Registered Seller’s Shop Payment Account balance. Funds in a Shop Payment Account balance are eligible for deposit (“Available Balance”) into Registered Seller’s Bank Checking Account at the end of any applicable deposit delay, reserve, or hold period as defined in Section 4d. 

	b. Available Balances can only be deposited into bank checking accounts in the United States, Australia, Austria, Belgium, Canada, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, and United Kingdom in the following currencies: USD, AUD, CAD, DKK, EUR, NZD, NOK, SEK, CHF and GBP. 

	c. We will initiate a deposit of Registered Seller’s Available Balance into Registered Seller’s Bank Checking Account every Monday ("Payment Date") for U.S. Registered Seller and every other Monday for Registered Sellers outside of the U.S. The Payment Date will fall on the next day Monday through Friday, excluding bank holidays (“Business Day”) if the scheduled Payment Date falls on a non-Business Day. If Registered Seller elects to change the scheduled Payment Date by using the tools provided by us in the Shop Payment Account, the following deposit will be made on the day selected by Registered Seller, and the next scheduled deposit will continue to be on the following Monday. When Registered Seller either initially provides or later changes his or her bank account information, Registered Seller must wait at least five (5) calendar days to request a deposit into Registered Seller’s Bank Checking Account. The next scheduled deposit after a change to Bank Checking Account information will occur on the next scheduled Monday after a period of five (5) calendar days from the date of the requested change. Deposits into Registered Seller's Bank Checking Account will generally be credited within three (3) to five (5) Business Days of the date we initiate the transfer. 

	d. If we reasonably conclude based on information available to us that Registered Seller's actions and/orperformance in connection with Direct Checkout may result in Buyer disputes, chargebacks, or other claims, then we may, in our sole discretion, put into effect a hold, deposit delay, or reserve associated with Registered Seller’s Shop Payment Account balance. A hold may be put on funds associated with a particular Payment Transaction in the event of disputes or investigations associated with the order for the shorter of: (a) 180 days after the estimated delivery date; or (b) completion of any investigation(s) regarding any Registered Seller actions and/or performance in connection with the Payment Transaction. Deposit delays are defined as the number of days between a sale and the day the net amount from the sale becomes available for deposit, provided the payment has been completed as defined in Section 4a. A deposit delay may be between 0 and 180 days. A deposit delay is applied across all Payment Transactions for Registered Seller and the number of days is reflected in each Registered Seller’s Shop Payment Account. A reserve is defined as a fixed percentage of Registered Seller’s Shop Payment Account balance delayed prior to being included as part of Seller’s Available Balance for a period of up to 180 days. All holds, deposit delays, and reserves will be communicated to Registered Seller by email or a notice on the Site. We will not be liable to Registered Seller if we act in accordance with the provisions of this Section. 

	e. In the event funds cannot be deposited into Registered Seller’s Bank Checking Account, the funds will be made available in Registered Seller’s Shop Payment Account balance. Registered Seller will be required to update his or her Bank Checking Account information.

	a. We reserve the right to seek reimbursement from Registered Seller if we, in our sole discretion, provide a refund to Buyer if Registered Seller cannot promptly deliver the goods, or if we discover erroneous or duplicate transactions, receive a chargeback from Buyer's credit card issuer or reversal of payment for the amount of Buyer's purchase from Registered Seller, or Registered Seller otherwise does not act in accordance with Etsy's General or Seller Guidelines. 

	b. We may obtain reimbursement of any amounts owed by Registered Seller to Etsy by deducting from future payments owed to Registered Seller, reversing any credits to Registered Seller’s Shop Payment Account balance, charging Registered Seller's credit card on file, charging Registered Seller’s bill, or seeking such reimbursement from Seller by any other lawful means, including collections. You authorize us to use any or all of the foregoing methods to seek reimbursement, including the charging of your credit card or debiting from your checking account. 

	6. FEES  

	a. Payment processing fees vary by domicile of Registered Sellers bank and are applied to each order completed via Direct Checkout. This fee is assessed on the total amount of the sale, including tax and shipping. Unlike other fees, this processing fee is deducted from the transaction amount as the funds become available for deposit. Payment processing fees will be reflected in your Shop Payment Account.
 Payment processing fees by Registered Seller’s bank account country: 


		Australia (domestic orders)
 		3% + 0.25 AUD

		Australia (international orders)
 		4% + 0.25 AUD

 		4% + 0.30 EUR

 		4% + 0.30 EUR

		Canada (domestic orders; orders from the US)
 		3% + 0.25 CAD

		Canada (international orders)
 		4% + 0.25 CAD

 		4% + 2.50 DKK

 		4% + 0.30 EUR

 		4% + 0.30 EUR

 		4% + 0.30 EUR

 		4% + 0.30 EUR

 		4% + 0.30 EUR

 		4% + 0.30 EUR

 		4% + 0.30 EUR

 		4% + 0.30 EUR

 		4% + 0.30 EUR

		New Zealand (domestic orders)
 		3% + 0.30 NZD

		New Zealand (international orders)
 		4% + 0.30 NZD

 		4% + 2.50 NOK

 		4% + 0.30 EUR

 		4% + 0.30 EUR

 		4% + 3.00 SEK

 		4% + 0.50 CHF

		United Kingdom
 		4% + 0.20 GBP

		United States
 		3% + 0.25 USD

	 b. When listing in a currency other than Registered Seller’s bank account currency, Etsy will convert the Available Balance to the Registered Seller’s bank currency on Seller’s behalf, which is reflected in the Shop Payment Account. When a conversion is required, Etsy applies 2.5% to the current market rate. Conversion rates are updated hourly. 

	c. When buying from a Registered Seller who lists in a currency other than the Buyer’s browsing currency, Etsy will convert the listing price on the Buyer’s behalf. When a conversion is required, Etsy applies 2.5% to the current market rate. Conversion rates are updated hourly.  

	a. For U.S. Registered Sellers, Internal Revenue Service (“IRS”) regulations require that U.S. third-party settlement organizations and payment processors, including Etsy, file Form 1099-K to report unadjusted annual gross sales information for sellers that meet both of the following thresholds in a calendar year (reporting): 

	1.     More than $20,000 in gross sales, and 

	2.     More than 200 transactions. 

	As a result of these regulations, Registered Sellers who approach 150 (one hundred and fifty) transactions in a calendar year, regardless of sales volume and aggregated across his or her Shops, will be required by Etsy to provide taxpayer-identification information and will be notified via email and through other communication channels available on Etsy.

	a. All notices will be sent by e-mail or will be posted on the Site or by any other means then specified by Etsy. We will send notices to Registered Seller at the e-mail address maintained in Etsy’s records for Registered Seller. Registered Seller will monitor his or her e-mail messages frequently to ensure awareness of any notices sent by us and otherwise agrees to the notification clause in the Etsy Terms of Use. Registered Seller will send notices to us using the functionality for contacting Etsy provided in our Help Section. 

	b. In the United States only, we may earn interest or other compensation from the balances in our bank accounts that result from the timing difference between our being paid by Buyers and our bank account being debited to pay Shop Payment Account Available Balances to Registered Sellers. 

	c. Outside of the United States, we may employ a third party to facilitate payment services, including the holding, crediting and debiting of funds. 

	d. Registered Seller may terminate acceptance of credit card and Etsy Gift Card payments through Direct Checkout at any time by adjusting his or her Shop Settings and we may terminate Registered Seller’s use of Direct Checkout without notice to Seller. Upon termination, any non-disputed available balance will be deposited into a Registered Seller’s Bank Checking Account and Seller will still have access to his or her Shop Payment Account. We reserve the right, upon termination of access to Direct Checkout, to set off against any payments to be made to Registered Seller, an amount determined by us to be adequate to cover any anticipated chargebacks, refunds, adjustments or other amounts paid to Buyers in connection with purchases from Registered Seller's Shop Payment Account for a prospective 180-day period. At the end of such 180-day period following termination, we will disburse to Registered Seller any amount not used to offset chargebacks, refunds, adjustments, or such other amounts paid to Buyers, or seek reimbursement from Registered Seller via any of the means authorized in Section 5 above for any additional amount required to offset chargebacks, refunds, adjustments, or other amounts paid to Buyers, as applicable. Refer to the Etsy Terms of Use for information regarding termination of Seller’s accounts.
Effective Date: January 09, 2014.
Etsy reserves the right to alter these policies at any time.

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