Revision History - Etsy Payments Policy
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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.
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	Etsy’s Direct Payments service allows buyers and sellers to use various forms of payment on Etsy’s website, mobile apps, and other services. Direct Payments users can pay with and accept payment by credit card, debit card, Etsy gift card, some bank transfer services, PayPal, Apple Pay, Google Wallet, and the Sell on Etsy Reader—all in their local currencies. This policy explains all of your rights and obligations when using Direct Payments.  

	This policy is a part of our Terms of Use. By using Direct Payments, you’re agreeing to this policy and our Terms of Use. 

	1. Accepting These Terms
2. Overview
3. Third-Party Services
4. Etsy's Rights and Responsibilities
5. Seller Rights and Responsibilities
6. Deposits
7. Recoupment
8. Payment Processing Fees
9. Reporting Obligations
10. Termination  


	This document (the Direct Payments Policy or the “Policy,” for short) sets out your rights and responsibilities when you use Direct Payments on Etsy’s services (we’ll refer to our website, mobile apps and other services as our “Services”), so please read it carefully. By using Direct Payments, you’re agreeing to the Policy. 

	The Policy is a legally binding contract between you and Etsy (actually, if you transact in United States Dollars, the contract is between you and Etsy, Inc.; if you transact in any other currency, the contract is between you and Etsy Ireland; but we’ll just refer to Etsy, Inc. and all of its subsidiaries collectively as “Etsy”). 

	The Direct Payments Policy is also a part of our Terms of Use. By using any of our Services, you’re agreeing to the Terms of Use. 


	Direct Payments allows sellers to (a) accept payment by authorised credit and debit card transactions, some bank transfers services, PayPal and transactions using the Google Wallet and Apple Pay mobile payment services, (b) have those funds credited to a seller’s Shop Payment Account with Etsy, and (c) have those funds deposited into a seller’s designated bank account. 

	Direct Payments is only available to sellers who are at least 18 years old who register and are approved for a Shop Payment Account with Etsy. 

	Sellers may only use Direct Payments for the sale of items listed on Etsy’s Services, and agree to ship sold items once a payment transaction is complete and reflected in their Shop Payment Account. Etsy reserves the right to terminate a seller’s access to Direct Payments if the seller uses Direct Payments in any other manner. 

	Buyers may authorise a payment with any major credit or debit card accepted by Etsy, with Etsy Gift Cards, by certain bank transfer services, or through PayPal, Google Wallet or Apple Pay. 


	Etsy has engaged third-party service providers to perform many of the services related to payment processing, including card processing, currency exchange, identity verification, fraud analysis and regulatory compliance. 

	Etsy partners with WorldPay, PayPal and other licensed payment processors to facilitate card payments and other payments by buyers and to disburse funds to sellers. The WorldPay and PayPal entities are regulated and authorised to provide payment services in the countries where they operate. 

	Etsy may share your personal or transactional information with those third-party service providers when it's necessary to process payments.  

	Etsy Gift Cards are prepaid credit cards subject to the Gift Cards Policy. 

	By using a third-party service, you may also be subject to an agreement with the third-party. For example, Google Wallet is a third-party service provided by Google Inc.; if you register to use Google Wallet, you may be subject to the Google Wallet Terms of Service. PayPal is a third-party service provided by PayPal Holdings, Inc., and is subject to the PayPal User Agreement. Apple Pay is a third-party service provided by Apple Inc. and is subject to the Apple Pay Terms and Conditions. 

	If Etsy receives notice that a listing or transaction violates a third party’s service agreement, we may have to take action against your account, such as cancelling a transaction, removing listings from your shop, or suspending your selling privileges.  


	Etsy supports two versions of PayPal: integrated PayPal and standalone PayPal. 

	INTEGRATED PAYPAL. Integrated PayPal allows sellers to receive funds from PayPal purchases directly into their Etsy Shop Payment Account, without the need to manage a separate PayPal account. This means that if a buyer pays with PayPal, the funds from the order will be deposited into a seller's Shop Payment Account along with the rest of the orders. The standard Direct Payments Payment Processing Fee (described below) applies to orders that go through integrated PayPal; there is no additional PayPal fee. 

	STANDALONE PAYPAL. For sellers accepting standalone PayPal, you will receive funds from PayPal purchases directly into your PayPal account. This payment method exists for sellers in countries that are not yet eligible for Direct Payments and for sellers in certain countries who have opted to continue receiving funds into their standalone PayPal accounts. Sellers who accept standalone PayPal will continue to pay PayPal fees. Orders paid through standalone PayPal are not covered by Etsy’s Seller Protection Program. Please note, in certain circumstances where a seller accepts Direct Payments and standalone PayPal, it may be necessary for Etsy to process some PayPal transactions through integrated PayPal. For example, if a buyer chooses to pay with an Etsy Gift Card and covers the remaining balance using PayPal, Etsy can only process the transaction through integrated PayPal. 


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

	As a security measure, we may impose transaction limits on buyers and sellers. For example, we may impose limits relating to the value of any transaction, deposit, or adjustment, or limits relating to the cumulative value of all transactions, deposits, or adjustments during a period of time. We may also impose limits related to the number of transactions per day or other period of time. We will not be liable to a seller: (a) if we do not proceed with a transaction, deposit, or adjustment that would exceed any limit established by us, or (b) if we permit a buyer to withdraw from a transaction. 

	Etsy may refuse service of Direct Payments to anyone, for any reason, at any time. 

	Etsy reserves the right to decline transactions that we believe to be high risk, fraudulent, or in violation of Etsy’s Terms of Use. 

	In the event that a buyer does not make payment for the purchase of a legitimate item sold using Direct Payments (e.g., where the buyer used a stolen or unauthorised credit card), Etsy may provide limited payment protection to the seller, in the interest of fairness. You can learn more about our Seller Protection Programme here.  

	Etsy maintains records associated with transactions on Direct Payments and does not pass any secure data, including credit card numbers or bank account information to any sellers. Sellers will only receive shipping information and limited buyer account information necessary to complete the order. Etsy’s Privacy Policy further explains how Etsy handles user information. 

	Etsy will send you any relevant notices regarding your use of Direct Payments in accordance with our Electronic Communications Policy. 


	A. SHOP PAYMENT ACCOUNTS. Direct Payments is only available to sellers who register and are approved for a Shop Payment Account. A Shop Payment Account allows sellers to track payment amounts, refunds, and fees related to transactions. Sellers must provide accurate personal information as requested during registration, and are responsible for maintaining and updating that information as necessary. Sellers will not impersonate any person or use a name he or she is not legally authorised to use. Sellers authorise us, and authorised agents, to verify their information (including any updated information) by accessing public records and obtaining credit reports about the sellers in order to approve a Shop Payment Account. Sellers also authorise Etsy to verify the sellers’ information from time to time while the sellers are using Direct Payments. Etsy verifies sellers’ information in order to safeguard the integrity of the marketplace and reduce the risk of fraud, money laundering, terrorist financing, and the violation of trade sanctions.  

	Shop Payment Accounts are only available to individuals who are eligible to be sellers on Etsy’s services and who have a valid credit or debit 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. DISPUTES. Sellers agree to resolve any disputes directly with a buyer or with the assistance of the dispute management and refund tools available on Etsy, and in accordance with our Seller Policy and Terms of Use. In the event that a dispute is escalated to Etsy’s Support Team, Etsy reserves the right to issue a refund to a buyer if a transaction is found to be in violation of Etsy’s Seller Policy and Terms of Use. 

	In the event that a buyer submits a chargeback, Etsy will respond to the credit card networks on behalf of the seller involved in the transaction; the 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.  

	C. COMMUNICATIONS. We will inform sellers of each transaction, or of other information pertaining to Direct Payments, using our standard communication procedures (detailed in our Electronic Communications Policy), including by email or through Etsy's Conversations tool. 

	D. REFUNDS. Sellers may provide refunds or adjustments to buyers for payments made through Direct Payments using the refund functionality in their Shop Payment Account. Funds to cover refunds will be deducted from the seller’s Shop Payment Account balance. If there are insufficient funds to cover the amount of the refund, the balance will be charged to the seller’s credit card or added to the seller’s Etsy bill. 

	Fully refunded transactions may be eligible for cancellation in accordance with the Seller Policy and this Help article. 

	E. INTERNATIONAL TRADE LAWS. You agree that your use of Direct Payments will not involve any countries, entities, individuals or items prohibited by sanctions, embargoes, regulations or orders administered by the US Department of Treasury’s Office of Foreign Assets Control (“OFAC”) or other government agencies. 


	A. SHOP PAYMENT ACCOUNT. All funds resulting from a completed transaction will be reflected as a balance in a seller’s Shop Payment Account. Transactions are considered complete once the payment is approved by Etsy or our fraud analysis service provider. Any refunds, adjustments, or other amounts paid to buyers in connection with purchases, or for funds received since the last payment day, are also applied to the seller’s Shop Payment Account balance. 

	Funds in a Shop Payment Account balance are eligible for deposit (the “Available Balance”) into a seller’s bank account at the end of any applicable deposit delay, reserve, or hold period as determined by the seller’s bank. 

	B. COUNTRY AND CURRENCY OPTIONS. Available Balances can only be deposited into bank accounts in the United States, Australia, Canada, the European Union, New Zealand, Norway, and Switzerland in the following currencies: USD, AUD, CAD, CHF, DKK, EUR, GBP, NZD, NOK, and SEK. 

	C. SCHEDULED DEPOSITS. Etsy will instruct our payments partners to initiate a deposit of a seller’s Available Balance into the seller’s bank account every Monday ("Payment Date") for sellers located in the United States and every other Monday for sellers outside of the US. Deposits into a seller’s bank account will generally be credited within three (3) to five (5) business days from the date Etsy initiates the deposit request. The actual timing of the deposit may depend on how quickly a seller’s bank processes the request. 

	The Payment Date will fall on the next day business day (Monday through Friday, excluding bank holidays) if the scheduled Payment Date falls on a non-business day. If a 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 initiated on the day selected by the seller, and the next scheduled deposit will continue to be on the following regularly scheduled Monday. When a seller either initially provides or later changes his or her bank account information, the seller must wait at least five (5) calendar days to request a deposit into a bank account as a security precaution. The next scheduled deposit after a change to bank account information will occur on the next scheduled Monday after a period of five (5) calendar days from the date of the requested change.  

	D. HOLDS AND DELAYS. In some cases, deposits to sellers’ bank accounts could be temporarily delayed by an issue at Etsy, at Etsy’s third-party service providers, or at a seller’s bank. We’ll do our best to communicate with the affected sellers as soon as we can.  

	If we believe that a seller's actions may result in buyer disputes, chargebacks, or other claims, then we may, in our sole discretion, put (1) a hold, (2) a deposit delay, or (3) a reserve on the seller’s Shop Payment Account balance.  

	A hold may be put on funds associated with a particular transaction if there is a dispute or investigation related to the order, for the shorter of: (a) 180 days after the estimated delivery date; or (b) completion of any investigation regarding the seller’s actions.  

	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. A deposit delay may be between 0 and 180 days. A deposit delay is applied across all transactions for a seller and the number of days is reflected in each seller’s Shop Payment Account.  

	A reserve is defined as a fixed percentage of a seller’s Shop Payment Account balance delayed prior to being included as part of a seller’s Available Balance for a period of up to 180 days.  

	If Etsy places a hold, a deposit delay or a reserve on a seller’s account, we’ll do our best to communicate with the affected seller as soon as we can.  

	We always work hard to avoid and minimise any delays. However, please note that Etsy is not obligated to refund any fees or reimburse any expenses due to holds or delayed deposits. 

	E. ESCHEATMENT. If funds cannot be deposited into a seller’s bank account, the funds will be made available in the seller’s Shop Payment Account balance. It is the seller’s sole responsibility to update his or her bank account information to receive the funds. If a seller fails to update the information to claim the funds within a certain period of time, Etsy will escheat the funds to the relevant government authority in order to comply with escheatment laws. 


	A. We reserve the right, in our sole discretion, to seek reimbursement from a seller in any of the following circumstances: (a) we provide a refund to a buyer because a seller did not promptly deliver the goods, (b) we discover erroneous or duplicate transactions related to a seller, (c) we receive a chargeback from a buyer's credit card issuer or reversal of payment for the amount of a buyer's purchase from a seller, or (d) a seller does not act in accordance with Etsy’s Terms of Use or any policy thereunder. 

	B. We may obtain reimbursement of any amounts owed by a seller to Etsy by deducting from future payments owed to the seller, reversing any credits to the seller’s Shop Payment Account balance, charging the seller's credit card on file, charging the seller’s bill, or seeking reimbursement from the seller by any other lawful means, including by using third-party collections services. You authorise us to use any or all of the foregoing methods to seek reimbursement. 


	A. OVERVIEW. Etsy charges a fee (the “Payment Processing Fee”) for processing each transaction through Direct Payments. The fee amount will be assessed on the gross order amount, including shipping and tax (if applicable). Payment Processing Fees will be reflected in your Shop Payment Account. Unlike other fees charged by Etsy, the Payment Processing Fee will be deducted from the total amount of the payment at the time the payment is considered complete. We reserve the right to modify the Payment Processing Fee at any time. In the event of any partial or full refunds credited back to a buyer, 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 the seller. Other applicable fees will be refunded on the seller’s bill. 

	B. FEE AMOUNT. Payment Processing Fees vary based on the location of a seller’s bank account. 

	Payment Processing Fees by 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

 		4% + 0.30 EUR

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

		Canada (international orders)
 		4% + 0.25 CAD

 		4% + 0.30 EUR

 		4% + 0.30 EUR

		Czech Republic
 		4% + 0.30 EUR

 		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

 		4% + 0.30 EUR

 		4% + 0.30 EUR

 		4% + 0.30 EUR

		The Netherlands
 		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% + 0.30 EUR

 		4% + 0.30 EUR

 		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

	C. CURRENCY CONVERSION. When a seller lists items in a currency other than the currency of the seller’s bank account, Etsy will convert the Available Balance to the seller’s bank currency on the Seller’s behalf, which is reflected in the Shop Payment Account. When a conversion is required, Etsy applies 2.5% to the current market exchange rate. When buying from a 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 exchange rate. 

	Conversion rates are updated hourly. 

	D. INTEREST. In the United States, Etsy 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 sellers. 


	Internal Revenue Service regulations require that we file a Form 1099-K to report unadjusted annual gross sales information for sellers located in the United States that meet both of the following thresholds in a calendar year (reporting): 

	A. More than $20,000 USD in gross sales, and
 B. More than 200 transactions. 

	To comply with these regulations, 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 to provide taxpayer-identification information to Etsy. 


	Sellers may terminate this contract and their acceptance of Direct Payments at any time by adjusting the Settings in their account with Etsy. Etsy may also terminate or suspend a seller’s use of Direct Payments at any time. 

	Upon termination, any non-disputed available balance will be deposited into a seller’s bank account. Etsy reserves the right, upon termination of access to Direct Payments, to set off against any payments to be made to the seller, an amount determined by us to be adequate to cover any anticipated chargebacks, refunds, adjustments or other amounts that might be paid to buyers in connection with purchases from the seller's Shop Payment Account for a prospective 180-day period. At the end of the 180-day period following termination, we will disburse to the seller any amount not used to offset chargebacks, refunds, adjustments, or such other amounts paid to buyers, or seek reimbursement from the seller via any of the means authorised in this Policy for any additional amount required to offset chargebacks, refunds, adjustments, or other amounts paid to buyers, as applicable. 

	Last updated on 12 Feb, 2016

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