Direct Checkout is now "Etsy Payments"

Etsy made a big announcement on April 11, 2017

Etsy’s payment platform has changed. Etsy announced that Direct Checkout is now called "Etsy Payments." According to Etsy, here are some benefits:

• More flexible deposits (daily, weekly, twice monthly, or monthly)
• EP allows shops to accept ten payment methods
• Multiple shop check out

Can you keep your PayPal sales separate?

Yes, standalone PayPal is still permitted. Of course, Etsy recommends integrating your PayPal account.

Do you have to do anything?

If you already have Direct Checkout, you are automatically enrolled. If you do not accept payments via Direct Checkout, you must get on board by May 17, 2017. If not, your shop will be suspended.

The "update settings" button is displayed prominently.

The fine print

Etsy Payments fee structure

The fee to use the payment service remains the same: 3% + 0.25 USD for each sale (may differ in your country). This is in addition to your Etsy selling fees.

Some countries require a minimum amount of funds for daily disbursement. For the USA and Canada, the minimum is $25. That means that if you were to arrange for daily withdrawals, it will not happen if there is under $25 in the account. (For countries using the Euro, the minimum is 20 Euros.)

Non-USA sellers may have to pay more in conversion fees to move their money between countries.

Sellers do not have to participate if EP is not offered in their country. Etsy plans to add more countries, including Turkey.

You must have your last name on file with Etsy Payments. Check here to make sure. You must have a bank account to deposit your EP funds. "We cannot process Etsy Payments (debit/credit card, gift card, etc.) funds to your PayPal account."

If a buyer uses multi-shop checkout, EP will be used even if the buyer paid with PayPal.

If there is an issue with EP, "an Etsy employee will be able to mediate." That is big news from a company with notoriously few customer service agents.

Since the WorldPay fiasco, there is this. "Note: 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. ... Etsy is not obligated to refund any fees or reimburse any expenses due to holds or delayed deposits."

Sellers not based in the US will now be charged conversion fees. This does not happen with Paypal; for some large sellers this could be an issue.
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Etsy is still on the move. Sellers need to hang on tight.