Direct Check Out

[Former_Member]

So, as everyone probably got the email, I am curious if anyone here as actually jumped on the Direct Check Out bandwagon...?

I looked at the page briefly today, and I couldn't see any real benefits to signing up. I was hoping someone here could tell me their legitimate experiences instead of the Etsy's attempt in the email.

Thank you in advance!

[Former_Member]

I signed up a little while ago and immediately got a sale thru it. It's one less step for the customer, which is a good thing. But, it goes into my checking account which is annoying, because I have been using my PayPal account as my business account, to keep things separate. Now, I will have to transfer funds which is easy, but takes 3-5 days. Also, I read somewhere that it costs us more when people use Direct Check Out (as opposed to PayPal) ? Can someone verify this?

I know DaisyDesignShop uses Direct Check Out and has gotten a lot of sales thru it, hopefully she will respond to this. As well as others!

[Former_Member]

Found the fees for direct checkout:

When using direct checkout as a payment method, Etsy will charge a payment processing fee of 3% + $0.25 USD per order. This amount will be applied to the total sale price including shipping and sales tax. It will also be in addition to the existing transaction and listing fee applied to your items. The payment processing fee will be deducted from the sale price when it becomes available for deposit into your bank account. You can view these fees on any completed transaction by going to Your Shop > Shop Payment Account. This fee will not appear on your Etsy bill.

Please keep in mind that this fee is only applied to purchases made using direct checkout. If you issue any refunds for sales made through direct checkout, a portion of the payment processing fee will be refunded back to you and the transaction fee will be credited back to your account. This is dependent on the amount of the refund.

[Former_Member]

I have not signed up for it yet because I too want to know more. One of my team members from another team has been using it.
She said the fees are not that much more than Paypal- however, the money does not go into your account until the item has been shipped.
Which is great protection for buyers- but for a starving artist that is on such a tight budget and needs the payment to send the order...it sucks.

So if you are a starving artist- and plan on using sirect checkout, take $20 and hide it. That's your shipping money.

[Former_Member]

Thanks Kitti, I had read that, that's why I wanted to know more than just jumping on the boat because Etsy says there are more sales because. I know Samantha has also gotten sales, but it seems like the established stores are seeing an increase. I wasn't so sure how it would help a newbie like me. Especially since I have recently fallen off the wagon of consistent and good promotion.

dragonsmoon: Good tip about the money. I have still been setting up bank accounts so that information is good to know. Thankfully, I haven't reached starving artist phase, but if my husband sees me buying more beads again...Who knows. ;)

[DaisyDesignShop]

I signed up for direct checkout the week it went live and since then, approximately half of my sales are from customers using that option. That doesn't necessarily mean that those sales wouldn't have happened anyway, but it's obvious that these customers prefer the ease of using their credit card directly on Etsy. I have also had a surprisingly large number of customers who don't have a paypal account and aren't interested in setting one up.

From what I can tell, the fees from a direct checkout sale are sometimes actually LESS than the fees from a paypal sale. They are almost exactly the same most of the time. For example, I often sell address labels for $7.75. My total expenses (including fees) from a paypal sale are $1.60. The exact transaction from a direct checkout has expenses equal to $1.56.

For me, the checking account deposit doesn't matter because that's what I end up doing for my paypal money anyway, so it actually saves me a step. I use a spreadsheet to keep track of all of my business money, so for me it doesn't matter where it goes in the end.

[DaisyDesignShop]

For anyone who still needs some info about Direct Checkout, I just received an Etsy email saying there will be a live online lab about the process. Click on this link and scroll down to RSVP to the event: http://www.etsy.com/community/online-labs

:)

[Former_Member]

I've had previous potential customers email me to see if they could make credit card purchases because all I accepted was Paypal. Now that ETSY has the direct checkout, I'm signing up! I did read however, that it takes up to 10 days to get it working in your shop. If past credit card inquiries are any indication as to the customers preferences, then it will be a welcome upgrade to my shop! And the fees are not that much different from Paypal.

[DaisyDesignShop]

Hi Roanne! If I remember correctly once you sign up you can immediately start taking credit card payments, but there is a 10-day hold on the funds before you can access them, just the first time. After that, the waiting period is typically only about 2 days while they transfer money to your account.

[tinymishaps]

I haven't done it yet. I like having one primary income source, paypal, and I don't feel like all the bugs have been worked out of DC yet. If they'd done it form the beginning, I think it'd be different. Now that they are processing money directly, will we all need to be registering and paying sales tax for any state they operate in? I also don't like that it's not integrated with shipping, I can't use the money directly for anything and that the fees go on top of shipping and sales tax.

Is there a way to download all your data into a csv so you can compile total price, sales tax and then fees? I'd certainly need that if I were to use it.

I almost wish they'd integrated square or something so I could just link existing accounts instead of making a new one, and get the lower rate.

I feel like one of the reasons people are using it, is that I've heard etsy made it into a giant USE YOUR CREDIT CARD button that is the primary checkout if you have it and then has another option that just says pay with paypal. It'd be nice for the rest of us if the paypal button made it very clear that it was a way to pay with a cc too.

[Former_Member]

Personally, I would rather have all transactions in one "system" but I signed up because I don't want to miss any potential sales through direct checkout!

With Paypal I love the shipping. I can just print the label and deduct the shipping from what I just got paid. I can also ship first-class, which I do a lot of with jewelry items. With direct checkout, if I want to print a label I have to use USPS online and you can only ship priority or express online - not first class.

But with Direct Checkout, I love the fact that I may reach customers who don't understand that you can pay with a credit card with Paypal without having a Paypal account. Some people just don't know that.

Pros and Cons with both!

Maxy;)