3 day wait - is payment at risk?

[CobwebCorner]

I know there are lots of threads on this and I don't mind the wait but I would like to understand somthing.

Etsy has explained that money is held for 3 days before its available to us to reduce risk.

I very often ship my items the same or next day. So - is my payment from Etsy at risk if I ship before that 3-day wait period.

Is Etsy advising we should wait 3 days before shiipping? I'm sure they are trying to avoid obvious fradulent charges - especially stolen credit cards. But what does that mean if we've shipped and then something comes up in the 3 day wait period??

I'm am known for super fast shipping and I would hate to wait for 3 days on every order to just to make sure my payment is safe.

[OriginalsbyLauren]

nope, not at risk, as soon as we get the email we are good to go.

[Former_Member]

I am still shipping next day after payment is received. I believe if there is any issues with the payment it will show as pending until they are satisfied all is well. Etsy is taking the risk if it is a bad card or fraudulently used.

[CobwebCorner]

I find it hard to believe that Etsy will take the risk. Otherwise why hold our payment at all. Pending until 'OK' means to me that if not OK - we don't get the money.

Is there clarification on this?

[OriginalsbyLauren]

Etsy is not a bank so the money is not available immediately . If you accept credit cards at a craft show, the banks don't necessarily credit your account that day either.

if you read this, it will plainly tell you that etsy takes all the risk, unlike paypal that can charge us back at anytime

http://www.etsy.com/teams/11969/direct-checkout/discuss/10276132/

[Former_Member]

I believe the 3-day hold is for THE BUYER--to make sure that we ship before the money is released. I don't think that waiting period is meant as any type of added security for THE SELLER.

The only time a seller would wait to ship is when a payment is PENDING. That, obviously, is an Etsy/Seller protection.

[Former_Member]

griffincatfromgriffincat says

I am still shipping next day after payment is received. I believe if there is any issues with the payment it will show as pending until they are satisfied all is well. Etsy is taking the risk if it is a bad card or fraudulently used.

*****
I am also not waiting 3 days to ship . . . it doesn't matter anyway. If the card is being fraudulently used, it's not going to show up within that 3-day period. IE: I just got called YESTERDAY regarding someone who fraudulently used my card on May 2nd to charge over $4,000 worth of stuff.

And, I'm totally sure that Etsy is NOT going to be "taking the risk" in the long run. If it's found out several weeks later that they're not getting their money from a DC sale, you better believe that they'll be taking it back from us.

[OriginalsbyLauren]

Deb, read the link I shared above, etsy is taking the risk

[Former_Member]

Deb from DellaCreations says Edited on May 12, 2012
griffincatfromgriffincat says

I am still shipping next day after payment is received. I believe if there is any issues with the payment it will show as pending until they are satisfied all is well. Etsy is taking the risk if it is a bad card or fraudulently used.

*****
I am also not waiting 3 days to ship . . . it doesn't matter anyway. If the card is being fraudulently used, it's not going to show up within that 3-day period. IE: I just got called YESTERDAY regarding someone who fraudulently used my card on May 2nd to charge over $4,000 worth of stuff.

And, I'm totally sure that Etsy is NOT going to be "taking the risk" in the long run. If it's found out several weeks later that they're not getting their money from a DC sale, you better believe that they'll be taking it back from us.


I do not believe Etsy will take the money back from a seller in such a situatio. This is the exact reason why they must charge fees, as they will be hung out to dry from time to time. There is risk for us in business as well as for them.

[Former_Member]

Lauren DarbyfromOriginalsbyLauren says

Deb, read the link I shared above, etsy is taking the risk

Thanks, Lauren! Good to know . . . .

[OriginalsbyLauren]

I trust what etsy is saying, I have no reason not to

paypal does take money back, so this is a safer option for sellers.

[BaerreisCollection]

The 3 day wait, in my experience is simply the amount of time it takes the charge (which is approved and vetted) to go from the cc company to etsy. It is a standard amount of time - sometimes it takes a little longer, sometimes a little quicker.. but three days is the time the money is in transit.

In this case, i believe (correct me if I am wrong) that when we use "direct checkout" we are basically using Etsy's portal for the money. So when a customer makes a purchase, the charge is through etsy's portal, and the money is in transit. When the money gets into etsy's account, it is available to the seller..

and then it may take a little while to transfer - although in my experience with dc money, it moves really quickly..

We are (as sellers) still liable for errors on our part (not as described, not shipping, etc..) but if there is fraud by the customer, then etsy will work that out with the cc providers..

It is no different from any other cc system. kind of cut an dried. "Risk" is maybe the wrong word here..

[OriginalsbyLauren]

Baerreis, thanks for explaining that.

[AnotherTimeAntiques]

that makes perfect sense... but I question the 3 day time. And actually today I marked a DC as shipped (this morning 16th) and it will be available on the 20th.
This just seems too long.

I used to own a store and had a merchant account for credit cards. The money was sent ... in transit... on the day I created the summary cash out! In my bank about within 1-2 days for withdrawal if I wanted.

Something Etsy could consider is that those of us who use direct checkout be able to set up the funds as direct deposit to our banking accounts. That would eliminate double transits and waiting periods.

[pookaqueen]

Here's my problem and I'm hoping someone here can ease my mind.

I just signed up for direct deposit yesterday and had a sale right away. The concern is that my account isn't even linked up to Etsy yet, so it will be well over a week before I can even transfer the money.

I think (and correct me if I am wrong for thinking this) that etsy should not even allow a store to take DC till it is all set up with your bank. I'm all nervous to ship when I don't even know how or when the money is supposed to get into my account.

[Former_Member]

Hi Brianna,

Once you add your bank account, we allow you to start accepting credit card orders in your shop. We know it can be confusing or frustrating when you still have to wait to receive the two small deposits, and then wait for the ten day hold to pass before you can deposit any money you've received in your bank account.

We didn't want sellers to miss out on credit card sales while they get their accounts set up to receive deposits from Etsy. Unless you refund or cancel an order, the money isn't going anywhere and will remain in your Shop Payment Account until you are able to deposit it.

If you are uncomfortable accepting orders until everything is ready to go, you do have the option to turn direct checkout off as a payment method in the meantime. And if you have any trouble verifying your bank account, we have members of our Support team dedicated to this issue who would be happy to help.

Maybe some other sellers can weigh in here and talk about how it went during that time period while you were accepting sales before verifying your bank account.

If you have any other questions about this, let me know!

[pookaqueen]

Thanks for the reply Nicole and that's all I needed to here. I wanted to ship something today and just needed to someone to tell me that it will all work out in the end : )

I don't mind waiting but I do have a tendency to be a worrier... LOL

Thanks again!