Etsy Payments question

[Former_Member]

I'm not familiar with direct check-out because I accepted payment through PayPal. With Etsy Payments, what happens if a buyer wants a refund or charges-back the item? Are those funds pulled directly from my bank account or the Etsy payment hub on my Etsy account?

[StuckOnSilver]

I have issued refunds when the customer returned the item within the parameters of my policies. Etsy has never refunded a customer of mine. I have cancellation within one hour but no one has ever used this. Etsy has charged me to cover a refund I've issued but has never pulled funds from my bank account.

[Former_Member]

Thank you Bev! I appreciate you sharing your experience.

[Former_Member]

I'd love to hear anyone else's experiences so far too! :)

[Former_Member]

I had to refund once when there was no more money in my etsy account so they charged my credit card

[OneFairfaxRoad]

I've had 2 buyers in 1100 sales request a return. I asked them to ship the items back via insured mail. Upon receiving the items and checking condition, I issued a refund through Etsy less original shipping fees. It's very easy to do and the seller controls the timing of the refund.

[Former_Member]

Thank you very much for your experiences! I truly appreciate it!

[deealexx]

Regarding the same topic.. I remember last month there was a message that if you don't connect your bank account to etsy, they will suspend your shop till you do so. Is that still valid or they changed? Because I didn't do it and I see my shop is open.

[SageNThymeDesigns]

When you authorize a refund through direct checkout, Etsy will pull the money from your payment account. If there isn't enough funds in there to cover the refund amount that you have authorized then Etsy will charge your bank account for the excess refund amount. This has happened to me a few times when I had to issue a refund that processed on the same day that Etsy deposited my payment account into my checking account. That was the only time it's ever happened that way. I think I just messed up on the timing and had to reconcile that 'expense' in my accounting software.

[Former_Member]

Thanks for the info! I've had to give a refund, so I just learned from experience since asking this question. :)