Why wouldn't you accept gift cards?

[1AEON]

I was wondering what is your good reason, not to accept Etsy gift cards, especially if you would love to have more sales?
I couldn't find a good reasonable/logical answer…
What do you think?

[Former_Member]

I'm with you. I don't get why a shop wouldn't accept them. It's not like they wouldn't get paid.

[Plektra]

One reason might be that sellers don't want to use Direct Checkout. You have to choose this payment method to offer gift cards.

[dalystudios]

Yes, what Minerva said. You have to accept Direct Checkout and some sellers do not want to go that route.

[annakingjewellery]

I don't have direct checkout enabled in my shop, which (I think) means that I can't accept gift cards. I haven't activated direct checkout, as this would interfere with the reduced PayPal fees I pay when I take over a certain amount each month. I have never been asked if I accept gift cards. Just so I know if I'm missing out, do many people use gift cards?

[Squidbrains]

Direct Checkout is great! A lot of people don't like using PayPal either, like me. It all just comes down to personal preference. In the end I accept both because I want to make that $$

[Former_Member]

i do accept them. i was so happy when shops in europe were able to choose DC as payment method. unfortunately noone ever used a gift card in my shop

[SpangGangDesigns]

Anna King, am I confused...isn't accepting credit cards (visa, etc) the same as direct checkout?

[SageNThymeDesigns]

I didn't realize you could have a reduced fee through Paypal with a certain amount of sales. What is the sales threshold?

For me I think both Etsy and Paypal are ~3%, maybe?

I signed on with Direct Checkout when it was first offered and think it's the very best thing since sliced bread! About 60-80% of my sales are through DC, so my customers seem to like it.

I have noticed a slight decrease in the number of folks who pay directly with a CC lately, maybe because of all the fraud with Target, etc???

It's still way more than half of my sales though.
In order to get the 1099 tax forms you need to meet the threshold through each venue (Etsy, Paypal, etc) but hopefully with that many sales you've got good record keeping.

I've not ever seen an Etsy gift card and have no clue what that would look like, other than money in the account.

[Former_Member]

I don't think I've heard of anyone getting a sale with a gift card. I suspect they're not that widely used.

[Former_Member]

i know someone because i just bought something with a gift card :-)

[PiecesOfMePaperCraft]

StoneWyre from StoneWyre says
I don't think I've heard of anyone getting a sale with a gift card. I suspect they're not that widely used.

I got an Etsy gift card for my birthday last December and I couldn't wait to spend it. I had to filter my searches to shops that accept direct checkout because every time I clicked on something I liked I found out I couldn't use my gift card,. It was very disappointing. I eventually found two items I loved at shops that were happy to accept my gift card. :)

[annakingjewellery]

Erica S from SpangGangDesigns says

Anna King, am I confused...isn't accepting credit cards (visa, etc) the same as direct checkout?

I'm not sure what you mean Erica. You can accept credit/debit card payments through PayPal. I only accept PayPal in my shop and no longer have direct checkout enabled.

Certainly here in the U.K., PayPal offers merchant rates to customers. If you have received over £1,500 in PayPal payments in the previous calendar month, you could qualify for reduced PayPal fees. The regular PayPal fees are set at 3.4% + £0.20. However, if you have taken £1,500 in the previous calendar month, you can apply for a lower 2.9% + £0.20 rate. Once you have applied for the merchant rates, you don't have to reapply if you don't meet the £1,500 requirement, you will just return back to the 3.4% rate until you have another £1,500+ month.

MERCHANT RATES:
£0.00 GBP - £1,500.00 GBP 3.4% + £0.20 GBP
£1,500.01 GBP - £6,000.00 GBP 2.9% + £0.20 GBP
£6,000.01 GBP - £15,000.00 GBP 2.4% + £0.20 GBP
£15,000.01 GBP - £55,000.00 GBP 1.9% + £0.20 GBP

Here is how to apply:
1. Sign into your PayPal account
2. Go to the bottom of the PayPal page and click "fees"
3. Click on the link under "purchase" that says "1.4% to 3.4% + £0.20 GBP*"
4. Scroll to the bottom of the page and click on "are you eligible for lower rates"
5. Click on Apply

[Former_Member]

I would not have had my sales if it weren't for DC! I would say maybe one or two of them were through PayPal, rest of it were DC.

[ofthingspretty]

International sellers can't use the Direct Checkout option I think, that's why I am not able to accept gift cards. Otherwise I would love to !

[Plektra]

I think some international countries, but not all, can use DC. I think.
But you have to wait 2 weeks to receive payment. At least, that's how it is for the UK.

[Former_Member]

I don't accept gift cards simply because I don't want to use Etsy's direct Checkout.

Paypal has telephone customer service whereas it can take ages to get a response from Etsy.

Credit card payments can be processed through paypal without the buyer having a paypal account.

Paypal also offers a tiered fee schedule so that once you pass a certain $$$ amount in transactions per month your fee percentage is reduced.

Regardless of what payment processor you use, you still need to declare ALL of your income whether a 1099 was issued or not.

[JaxtonandJill]

I would except a gift card, no problem, I really don't how it all works but I'm willing to try..

[RobertaValle]

Because Etsy doesn't give me yhe option to use it.

[hipposdream]

DC brought a lot of extra sales for my shop but nobody even used a gift card in my shop.

[WilliamsGiftshop]

I am unable to accept gift cards, because I don't want to use Etsy's Direct Checkout.
PayPal has a much better reputation and 24/7 (phone) support.
Plus the advantage of buyers having to enter their CC info only once, on one website. There are plenty of reasons why most online sellers and buyers use PayPal. It's safer, trustworthier, faster!