14 day hold on funds even though more than 180 days have passed since first sale.

[#1]

Hi all,
I am aware this is not a way to contact Etsy support, but after browsing the forum, I noticed other sellers got this issue resolved after posting here. I moved countries and had to open a new shop and knew there would be a 14 day hold on my funds from new sales for 90 days. However, 90 days after my first sale (December 21st), the 14-day hold was still in effect. I read it could last up to 180 days. It has been over 180 days, and the 14-day hold is still in effect. I tried contacting support, but the "specialist team"  told me there is no way to lift this hold and thanked me for the “feedback”.

There are no other holds or payment reserves on my account.

Can any of the sellers that have had this happen to them advise me how they got this resolved?

Thanks in advance!

[IlluminatiFlamingo]

@WhiBeArtsBG 

Oh no, I’m really sorry to hear that… I’ll keep pushing, though — it’s just not possible for the 14-day hold to be permanent. In fact, yesterday an agent confirmed to me via chat that in my case, it was unusual and should only last for 90 days.

[InkSplashDesign1]

The new seller hold / reserve is only 90 days so if you have 180 days it could be due to other violations, cases, breaking policies.

[WhiBeArtsBG]

@IlluminatiFlamingo I'll keep pushing, too, although I'm waiting it out a bit now. I can do without the added stress of dealing with Etsy support. I moved countries, so I had an existing customer base and had my first sale in this shop before I got the "your shop is set up" email and never got the "congrats on your first sale" email. I believe that's where things went wrong in my case. I hope the hold gets lifted for both of us eventually, and I hope even more it'll be soon!

[IlluminatiFlamingo]

What Etsy replied to me:

They claim the 14-day payment hold is a legal requirement under the financial regulations applicable to EPIL (Etsy Payments Ireland Limited).

They say it is not related to shop performance or how long you’ve been selling on the platform.

They insist it applies equally to all EU sellers and that Etsy is legally obligated to comply.

They recommend reading their article about EPIL here: What is EPIL?

My response to Etsy:

I asked them to provide the exact law or regulation that requires holding payments for 14 days for EPIL sellers.

I pointed out that Etsy Support previously told me this hold was not permanent and would be removed after some time, so I want to know why they are now saying otherwise.

I explained that if sales are constant, I will never have funds available to withdraw, because fees and costs will always be deducted from the oldest sale, creating a vicious cycle.

I also warned that if this continues, I will seek legal action, since many EU sellers do not have this hold, which can be verified on social media and in Etsy’s official community forum.

[BagmakerSupply]

@IlluminatiFlamingo: "They claim the 14-day payment hold is a legal requirement  ..." I wonder if you got an Artificial Intelligence (AI) hallucinated answer - where the AI thought that the required 14-day right of withdrawal in the European Union was the reason for the hold. Google's AI generates a similar answer without providing any actual documentation supporting this conclusion.

[IlluminatiFlamingo]

Etsy claims that this hold is a requirement due to “specific regulations” established by EPIL. However, after researching and reviewing official documentation, there is no European law or concrete regulation that requires funds to be held for 14 days permanently.

EPIL is an internal Etsy entity to manage payments, not an external regulatory authority that can impose laws. Therefore, this hold seems to be an internal Etsy policy, not a legal obligation.

Additionally, many sellers in Europe do not have this hold, which shows it is not a universal requirement.

This creates a significant problem: if commissions and fees are constantly deducted from the oldest sales, there will never be available balance to withdraw, creating a vicious cycle that limits seller liquidity.

I believe Etsy should clarify this policy and evaluate its impact, as it could be considered an unfair or discriminatory practice against certain sellers.

@BagmakerSupply  @CryzalisMasksUK  @cindylouwho2 

Whay can I do?

[InkSplashDesign1]

The hold is removed after 90 days or if you become a star seller. My old was set to be removed at the end of August, but I was made a star seller and confirmed it was due to the star seller badge. When I first inquired about this back in May, I asked if they were following Canadian guidelines, and they said yes.  but I agree with others that it's not a legal obligation. I don't know if you have any legal recourse because at the end of the day, you agreed to Etsy's terms when you signed up to be a seller, and since it's their platform, they can do what they want. 

[IlluminatiFlamingo]

Twice a Star Seller and no holds have been released, and it’s been 320 days since my first sale. Clearly, something is wrong.

[IlluminatiFlamingo]

@BagmakerSupply Indeed, it sounds like an AI-generated response. Also, after reviewing the link they provided about EPIL, there is no specific mention of any regulation or law that requires funds to be held permanently. I find this decision unfair, especially knowing that in my country there are sellers who have their funds available for deposit the next business day.

I hope someone responsible at Etsy reads this and considers a policy change, because this is clearly discriminatory treatment.

[CryzalisMasksUK]

@IlluminatiFlamingo Contact support and inform them you want to file a complaint regarding services provided by EPIL, support have to send you a form to complete, this is not a choice, they have to.

If they do not, or your are unsatisfied with the outcome or they have not answered your queries with clarity. Then you can contact and refer your complaint to the Financial Services and Pensions Ombudsman in Ireland (make sure that you provide copies of all previous correspondence) 

https://www.fspo.ie

Complete the complaints form on their website.

You can also contact the data privacy officer with your complaint: epil-dpo@etsy.com

But as I mentioned in previous posts, get your shop legal. You are losing the argument as you agreed to these terms when signing up to Etsy. It is much easier to fight, when you have everything legally correct on your side. When you have not, then it is very hard to fight your own corner 

[InkSplashDesign1]

Also, the fees are not deducted from the oldest sale; all of the Etsy fees are done the minute you make the sale, not after the hold is released. 

[IlluminatiFlamingo]

The fees from new sales are always deducted from the oldest one, which is why I almost never have available balance. I was supposed to receive the payment for a sale on August 8, but since I received another sale after that first one, the costs and fees were deducted from the first sale. So on August 8, no money was released to my deposit. That’s the problem with the 14-day hold. There are too many days of hold for this issue to happen.

[InkSplashDesign1]

@IlluminatiFlamingo That’s incorrect. If you look into payment account it shows it is deducted the minute you make the sale not from oldest sale. this is right from Etsy support. Also when you make the sale it does break down exactly what you are getting and what Etsy gets. It doesn’t make sense to deduct from oldest sale when they have already taken the fees shortly after the sale happened. The only way they are deducted from previous sales is if your current sale did not cover the entire amount. If that is case I would look at raising your prices because Etsy can suspend your account if your continuously owing fees and that’s probably why there is hold on your account after the 90 days. 

When you make a sale through Etsy.com, you will be charged a transaction fee of 6.5% of the price you display for each listing plus the amount you charge for shipping and gift wrapping. If you are an Etsy Payments user and you list your items in a currency other than your payment account currency, see the Currency Conversion section below for more details on the transaction fee. If you sell from the US, the transaction fee will not apply to sales tax. If you sell from anywhere other than the US, the transaction fee will apply to the listing price (which should include any applicable taxes that you as a seller are responsible for), shipping price, and gift wrapping fee. If you offer optional personalization for an additional fee, the additional fee for personalization is added to the listing price you display and the total display price is subject to the same transaction fees described in this Section. See the Taxes section below for more information about whether you are required to include applicable taxes in your listing prices. Transaction fees are deducted from your current balance as each sale occurs, and are reflected in your payment account.

Etsy will automatically deduct all fees owed from your payment account, with the exception of the set-up fee which is charged to your card when you complete onboarding.. Provided you have sufficient funds in your payment account no further payment action is required. If your payment account does not contain sufficient funds you are responsible for paying any fees owed in full within 15 days of the date of your monthly statement, or the account will be considered past due, and Etsy may charge your card on file or take other actions to collect funds as laid out in the Recoupment section of Etsy's Payments Policy. If you make a sale while you have an outstanding balance the net sale

[IlluminatiFlamingo]

That's how it has always worked for me, and that's how Etsy support explained to me that it worked:

Let me explain how the 14-day delay works. When an order is placed, the funds will be held for 14 days. During this period, if additional orders are received, the fees will be deducted from the funds of the initial order. For example, if you receive three orders labeled A, B, and C, with values and associated taxes as follows:

Order A: $70 (taxes $15)

Order B: $50 (taxes $10)

Order C: $40 (taxes $10)

After the 14-day delay, you would receive $35 from Order A, as the taxes from OrdersB & C would have been deducted from the released amount of Order A.

This is the message that support sent me. Regarding your “solution”, I cannot deliberately raise the prices — that is not the solution, nor do I believe it is. The only possible solution for me is for this hold to be removed. Period.

Also, for your information, I have never owed anything to Etsy, NEVER , so that is not the reason for my hold. Get your facts straight because you are totally wrong.

Please, those who read this, confirm that this is how it works. Thank you.

[IlluminatiFlamingo]

The fees from new sales are indeed deducted at the moment of the sale, but here’s what Etsy actually does:

Sale #1 → $50 → after fees, $35 net → available in 14 days.

A few days later, Sale #2 → $60 → after $20 in fees, $40 net.

When the $35 from Sale #1 become available to withdraw to your bank account… surprise: only $15 are actually available, because Etsy takes the $20 in fees from Sale #2 out of the payout for Sale #1 (the oldest pending funds).

If your funds are available to withdraw in 1 day, you might never notice this.

But with a 14-day reserve, it’s very noticeable.

[WhiBeArtsBG]

@IlluminatiFlamingo I can confirm that that is how it works for us who are on the 14-day hold. I have never owed Etsy any money either. Raising prices would only mean higher fees. It's an endless cycle no matter what we do.

[IlluminatiFlamingo]

Thanks!

[InkSplashDesign1]

@IlluminatiFlamingo @You can think what you want but if you have hold after 90s days it’s something to do with your store, complaints, or chargebacks or poor feedback on your store. Not to mention this info I provided was word for word and can be found on Etsy support. I’m a star seller so maybe being rude to people who are trying to help you isn’t the best course of action. All fees are deducted the minute you get a sale. All of this is in the handbook so you could have received the wrong information from Etsy support but I highly doubt that Etsy would publish a handbook and then not use it or say it’s wrong 

also Etsy doesn’t make policies based on you, policies are not based on each individual store. Policies affect every store. Might want to think about that before telling someone they gave you the wrong information when in fact it’s evident that you received the wrong information from Etsy support. But what do I know I’m only star seller which means I’m doing something right consistently. 

[IlluminatiFlamingo]

I’m also a Star Seller, which means I’m also doing things right. Zero returns, zero negative reviews. But what do I know, right? I’m not trying to convince anyone who doesn’t want to understand things. Wish you well

[cindylouwho2]

@IlluminatiFlamingo @InkSplashDesign1  

I think there is a problem with terminology here. 

When you make a sale, Etsy takes the fees from the account balance for deposit you already have, not from the sale that generated those fees. The sale money will not get added to your available balance until the next day. This is true whether or not you have a reserve, hold or any other issues. Yes, the fees will show up right away because they are connected to that sale, but the money comes from your existing balance. 

Example: let's say I currently have $100 available for deposit tomorrow. If I get a sale for $50 right now, that available balance will become $100 minus all the fees from that sale. If I buy ads or labels, then even more money disappears from my available balance. 

It is very common to spend your balance down to zero before midnight when on a reserve or hold, and therefore never get a deposit unless you stop paying fees or the hold/reserve ends. So the best solution is to stop paying as many fees as possible: 

• cancel Etsy Ads
• cancel Etsy Plus
• buy labels elsewhere
• opt out of Etsy's Offsite Ads

Source? I help Etsy sellers with holds and reserves, and have seen more screenshots of payment accounts than the 2 of you put together, guaranteed LOL I also watch my available balance go down each day as I make sales, then go up again at midnight if I don't ask for a deposit. So @IlluminatiFlamingo is correct on this point. 

Charging more for your items only helps a little bit at best. Reducing fees is the only thing that gets you a deposit eventually. So you either have to stop selling entirely, or at least reduce your fees until the money becomes available.

Also, Support can be wrong; they often are for me. We know for a fact that all other EU sellers are not under a 14 day hold.  

[IlluminatiFlamingo]

Thank you very much, that’s what I’ve been trying to say all along. In fact, on August 8 I was supposed to receive money, but I didn’t get anything because within the 14 days of that sale I received two fairly large orders. This is the problem with this type of hold🥲

[cindylouwho2]

@IlluminatiFlamingo when did you make your first sale? Some of these things are not based on when you opened the account. 

There is nothing here about 14 day holds being permanent. https://help.etsy.com/hc/en-us/articles/25021886246935-What-is-EPIL

[IlluminatiFlamingo]

@cindylouwho2 I received my first order on September 27, 2024. It’s been 320 days. I’m still in daily contact with Etsy support. After they told me this was permanent, I kept insisting that it wasn’t and asked them to please show me where this is legally stated. They didn’t know how to respond, so they supposedly escalated my issue and are working on resolving it. I’m still fighting…🥲

[InkSplashDesign1]

@IlluminatiFlamingo, your store is High risk, based on its time on Etsy, sales, and reviews. Plus, the use of AI is allowed, but some of your art doesn't fall into either category. 

After carefully considering the complex issues surrounding AI-generated content, we have decided to continue to allow sellers to use their original prompts in combination with AI tools to create the artwork they sell on Etsy. Permitted examples of this might include a fantasy scene based on a seller's original prompt or inputs and produced by an AI generator, or a custom portrait of a buyer's pet generated using AI tools."

 Some of your lists include the shipping origin, but not all of them. 

By selling on Etsy, you agree to: A. Provide an accurate "ships from" address.
B. Specify your shipping costs and processing times in your listings.

I wanted to share a friendly observation about your shop! I've noticed that you offer both print-on-demand (POD) products and original acrylic canvases, which can cause confusion for customers and negatively impact your Etsy algorithm. Some listings indicate they are original art shipped physically, while others are POD and created with AI. If I'm finding it a little tricky to navigate, customers might feel the same way. If you're interested in continuing both lines, consider opening a separate store for physical products and keeping this one focused on digital art. Just a thought!

If you've made changes to your store, added FAQs, and increased transparency, your hold would be lifted. You're a star seller! However, you still have a hold after 90 days, and even if Etsy is not disclosing why the information is out there, this will not only help with the hold but also potentially increase your sales and reviews.  

Also, if it's POD and you're not making the art physically, it does not fall into "handmade item", yes, for some of the listings they are handmade, but some are digital art. 

[IlluminatiFlamingo]

@InkSplashDesign1 

Let me clarify a few points:

1. My shop is for wall art, where you can find prints of AI-generated art or original handmade art. Each product clearly specifies whether it is a print of an AI-generated illustration or a piece of handmade art.

2. For my original works, I also offer a more affordable option, which is prints.

3. Regarding the shipping origin: for prints, I work with Printful, and it is specified that the origin is the United States. For originals, it is specified that they are shipped from my country. The estimated shipping time is also clearly indicated. This information is provided in every product listing.

4. All products have free shipping, and this is clearly stated. I think you may not have taken that into account.

5. My original works, both contemporary-themed and pet portraits, have nothing to do with AI; they are 100% created by me by hand.

6. It’s not difficult for a buyer to navigate the shop; the concept is easy to understand: I sell wall art, that’s it. You see a product, read its description, like it, and decide whether or not to buy it.

7. Etsy support has told me on two occasions that the 14-day hold has nothing to do with my products, their quality, or any missing information.

I believe we are not debating the quality of anyone’s products or shop here; we are discussing a problem that only 2 or 3 sellers from Europe are facing, even though there are many European sellers who do not have the permanent 14-day hold, and Etsy’s own support says this is not normal.