Etsy keeps cancelling my orders.

[FreedomMerchShop]

I have made three sales and all three sales were canceled and refunds were issued.  I have no idea why.  I am starting to get annoyed by this platform and will eventually have my own website instead.  Did anyone encounter this issue and how did you resolve it?

[VintageRescueSquad]

Etsy only cancels when payment is denied by the payment processor, or your shop's payment options aren't set up right. Have you contacted etsy to ask why?

Be advised that they will not tell you why a buyer's payment may have been denied....

[FreedomMerchShop]

But why would Etsy cancel an order that had been processed days ago if it's a payment processor issue as you said? And yes, I have contacted them about this issue and currently waiting for a response. 

[PlatypusDream]

Were the orders refunded before you shipped?

Had the orders cleared payment processing, or were they still processing?

Or did you ship the items out, then Etsy cancelled and refunded?

If the items were shipped, you can contest the refunds with Etsy.

The customer may have claimed that their banking details were used without permission (fraudulently) and Etsy could have classified it as an unauthorized payment. They would have refunded if this was the case.

There are clever scammers out there that target new (and infringing) shops, knowing there isn't much they can do.

[FreedomMerchShop]

One order had already been shipped and still got canceled a few days later.  The other two orders were processed then got canceled by Etsy the following day.

[bradgoodell]

If someone is using stolen credit cards to make purchases, the legitimate card holder only needs to file a fraud dispute and the credit card company forces a refund.  Etsy has no control over that.  

The one that was shipped, you may be able to get Etsy's Seller Protection to cover it.  That is, if the order was eligible for seller protection.

[BagmakerSupply · Accepted solution]

@FreedomMerchShop: In very simple terms, there are two points where an order may be 'cancelled'. The first is before the order is even accepted - usually an invalid card number or expiration date, insufficient funds, bad security code, etc. You could be having hundreds of those every day and would not even know it. The second is after the order has been accepted but has not yet been fully approved by the payment processor - generally flagged by the payment processor's fraud detection algorithm and showing to you as 'pending'.

However, even an approved transaction can be reversed. For example the card holder may have reported an unauthorized transaction.

This is something that a merchant can and does experience anywhere, even on your own site with your own payment processor.

[FreedomMerchShop]

Thank you so much! This makes a lot of sense.