I made my first sale two days ago, the order was sent from Etsy to Printify automatically as expected. But my order is on hold in Printify because they haven't received payment yet. I spoke with Etsy customer support and they said this feature (to automatically pay Printify for etsy orders) does not exist yet. So how do I pay printify when the money for the order is in Etsy?
You add a payment method on Printify under settings>payments and add card on Printify.
You pay Printify then Etsy pays you.
No money goes from Etsy to Printify. You pay Printify.
And then you might not get your money from Etsy until your reserve is lifted or a tracking number is entered then the money goes into your bank account. Etsy gets paid first, then Printify by you, then you get paid last.
"Etsy not automatically paying Printify for an order..."
Yeah, that's not quite how it works and has never worked that way. Etsy doesn't pay Printify they pay you. They deposit the funds into your bank account. You are responsible for paying Printify. Printify won't produce your order until they have been paid. Add a credit card over on Printify then they can charge your card when you get an order.