The other day I asked if there was an issue with our notifications . Well I found out today after looking at my completed sales that indeed someone did purchase an item but did not pay for it . I got no notice either in my email or any other way that this had happened. Then I had to pay to relist this item for sale . This is wrong , very wrong on etsy in both issues
Someone purchased an item but did not pay for it?? That makes no sense.
Did a little investigation on my own. Looks like this person passed away in January , so someone tried to use their CC to purchase my item , amazed etsy knew this from the point of purchase
If Etsy canceled the sale then the item is returned to shop. You don't pay to have it returned unless it is due for renewal.
You may or may not get email notifications depending on the status of your email provider. Some people don't get notifications and that can be for any number of reasons.
I only use email as back up.