“When does Etsy pay me?” is a question we hear from almost every seller considering this platform. So, if you want to set up shop on Etsy, this post will tell you what you need to know about receiving payments.
How Etsy Payments Work
Etsy Payments
Etsy Payments streamlines the payment process by acting as a kind of middleman between the seller and their customers.
Sellers can accept various payment methods, including major credit cards, Etsy Gift Cards, established digital wallets, and even some installments. The seller’s Etsy Payments account consolidates all their transactions. This makes for easy tracking and deposit schedule management.
Etsy Payments handles currency conversion, further simplifying accounting and record-keeping. Etsy also acts as an intermediary in case of payment disputes or chargebacks, providing some seller protection.
Note that Etsy Payments charges processing fees for transactions. The service might not be available in all countries, so be sure to check.
Eligible Countries and Currencies
The Etsy Help Center has a list of countries where Etsy Payments is available. Check the link for the latest information.
Generally, Etsy Payments pays sellers in the currency associated with their bank accounts. For a few countries, Etsy sends Euros, regardless of the local currency. International transaction fees from the bank might apply.
Note that even if your country is eligible, some functionalities like credit card processing might not be available in all regions.
Setting Up Your Payment Account on Etsy
Setting up Etsy Payments
- If you’re eligible, you can begin the setup by logging in to your Etsy account and navigating to Shop Manager.
- Click on the Finances tab, then find and select Payment settings.
- Choose the country where your bank account is and enter the required information for your payment methods:
- Bank account details, including routing number and account number.
- Credit or debit card
- Wait for Etsy to verify your identity and bank account. Check back in case they need you to submit additional documents or perform micro-deposits into your bank account.
- In some countries, you can also link your Payoneer account to receive deposits.
- Review all your submitted information to make sure it’s correct, then submit the application for review.
Note that the verification process typically takes less than 5 business days.
Etsy’s Payment Schedule
When Etsy Deposits Money
“Ok, so, when does Etsy pay me already?” you’re probably asking. Well, we’ve got the Etsy payment schedules right here.
Standard Schedules
Etsy Payments offers you flexibility in choosing how often you want to receive your shop’s earnings. Schedule options include:
- Daily, with a minimum deposit requirement, which varies by country. (In the United States, the minimum daily deposit amount is $15.)
- Weekly, which is the default for new sellers. Payments go out every Monday, or the next business day.
- Bi-weekly, every other Monday, or the next business day.
- Monthly on the first Monday, or the nearest business day.
Note that payments are available for transfer three days after a sale is completed.This waiting period allows Etsy to process the transaction and verify there are no issues.
Beyond Standard Processing
Most payment methods process quickly, but some alternative payment options might take longer. If your Etsy account or bank information is undergoing verification, there might be a delay in receiving your first deposits.
If a buyer pays in a currency different from your payout currency, Etsy or your bank might need more than the standard three days to convert it.
For potentially high-risk transactions like large orders and new buyers, Etsy might hold the funds for a longer period. This allows them time to review the transaction.
Factors Affecting Payment Timing
Order Processing Times
“When does Etsy pay me after orders are processed?”
If you process and ship orders quickly, buyers are more likely to mark them complete sooner. This will trigger the 3-day hold to begin earlier, potentially leading to slightly faster access to your funds.
Focus on meeting your processing time commitments. This keeps customers happy, which is the main goal. Getting paid faster is a happy result of taking care of them.
Payment processing versus bank processing times
Etsy payment processing typically takes three business days. They review orders for legitimacy and security, and use the time to check for any suspicious activity or potential chargebacks.
Bank processing, which involves receiving Etsy transfers into your bank account, depends on each bank. Generally, it takes up to 3 business days for the funds to be available to you.
Different banks might also have varying internal procedures that can cause delays.
Maximizing Your Cash Flow on Etsy
Strategies for Quicker Payments
Don’t delay the verification process for your Etsy account and your bank account. Choose a payment method that has a faster processing time.
Maintain a good shop history with positive customer reviews to reduce the risk of flagged transactions. Minimal cancellations also help avoid longer holds on your funds.
If you consistently meet buyer expectations, Etsy might increase your deposit limits. This means you can receive larger sums of money before Etsy holds funds for review.
Etsy also offers some sellers with good standing early access to new payment features and programs. These could include faster processing times, special promotions, and innovative payment methods.
Tools and Resources to Manage Etsy Earnings
You won’t find any built-in Etsy seller tools specifically for managing and tracking earnings, but several other tools can help.
You can find basic data on your shop’s performance in the Stats section of your Etsy Shop Manager. This includes information on views, visits, sales by listing, and revenue over various timeframes.
Etsy allows you to download your sales data in a CSV format. This provides a more detailed breakdown of each transaction, including order details, customer information, and item costs.
The Etsy App Marketplace offers various third-party tools that seamlessly integrate with Etsy shops. These tools can provide advanced features for managing and tracking earnings. Examples include:
- Orderhive for inventory management, order fulfillment automation, and detailed financial reporting with profit margin analysis.
- Marmalead for metrics on sales trends, top-selling products, and marketing optimization.
- Ecomdash for comprehensive financial reporting with customizable dashboards.
External Tools for Financial Management
Accounting and bookkeeping tools can help you manage your finances effectively. Whether you choose a free Etsy bookkeeping spreadsheet or professional Etsy accounting software, organizing things helps.
Most tools focus on organizing financial transactions, generating reports, and ensuring tax compliance. Examples include:
- QuickBooks for invoicing, bill payment, expense tracking, and financial reporting.
- Xero, a cloud-based Etsy accounting software option for bank reconciliation, inventory management, and payroll processing.
- Zoho Books for expense tracking, invoicing, and financial reports.
- Mint for categorizing spending, creating budgets, and setting financial goals as well as tracking investment portfolio performance and asset allocation.
Navigating Challenges and Disputes
Handling Disputes and Chargebacks
When a buyer initiates a dispute through Etsy, you receive a notification and get 48 hours to respond. Address the buyer’s concerns professionally and try to resolve the issue amicably. You can offer to repair or replace the product, or give them a full or partial refund.
Whatever you decide to do, prepare all the relevant evidence for the case. This includes tracking information, photos, and communication with the buyer. If you can’t reach an agreement, Etsy will look at this information and mediate the dispute.
To prevent chargebacks, make sure your product descriptions and images accurately reflect the actual product. Post a clear and fair return policy on your shop to help manage buyer expectations.
Post clear shipping timelines, too, and send updates to customers in case you expect a delay in their delivery. Simple tracking information emails go a long way to preventing “item not received” claims.
We also recommend using a shipping method that provides proof of delivery, especially for valuable items. This strengthens your case if there’s a delivery dispute.
FAQs
What should I do if I haven’t received a payment on the expected date?
If you’re wondering, “When does Etsy pay me?” because the money hasn’t come in on time, double-check your deposit schedule. Make sure to take into account any non-business days like weekends and holidays.
Check your Etsy account activity under the Finances section to see if the payment shows as released. This means that Etsy already sent the funds, so the delay might be at your bank.
If everything else looks good, reach out to Etsy Support. They can investigate the issue further and provide assistance. You can contact them through your Etsy Shop Manager. Make sure you have your order details for that period to speed up the process.
How do currency conversions affect my payments on Etsy?
Etsy charges a 2.5% conversion fee when a buyer pays in a currency different from your payout currency. Fluctuations in market exchange rates can also impact your earnings.
To minimize the impact, list items in your payout currency. Adjust your pricing if needed to account for conversion fees.
Can I change my payment schedule after setting it up?
Yes! You can change your payment schedule any time by going back to the Payment settings. You’ll find this under the Finances section in your Shop Manager.
Note that changes might not take effect immediately, so expect a short delay before the new schedule applies to your deposits.
What are the implications of multiple shop accounts on payment processes?
Etsy suspends shops owned by the same seller. If you manage multiple shops for different sellers, payment processing can get complicated. This also means paying separate fees for each account.
Etsy’s payment system may flag shops with unusual activity or linked ownership. This can lead to delays and extra verification steps. Splitting inventory can also make stock management more complex and time-consuming.
What Is EcomBalance?
EcomBalance is a monthly bookkeeping service specialized for eCommerce companies selling on Amazon, Shopify, Ebay, Etsy, WooCommerce, & other eCommerce channels.
We take monthly bookkeeping off your plate and deliver you your financial statements by the 15th or 20th of each month.
You’ll have your Profit and Loss Statement, Balance Sheet, and Cash Flow Statement ready for analysis each month so you and your business partners can make better business decisions.
Interested in learning more? Schedule a call with our CEO, Nathan Hirsch.
And here’s some free resources:
- Monthly Finance Meeting Agenda
- 9 Steps to Master Your Ecommerce Bookkeeping Checklist
- The Ultimate Guide on Finding an Ecommerce Virtual Bookkeeping Service
- What Is a Profit and Loss Statement?
- How to Read & Interpret a Cash Flow Statement
- How to Read a Balance Sheet & Truly Understand It
Conclusion
“When does Etsy pay me?” is a common new seller question. Some sellers who have been on the platform longer still also ask this when payout are delayed.
We hope that these guidelines will help you sort out payment issues and set up systems for better cash flow. This way, you can enjoy a smoother, more stress-free selling experience.
