Etsy Rolls Out Direct Checkout

by Elizabeth on February 22, 2012

I had a notice in my etsy shop this week that my shop now has the option of offering “direct checkout”.  This is a new feature that’s being rolled out this month to sellers, and will be available to all shops soon.  It’s a pretty big change from the standard Paypal checkout, so I thought it was worth a little discussion.

What is Direct Checkout?  It’s a payment option that lets buyers worldwide simply checkout in your etsy shop without being re-directed offsite to Paypal.  You can read etsy’s official announcement, but these are the basics:

1.  If you use Direct Checkout, the money is NOT automatically deposited into your paypal account.  You will have to set up a bank link in your etsy shop settings.

2.  Direct Checkout will cost you 3% plus $.25 per transaction, which is automatically deducted at checkout.  (As a comparison, Paypal charges most sellers 2.9% plus $.30 per transaction).  For small price items, direct checkout is cheaper.  For pricier goods, you’ll make more money with Paypal checkout.

3.  You will NOT be automatically set up to use Direct Checkout. You have to opt-in and set up your bank link.

4.  Each shop can decide which payment methods to accept.  You can continue as is, or offer this as an alternative to Paypal.

Honestly, I’m not sure how Swanky Press will handle the new option.  On one hand, it gives buyers an option they might really like.  On the other hand, it’s one more place to have to manage money and keep track of fees.  I like the simplicity of everything being deposited directly to paypal.

(And if you love that vintage cash register – check it out on etsy at msp2012.  The brand new shop has some great photography for sale!)


  • Barbara

    I’m so glad there is an option other than Paypal.  I had my Paypal account hacked and luckily I have a great bank that froze my account when they noticed the thousands and thousands of dollars in transactions being posted. Paypal will not freeze an account like a credit card company or bank does.  They just investigate everything and that takes forever.  I had to open a new bank account because of the ridiculous amount of time Paypal was taking to resolve the matter.  It was never completely resolved.

  • Ludmilla

    My shop just got the direct check out option for my buyers. I am super exited about it. I think it will be easier for the buyers to purchase. That is for those who do not have a paypal account and who did not want to set up another account. And now only if Etsy allows a guest checkout!
    Nice blog!


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