Are you confused about the payment methods approved by Etsy? Etsy with its complex set of rules and regulations can be super confusing for both buyers and sellers!
Worry not because you’ve reached the right place. And we are going to answer all your queries.
One of the most common questions perplexing both buyers and sellers on Etsy is does Etsy take PayPal.
In this article, we will answer all your queries about Etsy accepting PayPal. We’ll give you a detailed insight into using PayPal on Etsy both as a buyer and a seller.
Setting up an online shop on Etsy is a great option for small businesses and entrepreneurs.
For a small business, selling their products on Etsy is a better deal than selling stuff on conventional marketplaces like Amazon.
For the buyers, Etsy is great for getting access to unique handmade products you won’t find elsewhere.
Most buyers these days prefer PayPal for shopping. Therefore, they want to know if Etsy takes PayPal.
The good news is that you can pay for most of the items available on Etsy using PayPal! That is, Etsy does accept PayPal.
It is the most popular payment option on this platform. But you must be located in a country that supports PayPal and have a valid PayPal account.
In this article, we are going to tell you all about using PayPal for Etsy transactions. Both buyers and sellers can use it successfully for transactions on Etsy.
We’ll learn about this in detail. You’ll get to know all about the best ways to use PayPal on Etsy for both buyers and sellers.
How to use PayPal on Etsy ( for sellers )
While setting up your Etsy shop, you would have to enter all relevant information regarding your PayPal account so that customers can make Etsy payments through PayPal.
Once your PayPal account is successfully set up, buyers can either choose to pay through credit cards or PayPal while ordering something from your shop.
The money then gets automatically credited to your PayPal account.
Although, Etsy is phasing out the direct PayPal payment system. It can be mostly used only in countries where Etsy payments is not available.
Let’s understand in detail what’s Etsy payments.
What are Etsy payments?
Etsy payments are Etsy’s in-house payment processing systems that enable its sellers to get paid for the products sold through the platform.
Setting up Etsy payments is an option available to sellers who have to enroll in this program.
Once you are on board, Etsy takes care of all your payments by ensuring a seamless procedure.
They would take care of all procedures related to accepting payments, processing them, money transfers between bank accounts, dealing with payment providers, handling potential disputes, etc.
Through Etsy payments, buyers can directly pay you through PayPal, but the money doesn’t go into your PayPal account.
It goes to your Etsy payments accounts that then gets directly transferred to your bank account.
Etsy payments are a great option to receive money through PayPal without the hassle of having to create a PayPal account.
Etsy payments act as a unified gateway through which sellers receive money directly to their bank account regardless of the payment method used by the buyers.
This option however comes with added costs. You have to pay different kinds of fees for running an Etsy payments account including listing fees, transaction fees, and payment processing fees.
Advantages of using Etsy Payments for Paypal
- The biggest advantage of using it is that you don’t need to have a separate PayPal account for receiving money from buyers using PayPal. Irrespective of the mode of transaction used by the buyer, the money becomes available in the merchant’s Etsy account.
- Another advantage is that sellers don’t have to pay separate payment providers’ fees. You get to manage your finance from one unified Etsy account rather than multiple places. This simplifies the procedure and makes operations hassle-free. Since Etsy has a complicated fee structure that sellers on the platform have to adhere to, managing everything from a single place lessens your ordeal.
In a nutshell, we can say that Etsy offers two kinds of PayPal services: :
Standalone Paypal & Integrated Paypal
- Standalone PayPal – Standalone PayPal can be used by sellers who don’t have the option of Etsy payments in their country. In this kind of service, sellers receive money directly into their PayPal account Whatever purchases are made by buyers, the money goes directly to the PayPal account of the business.
Standalone PayPal is easy to use and convenient.
However, the downside is that it doesn’t provide a protection cover to buyers or sellers.
Ensuring the fairness and transparency of transactions is the responsibility of the seller, and Etsy doesn’t cover any possible cases of fraud or dispute, It’s up to you to ensure that you make all payments securely and resolve any issues that might come up.
- Integrated PayPal – In integrated PayPal, you receive payments in real-time from the checkout page.
The customers don’t have to leave the Etsy website during the transaction.
The money gets directly credited to your Etsy payment account instead of going through a separate PayPal account. That is, in this system, PayPal is integrated with Etsy payments.
The good thing is you won’t have to pay a separate PayPal fee once you’ve started using integrated Paypal, but the downside is you can’t switch back to standalone paypal after signing in for the integrated option.
Requirements for Etsy Payments
However, sellers on the platform need to fulfill certain criteria to activate their Etsy sellers account:
- They need a valid debit/credit card on file.
- They need a valid bank account on file.Check our our article on Does Etsy take Afterpay & Do you need a license to sell on Etsy & Etsy customer service.
How to use PayPal on Etsy ( for customers )
Using PayPal for transactions on Etsy is fairly easy.
This option is available to customers from most countries except for Turkey. Also, sellers in Israel cannot accept PayPal payments currently.
To pay with PayPal for your Etsy purchases, you need to follow the following steps:
- When you reach your Cart, click Paypal under the option How you’ll pay.
- Next, you got to click on Pay with Paypal.
- Now, you’ll be directed to Paypal. You must sign in and carefully follow the required steps to confirm your method of payment as well as order details.
- Once you confirm your PayPal payment, the system directs you back to Etsy.
- Now you can complete the purchase by clicking Place your order.
- If you are using PayPal to make purchases from multiple shops, you can purchase from up to 10 shops in a single transaction.
If you see some technical error or face trouble paying through PayPal on Etsy, you can directly contact their Paypal support.
You must know that PayPal is a third-party processor managing and processing its own transactions.
Etsy is not liable in case your PayPal payments are not getting through. Paypal utilizes a slew of security measures to protect its user base.
This is the reason why some buyers face occasional problems in making PayPal payments on Etsy.
This issue would be sorted out most probably if you contact their customer service. If the problem persists, you can choose another payment method like credit cards.
Different Etsy sellers offer different payment methods to buyers depending on their preferences.
You must check what payment methods are approved by the seller you are buying products from, and then zero in on the method that works best for you.
Paying with a card via PayPal
It’s also possible to pay with your card through PayPal without a PayPal account.
You can follow these steps to buy items on Etsy using your card through PayPal:
- Select the option ‘Check out with PayPal. Now, choose the option ‘pay with your debit or credit card’ instead of choosing the option to make the payment with your PayPal account.
- You’ll now receive instructions to key in your credit card and billing information.
- Next, you must enter your email address for PayPal to send you a payment receipt.
- Now, you got to select ‘Continue to return to Etsy. Remember that your payment gets finally sent only when you select the Submit order on Etsy.
Is it safe to use PayPal for Etsy payments?
One obvious concern of buyers is whether it’s safe to use PayPal to pay for an Etsy purchase.
Paypal is one of the most reliable and secure payment options offered by Etsy apart from its in-house payment system known as Etsy payment.
When you use PayPal to make Etsy purchases, you get protection at two levels. Firstly, your information is stored by Etsy’s servers after encryption making it hard for hackers and cyber frauds to access your payment information.
Secondly, PayPal also has in-built security mechanisms to ensure customer data protection and prevent theft.
Both Etsy and Paypal have dedicated teams to ensure your funds stay protected and your privacy isn’t violated.
Also, as a buyer, you must know that when you pay using PayPal, your bank account information is privy only to PayPal, not Etsy.
Advantages of using PayPal for Etsy payments
Paypal is generally preferred by buyers for making Etsy payments over other payment modes like debit cards, credit cards, etc.
Let’s take a look at the advantages of using PayPal for Etsy payments:
- Wide availability – Paypal is available in most countries so customers find it more convenient to use a PayPal account for online payments than credit or debit cards.
- Safety & Security – Debit and credit card frauds are on the rise. Therefore, most people are hesitant to use their credit and debit cards while purchasing goods from Etsy shop. Paypal is a safer option; its strong security features make it hard for hackers to obtain your financial information.
- Easy to use – Paypal is a non-complicated system for making Etsy payments. All you need is a PayPal account, and you are good to go, Then, you just need to follow some simple instructions to pay the seller using PayPal.
- Flexibility – It can be exhausting to try paying for your Etsy purchase through a credit card only to have your credit card declined again and again. Paypal saves you a lot of hassle by making the whole experience smooth and seamless. You can set up multiple debit cards, credit cards, and bank accounts for funding your PayPal account. Paypal will then look for funds from your listed sources based on your order of preference. Your transaction will go through the first time itself.
Other popular payment methods
A few other popular payment methods supported by Etsy are
- Credit cards – They are one of the most commonly accepted modes of payment on Etsy. To accept credit card payments on Etsy, all you got to do is set up a merchant account with either Square or Stripe.
- Debit cards – Etsy offers several services that allow you to accept bank and debit cards including Square, Stripe, and Adyen.
- Etsy gift cards & Etsy credits – These are highly lucrative options available to Etsy buyers. Whether online or printed, sellers can accept payments from buyers who don’t have a credit card. It is a great option for buyers who’d rather not share their payment information with Etsy sellers.
- Google Pay– It’s a great payment option for buyers purchasing Etsy items through Android devices, whether they are using a browser or the Android mobile app. Google Pay is a safe and secure platform for buyers to make Etsy payments.
- Apple Pay – This payment option is available to buyers owing Apple devices.
It utilizes the same security protocols as credit cards for ensuring payment safety on Etsy. The best part is it doesn’t require you to enter personal information.
Wrapping up
Both PayPal and Etsy payments are great options for buying and selling stuff on Etsy.
For buyers, PayPal is more convenient because it allows them to pay smoothly without having to go through the hassle of paying through individual debit or credit cards.
For sellers, Etsy payments are a better option because your buyer gets multiple options to pay for the products. Not everyone might like to use PayPal. Some people prefer paying with their credit or debit cards.
The mode of payment people choose to pay you can be just a matter of habit sometimes.
By offering your customers the option of Etsy payments, you can boost sales as people will be more inclined towards a seller who offers them flexible payment options.
