How Does Etsy Pay You? Deposit Schedules And Payments

When you start selling on Etsy you’ll probably wonder how you’ll be paid for any sales that you make.

Etsy payments are pretty simple to set up, because you have to have a verified bank account on Etsy before you can open a shop. After that, it’s just a matter of setting up your payment schedule.


How Does Etsy Pay You? Deposit Schedules And Payments

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Setting up Etsy payments.

When you set up your shop, you’ll have to fill out your bank information for deposits and possibly add a credit card for paying your Etsy bill, if there is one at the end of the month. The prompts will walk you through the process and will let you know what’s required in your country to set up your payment account.

Once your payment account is set up through the process of opening your shop, you can adjust the frequency of your payments from Etsy by going to the finances section in your shop dashboard and selecting “payment settings.”

On that page, you can use the deposit schedule box on the right to choose how often you want Etsy to deposit money to your bank.

The payment settings page on Etsy.
The payment settings page on Etsy.

New sellers will have it set to weekly automatically, but you can adjust it if you want the money that you’ve made to be sent to you more frequently.

There’s no fee to have Etsy transfer money to your bank account unless you’re an international seller who has to deal with currency conversions, so you can have it deposited daily if you want to keep track of it that often.

I have mine set to weekly deposits so that I only have 52 deposits to reconcile at tax time!




What happens if Etsy puts a payment reserve on your shop?

A payment reserve happens when Etsy holds your payments for a pre-defined period, with some or all of the money being released a little at a time. Etsy will keep your money in reserve and deposit it on the schedule that’s set up after orders are shipped with tracking, or if other criteria are met.

It’s pretty common for Etsy to put payment reserves on new accounts when they make their first sale. They started doing this when there was a huge influx of new sellers during the pandemic, and there were a substantial number of scammers in that group.

Because so many people started selling on Etsy and not sending orders, they put payment reserves in place to make sure that shops were shipping orders before the money was sent to them.

If Etsy puts a payment reserve on your account, they’ll send you a notification about how often your money will be deposited to your account. Make sure to send all of your orders on time and with tracking, or the reserve might not be lifted.


Click to see the payment reserve video.



How do you pay Etsy fees?

Etsy sends out your bill once a month, and you have to pay it in full to keep your shop open. Etsy pulls out the fees that you owe throughout the month before paying you, so as long as you sell more than you’re spending, you won’t have to make additional payments from a credit card. If you have a negative balance at the end of the month, Etsy will charge what you owe to the card on file.

Some reasons why you might end up with a negative balance that needs to be paid can include spending more on ads than you earned, or if you listed a lot of things and you’ve built up a bill for new listing fees.

If that happens, Etsy will charge the credit card that you have on file to pay your bill, but if you don’t have a card on file they’ll email the bill to you.

If you don’t pay the bill within a short time frame (some people say there’s a shorter grace period than there used to be) then Etsy will close your shop. If that happens, you’ll have to pay your bill before you can open the shop again.

Sometimes it’s hard to find a way to pay the bill, though, so you might need to do some tricky maneuvering.

If Etsy has closed your shop and you can’t find a way to pay the bill, you can go to the “Close your shop” section in the shop options.

Don’t worry, you’re not really going to close your shop. The trick here is that you have to pay your bill before you can close your shop. If you pay your bill from that section then don’t follow the closing your shop prompts, your shop should be opened up as soon as the payment is processed.

If you don’t want to go to the close your shop page (and I wouldn’t blame you) you can try contacting Etsy support to see if they can help you with your payment.

Kara Buntin

Kara Buntin has run a profitable home-based business since 1999, and has a background in art, theater design, and cake decorating. She's a top Etsy seller with over 51,000 sales on Etsy and her own website, and helps other home-based business owners with their business goals and SEO. She founded the Artisan Shopping Directory website to promote the artisans who are members of her EShop Success marketing program.

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