All You Need To Know About The New Refund Process Of Etsy

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Etsy sellers are having a hard time with the refund processing problems that began on July 1st. No refunds and no cancellations were going through.

All You Need To Know About The New Refund Process Of EtsyRefunds are getting bounced back to the seller’s account, even partial refunds for shipping overcharges.

While new orders are processing without delays, Etsy sellers are still experiencing issues processing refunds. Some refunds are not being processed, while others are taking longer than usual to process.

Sellers noticed a difference in the way their transactions are labeled in their reports too – some have a status of “Posted” instead of “Settled,” and sellers speculated about what that might mean.

In order to expedite refunds while Etsy works through processing delays, they’re making a small change to the way they process refunds.

According to Ryan Young from youngrya: “If a seller doesn’t have the balance to cover a refund in their Shop Payment Account, we will add the remainder to their bill, rather than charging the card on file. Sellers will pay for the refund with the rest of their bill at the end of the month.”

Sellers who wish to provide excellent service to their customers have found it difficult over the past week-and-a-half due to the technical issues that delayed orders from completing. The problem stemmed from a gateway issue at

Worldpay, the third-party service that powers payment processing for Etsy’s Direct Checkout system. Meanwhile orders processed through PayPal – directly through the seller’s PayPal account or through Etsy Direct Checkout, experienced no problems.

The Worldpay team released its statement:

“Worldpay is aware of an isolated issue impacting one of our gateways, resulting in a delay to some deposits and refunds for transactions across some of our customers’ platforms, including Etsy’s. We are working hard to resolve this issue, and sincerely apologize for the inconvenience this has caused to Etsy sellers and buyers. To date, we have resolved the full backlog of deposits and refunds from the weekend, and we’re confident we will have addressed any remaining transactions shortly.”

The good thing, Etsy staff are actively reaching out to affected buyers to assure them that this issue is caused by delays in Etsy’s payment processing and not the shop they bought from.

If you received an email that your refund failed, please resubmit it and that will push it into the processing queue.

With all of these changes, update your Etsy store policy now to keep your customers informed.

Gary Capps
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