Etsy’s vibrant marketplace connects Indian artisans and entrepreneurs with buyers from all over the world. However, as of November 2023, there are significant updates regarding payment processing for sellers based in India that you should be aware of. Let’s walk through the changes and your available options to ensure your Etsy shop continues to thrive.

Understanding Your Selling Options on Etsy

For new sellers in India, it’s essential to note that opening new shops on Etsy for domestic or international sales is not an option at present. Unfortunately, enrollment in India Payments via Razorpay is also closed. But fear not! If you’re an existing seller already enrolled in India Payments, you can continue business as usual.

Setting Up Your Shipping Destinations

Your payment provider isn’t the only factor determining where you can sell; your shipping settings play a crucial role too. For digital item listings, buyers globally can access your products without any restrictions. To fine-tune which countries you’re shipping physical goods to, explore how to adjust your shipping destination settings.

Accepting International Payments: PayPal and Payoneer Solutions

Sellers aiming to reach customers beyond Indian borders have two primary options: using a standalone PayPal account or enrolling in Etsy Payments with the aid of a Payoneer Payment Account.

Standalone PayPal: A Direct Approach

Standalone PayPal allows sellers to link their personal PayPal account directly with their Etsy shop. This way, funds from international sales go straight into your PayPal account without passing through Etsy’s system—giving you immediate control over your earnings.

However, this method means that Etsy cannot provide Purchase Protection support since they don’t oversee these transactions. Be mindful that monthly statements will track any fees incurred on Etsy separately from your sales revenue.

If standalone PayPal wasn’t part of your initial setup upon joining Etsy and is unavailable now, don’t worry—you have another excellent option with Payoneer.

Embracing Payoneer for Seamless Transactions

For those who opened their shops before the change or who are currently using standalone PayPal but haven’t opted into local payments via Razorpay, transitioning to Payoneer-supported Etsy Payments might be the perfect move.

By choosing this route:

• Standalone PayPal will no longer appear as an option.
• International buyers can still use PayPal where it’s operational.
• Sales through PayPal will deposit funds into your centralized Payment account on Etsy.
• Ensure compliance by having a valid GSTIN recorded (assistance is available via our partnership with Clear Tax).

Please note that there’s a payment processing fee of 5% plus INR 25 per transaction through this method.

At present time, domestic sales within India remain unsupported while we actively seek solutions.

How To Enroll in Etsy Payments:

1. Navigate to Shop Manager.
2. Click on Finances.
3. Access Payment settings.
4. Hit Enroll now under Etsy Payments (disable pop-up blockers if needed).
5. Register a GSTIN under Payment settings if necessary.

Upon enrollment:

• Sign into or create a new Payoneer Payment Account when prompted.
• Verify identity and banking information during setup for fund transfers.

Fund Deposits: The Weekly Schedule

Etsy processes fund deposits exclusively in USD every Monday at 11:30 am ET (9 pm IST) into your Payoneer Payment Account—please plan accordingly for currency conversions if needed (fee service may apply). From thereon out, auto-transfer mechanisms shift earnings directly into INR within your bank account sans additional actions required from you.

• Contact them by phone using country-specific numbers.

For questions regarding fund management or additional assistance:

• Reach out online via Payoneer’s Support Center

Processing Payments from Buyers in India

Etsy sellers in India face a unique set of challenges and opportunities when it comes to domestic sales. Although the situation with Razorpay has shifted, there are still ways to manage transactions within India effectively.

Current Status of Domestic Payment Processing

New enrollments for Razorpay, a popular payment gateway, have been suspended for Etsy sellers. This means that if you weren’t previously registered with Razorpay, accepting payments from buyers within India isn’t currently an option through this platform.

Assisting Buyers with Currency Settings

For your existing and potential customers in India, it’s important that their currency is set to INR (Indian Rupees) for them to complete purchases in your shop. If buyers encounter issues during checkout, guide them on how to adjust their browsing currency settings with our comprehensive article on changing your browsing currency, along with instructions specifically crafted for completing orders in India.

Understanding Your Legal Framework

Your capacity to accept payments from Indian buyers is defined by the legal agreement between Etsy and Razorpay outlined in the India Payment Terms. It’s crucial to remember that your dealings with Razorpay are separate from Etsy and adhere strictly to Razorpay’s own Terms and Conditions.

Timing of Funds from Domestic Sales

Funds labeled as Available for deposit through India Payments are transferred to your bank account on Mondays. If Monday falls on a bank holiday, the deposit will be processed on the next working day. Currently, there is no flexibility to alter this deposit schedule.

Handling Reserves on Seller Accounts

Etsy may place a reserve on your seller account, which means that a certain percentage of funds from each new sale of a physical item will be held back. The reserve lasts until the order has valid tracking and is confirmed in transit or for 45 days if no valid tracking is provided. After 90 days, the Payment account reserve will conclude unless there’s an Etsy policy violation during this period.

For more insights into Payment account reserves and their implications for your business, you can learn more about Payment account reserves here.

Fees Associated with India Payments Sales

When you make sales through India Payments, you’ll incur an India Payments payment processing fee of 3% + 10 INR based on the total order amount (item cost + shipping + tax - any discounts). This charge comes in addition to Etsy’s standard transaction fee of 6.5% that applies to the full value of the order.

It’s important also to keep in mind other fees associated with selling on Etsy, such as costs for listing and renewing items and any optional additional services you might use. Detailed information about Etsy’s fee structure can be found by visiting Learn more about fees on Etsy.

When orders come from outside India, PayPal becomes responsible for collecting payment processing fees instead of Etsy. For information regarding these charges by PayPal, visit Read about PayPal fees.

Opting Out of India Payments

Currently, it isn’t possible to opt out or unenroll from India Payments once you’re registered. However, if selling within India doesn’t align with your business model anymore, take certain actions within your shop settings as a workaround:

• Add a shop announcement clearly stating that you do not ship to India.
• Modify individual listings specifying international shipping only.

In case an Indian buyer still makes a purchase from your shop despite these notices:

1. You have the option to cancel and refund the order promptly.
2. Inform the buyer politely that due to current limitations or personal preferences regarding domestic sales within India, you are unable to fulfill their order at this point in time.

Being transparent about shipping policies upfront can help minimize misunderstandings and maintain positive customer relations while navigating through these changes in domestic payment processing options for Indian sellers on Etsy.

Enrollment Process: Individual vs. Business Seller

During the enrollment process, choose whether you’re an individual or a business seller. Take care to select the correct option. If your legal name doesn’t match the name on your bank account your enrollment could take longer or may fail. Enroll as an individual if you don’t have a business registered as a legal entity within your local jurisdiction.

Take Note: If your bank account is registered in your trade name you must enroll as a business and select Sole proprietorship under type of business. If your bank account is registered in your own name you must enroll as an individual.

Enroll as a business if it falls under one of these categories:

• Sole proprietorship
• Private Limited
• Public Limited
• Partnership
• Trust
• Limited Liability Partnership (LLP)
• Non-governmental organization (NGO)
• Hindu Undivided Family (HUF)

Depending on the type of business you select, we ask you to provide additional information so we can verify your identity. Identity verification is necessary for us to deposit funds from your sales into your bank account.

Required information for individual sellers:

• Country of residence
• First and last name
• Date of birth
• Permanent Account Number (PAN) Learn more about PAN and where to find it.
• Nationality
• Taxpayer address
• Phone number
• Valid and regular Goods and Services Tax Identification Number (GSTIN),
• You must add your GSTIN so that Etsy can comply with local laws. Individual sellers may not be asked to add a GSTIN while onboarding to India Payments, but you can add it in your Legal and tax information on an open shop. Etsy will periodically check your shop for a valid and regular GSTIN. If you don’t have one on file, Etsy will suspend your shop and withhold any deposits until you add one.
• Bank account info
• IFSC code
• Account Number

Required information for business sellers:

• Country
• Type of Business
• Name of legal entity (business name)
• Address
• Phone number
• Valid and regular Goods and Services Tax Identification Number (GSTIN).
• Primary shop owner information
• First and last name
• Address
• Phone number
• Date of birth
• Permanent Account Number (PAN). This must be your personal PAN number and not your business PAN. Learn more about PAN and where to find it.
• Additional beneficial owner (optional)
• Bank account info
• IFSC code
• Account Number

Checking Your Account Balance

As an Etsy seller, staying on top of your financials is critical. Monitoring your account balance—which encompasses both your earnings from sales and any fees incurred—is a straightforward process. Here’s how you can manage this aspect of your shop:

1. Visit your Etsy Payment account to view a detailed breakdown of transactions including sales revenue and fees.
2. If you have outstanding Etsy fees not covered by sales, expect to receive a billing statement via email on the 1st day of each month.

Settling Your Account Dues

1. Payment Window

You have from the 1st to the 15th of every month to clear any due balances.

2. Accepted Payment Methods

Pay off your balance using:

• Credit or debit card.
• UPI (Unified Payments Interface), if you accept standalone PayPal or India Payments.

3. Updating Payment Information

To change your preferred payment method, head over to the Billing section found within your Payment settings.

For more detailed guidance on paying off your shop balance, check out this helpful resource.

Important Considerations for UPI Payments:

• Be aware that UPI has daily transaction limits which vary depending on the bank but often cap at ₹1,00,000 per day.
• If you attempt payments exceeding this threshold, they will not be processed successfully.
• To avoid issues with limits, consider making multiple smaller payments if necessary.
• For information about specific bank limits related to UPI transactions, refer to this list.

By regularly reviewing and managing your Etsy payment account balance, along with understanding how to efficiently settle any outstanding amounts using various payment methods like UPI while considering its limits—you’ll keep financial hiccups at bay and ensure smooth operations for your shop!

Wrapping Up:

In conclusion, understanding how to manage your payment account on Etsy is pivotal to the success and smooth operation of your online shop. By staying informed about how to view your sales and fee balances, knowing when and how to pay any outstanding fees, and keeping up-to-date with the different payment methods available, such as UPI’s convenient features and limits, you can ensure financial clarity and compliance.

Remember that proactive financial management is more than just a responsibility; it’s an empowering aspect of your business strategy that enables you to make informed decisions for growth. As an Etsy seller, embracing these practices will help maintain the health of your shop’s finances, contribute to a positive reputation on the platform, and lead to a more rewarding experience in the vibrant world of e-commerce.

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