Sellers are due refunds due to an Etsy fee overcharge and should see refunds in their accounts on the 28th of December. The overcharges took place since Etsy’s redesigned payments accounts which are now powered by Adyen.
“We determined some recent transaction fees charged to your redesigned payment account may have been slightly higher than 5% of the sale amount (which includes the item price, shipping cost, and gift wrapping) in your payment account currency.”
– Etsy
The Etsy fee overcharge errors have taken place as Etsy now calculates fees in US Dollars and then converts them into Sterling at the time the fee is incurred. This strikes us as a very strange way to calculate fees as it will always be open to the vagaries of exchange rates. It would appear to mean Etsy sellers can never be quite certain of the fees they will be charged.
“We’ll credit your payment account on December 28 for any transaction fee charges greater than 5% of the sale amount in your payment account currency. The credit will cover all transaction fee overages since the release of the redesigned payment account. For sellers charged VAT or local sales tax on transaction fees, we’ll also credit your payment account for any associated sales tax overages.”
– Etsy
Etsy added that are also looking into their process for calculating transaction fees in the future and will issue further updates as they have more information. It would appear very simple to us – if the transaction is in Sterling then Etsy should calculate the transaction fee in Sterling and if they need to convert to US Dollars for their own internal accounting then they should take the risk of any change in the exchange rate.
Etsy Sellers are now trying to figure out how much their post-Christmas refunds might be and what their Etsy fees actually are.
This doesn’t appear to be an isolated problem, in other issues with the new Etsy Payment Accounts sellers are reporting that payments aren’t appearing in their bank accounts and this appears to be another payment bug impacting sellers revenues.
5 Responses
Great. Adyen will be powering Ebay payments.
Might be time to retire from Ebay before this jackass payments system comes in,
Taking of ebays payments, have they changed the dispute process? I have a misuse of return that the money has been on hold in PayPal for nearly two weeks now. The buyer was arranging a postage label to take the item back from me as he had badly damaged the item and was not due a refund. He claimed it didn’t work to get a free return but it worked perfectly, it had just been used a lot by him and damaged by excessive use and showed a lot of ware and tear to the item.
The buyer has stopped talking to me now, and the money is still on hold. Do eBay just pay out and not tell sellers now? I have no case opened against me to say the buyer has a problem with taking the item back. It is all really strange.