Thursday, March 22, 2012

Etsy Direct Checkout Versus Paypal: Holding Money

Etsy is going to offer a new form of payment within the next few months: Direct Checkout.
So how does this compare to Paypal?

One of the hesitations I have seen over this new payment is the stipulation that Etsy will hold and deposit the funds on Mondays, provided that the transaction is marked as shipped.

So if I have a sale on Tuesday, ship it on Wednesday, then I will still need to wait until the following Monday before I have access to the funds.

As a seller who is use to having funds immediately, I agree that is a pain. But then I look at a few what ifs.

What if I need the money sooner? Etsy said they will allow you to schedule earlier deposits. Not up to the minute granted, but still sooner than Monday if needed.

On the other hand, if we wake up tomorrow and Paypal has put a limit on our account (we know this happens without cause on occasion) then we will have to wait up to 21 days after shipment to get OUR money. Yikes 21 days..... So we I look at this scenario, the proposed Monday deposits do not create as much of a knot in my stomach.

Now if you have 100% security that Paypal will never limit your account, then Direct Checkout may not be what you are looking for. 

But in my case, I kind of view this as being put on a weekly paycheck. I need to re-budget to account for waiting. The good thing is that we have time to prepare for this if you choose to go with Direct Check out. 

The best part is this though: You do not have to choose, you can have both!

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