Etsy Glitch: Day 7 Updates

Posted by on Jul 8, 2016 in Copywriting | 0 comments

Etsy Glitch:  Day 7 Updates

By now you should be seeing some of your payments coming through. Since I last posted there have been a few updates by Bill Massie, the payments engineer that is representing Etsy at this time, and Jim Esposito, the Senior Director of Payment Operations. My last post got quite a lot of notice because of my recommendation to offer customers refunds and future discounts to “smooth things over.”

I want to be 100% clear: That is my recommendation and my recommendation alone.

As business owners we will ultimately be faced with adverse, and often unforeseen, circumstances. Just like we cannot control shipping companies we cannot control payment processors. If you sell online the simple fact of the matter is that glitches happen. While it is frustrating and while I agree it should have been handled differently, I’d like to challenge you to handle your interactions with customers with grace.
While you cannot control Etsy or Worldpay you can control how you interact with your customers and I personally believe that how a person responds in difficult times is a measure of their integrity.

I also wanted to recap the following statements directly from Etsy. On July 3rd Bill Massie issued the following statement in the Etsy bug forum:

There’s a lot of complexity involved in processing a payment, but for simplicity’s sake, you can think of it as 3 main steps:
1) We “authorize” the buyer’s credit or debit card.
2) We “fraud check” the payment.
3) We “settle” the payment.

Step 1 assures that the buyer has the funds on their credit or debit card and earmarks the funds for movement, but doesn’t actually move the funds.
Step 2 is some due diligence that we do to ensure that the transaction looks valid. As you can imagine, managing fraud is a big part of online commerce. Normally this steps takes just a few seconds, but we manually review some transactions and when that happens it can take up to 48 hours.
Step 3 actually moves the funds and makes the payment ready for refunds (if necessary).

The occasional delays you see during normal processing are when we do a manual review in Step 2.

This was followed by the most recent update posted on July 7th by Jim Esposito, the Senior Director of Payment Operations of Etsy who stated the following:

As many of you know, starting in the afternoon of July 1st, our payments processor Worldpay began experiencing an issue with one of its gateways, which authorizes and settles payment transactions. Since that time, this issue has been causing significant delays in the processing of payments for purchases made on Etsy.

We have received the following statement from Worldpay that they’ve asked us to share with our community:

“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 team at Worldpay

We’ve been working closely with Worldpay to process orders as quickly as possible. We are continuing to process backlogged orders and Worldpay has let us know they are making significant progress in reducing the delays. Those with pending orders should begin to see those orders process soon, although we expect some delays to continue on new orders in the near term. We are also exploring ways to strengthen our platform to make it more resilient against issues like this in the future.

Q: Which orders are affected by this issue?

A: Because our third-party payment processor is still dealing with technical issues, new orders are still impacted by payment processing delays. As our processor deals with the backlog of payments, we are processing them on a rolling basis.

While an affected order is still being processed, it won’t appear on your Orders page. Instead, you’ll see a small note that says, “You have processing orders.” As our partner resolves their issue, your processing orders will become confirmed on a rolling basis. Once your order is confirmed, it will appear on your Orders page and buyers will receive an order confirmation.

No action is required from buyers or sellers, all orders will eventually be confirmed.

Q: How does this issue impact payments made via Paypal?

A: Both Integrated and Standalone Paypal are unaffected by this issue; orders placed with those payment methods will process as usual. Only credit card and gift card payments are currently impacted by the issue our third party service provider is experiencing.

Q: My buyer is asking for a refund. Do I have to wait until the order processes to do that?

A: Yes, the order will need to be confirmed before you can issue a refund. If your buyer has further questions, please tell them to contact

Q: Is Etsy notifying buyers that there is an issue?

A: Buyers are receiving order pending emails. To ensure that buyers understand that delays are not related to the shop they’re purchasing from, we’ve updated the pending email notification to let buyers know that we’re experiencing delays with our payment processing and to expect to receive a confirmation email when processing is complete.

Q: Will this issue affect payouts?

A: We’re working hard to ensure that sellers receive funds from affected sales as soon as possible. For sellers that are expecting to receive payouts tomorrow, your payout will be reflected in your Shop Payment Account balance at 1 PM EST.

Q: I sell digital downloads. What should I do while orders are processing?

A: For sellers of digital goods, we understand the importance of speed of delivery for your shops. If buyers reach out to you, feel free to let them know that we’re experiencing payment processing delays and to please reach out to Etsy Support for additional assistance. Additionally, Etsy Support can assist you if a buyer affected by this issue mentions it in a review or contacts you directly.

You can read the full statement by Jim Esposito here:

Jim Esposito Update

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