Etsy Identifies Culprit Behind its Payment Debacle

Etsy has identified Worldpay as the culprit behind its payment debacle. Payment delays and issues started last week, causing Etsy sellers to hold orders and make judgment calls on whether to take a risk and send orders to customers before their payments were processed. EcommerceBytes reports that Worldpay has since apologized to buyers and sellers through an Etsy message board, however it downplayed the problem in an announcement on its own website after the media picked up the story. Timing only added to the problem as it was the beginning of a holiday weekend.

Total Retail’s Take: This isn’t the news Etsy sellers want to hear. While the problem has been identified, it hasn’t been solved. I imagine after seven days of trying to process payments, sellers are looking for some compensation from Etsy or, at the very least, a definitive date when the problem will be solved. However, an update will have to suffice for now. As of 7 p.m. Thursday night, it was reported Etsy had successfully processed 90 percent of the backlogged delayed orders. However, new orders were still being impacted by payment processing delays.