Etsy Payments Policy Update December 2025: What Sellers Need To Know
Etsy has made updates to their Payments Policy, effective December 12, 2025 - here's what sellers need to know.
As always, sellers are encouraged to read the entire updated terms carefully, but Value Added Resource has you covered with a side by side comparison highlighting some key changes.
Disclaimer: comparisons are made using both automated and manual methods and are provided for informational purposes only - no warranty of completeness or accuracy is expressed or implied and users are advised to do their own due diligence.
Etsy Acts As Collection Agent For All Sellers
Previously, this section only applied to sellers in EU, UK and US, but now Etsy is expanding it to all sellers on the platform.
Old Version:
Appointment of Etsy as Collection Agent for Sellers (US/EEA/UK)
Each seller in the United States, UK, and EEA appoints Etsy as its agent for the purpose of receiving, holding, and settling payments to seller, less any amounts owed to Etsy and subject to these Terms.
New Version:
Appointment of Etsy as Collection Agent for Sellers
Each seller appoints Etsy as its agent for the purpose of receiving, holding, and settling payments to seller, less any amounts owed to Etsy and subject to these Terms.
Payment Accounts
Etsy is adding third party service providers to the list of entities authorized to verify sellers' personal information, though it's unclear what difference this may really make since authorized agents were already previously on the list.
Old Version:
Sellers authorize us, and authorized agents, to verify their information (at registration and on occasion when using the Services) by accessing public records and obtaining credit reports about the sellers.
Etsy verifies sellers’ information in order to safeguard the integrity of the marketplace and reduce the risk of fraud, money laundering, terrorist financing, and the violation of trade sanctions.
New Version:
Sellers authorize us, our authorized agents and third party service providers, to verify their information (at registration and from time to time when using the Services), including by accessing public records and obtaining credit reports about the sellers.
Etsy verifies sellers’ information in order to safeguard the integrity of the marketplace and reduce the risk of fraud, money laundering, terrorist financing, and the violation of trade sanctions.
Instant Transfers
Etsy has added this section to the Payments terms about Instant Transfers.
Instant Transfer (US seller only). Eligible U.S sellers may use instant transfer to make transfers from their Etsy Payment account directly to their bank account, subject to a fee.
Please note that if applicable, an instant transfer fee will be charged and displayed as part of the transfer process. Instant transfer is available 24/7, including on weekends and public holidays, and funds typically settle within 30 minutes.
The company began testing this new feature last month and it is currently only available to US sellers.
Liz Morton
Sales Tax
Etsy also added a new section about sales taxes being applied to certain fees, advising sellers they are solely responsible for updating their location information so that taxes can be accurately calculated.
Where applicable, sales tax will be applied to certain fees charged by Etsy...Etsy reserves the right to charge sales tax based on the tax information provided by you, and may adjust these tax rates if your tax information is incorrect or invalid.
You are solely responsible for keeping your location information accurate and current. If your location changes, please update your location information on Etsy as soon as possible.
This section doesn't call out the US specifical and is applicable anywhere in the world where fees may be subject to tax, but it's likely being added now in light of recent changes implemented in Texas and Washington state.
Liz Morton
While these changes are relatively minor, it's still concerning that Etsy appears to have made them without providing any proactive announcements either in their community forums or direct emails to sellers.
How will these changes impact your Etsy business? Let us know in the comments below!
