Sellers are responsible for buyer chargebacks; Etsy may recoup chargeback funds from seller accounts

What Etsy says

By agreeing to store a card on file, sellers authorize Etsy to charge the stored card for amounts owed including refunds, reimbursements, chargebacks, adjustments, claims, and seller fees where available funds do not sufficiently cover such charges. Etsy reserves the right to recoup funds associated with buyer chargebacks from the seller.

How to stay compliant

1. Review the chargeback notification in your Payment Account — identify the specific order(s) involved.
2. Gather evidence of shipment and delivery (tracking confirmation, order details) to submit through Etsy's dispute process.
3. If Etsy has already deducted the chargeback amount from your balance, check whether the dispute is still open for seller response.
4. If your account has been placed on a payment reserve due to elevated dispute rates, maintain a strong fulfillment and communication record to have the reserve lifted over time.

Effort: medium · 1-3 hours

Related fees & payments policy rules

• Shops with overdue billing balances or unpaid fees will be suspended until payment is madeSuspension risk
• Repeated payment method failures or an expired card on file will result in account suspensionSuspension risk
• Sellers must provide required tax information; failure to do so will restrict or suspend the accountSuspension risk