What is a Payment Account Reserve?

Quick answer

To release the funds for an order from a reserve, try adding a tracking number to the order. If Etsy can confirm the tracking shows the order in transit, the reserved funds will be released immediately.

If a Payment account reserve is placed on a seller’s account, a percentage of funds from each new sale of a physical item is set aside until the order is in transit with valid tracking or for 45 days if valid tracking is not provided. The Payment account reserve ends after 90 days, unless the shop receives an Etsy policy violation during the reserve period.

If your Payment account has a reserve, you may be able to receive the full funds from a sale sooner than 45 days by adding tracking that shows the order in transit. Sellers in the US, Canada, Australia, and the UK can buy postage labels directly on Etsy that may include tracking. Learn about customer service best practices

Funds become available at 6pm ET on the day they’re released from the reserve.

Learn more about Payment account reserves in our Etsy Payments Policy

If you have feedback about Payment account reserves, please take our survey. 

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How can my funds be released earlier from a Payment account reserve?

By adding valid tracking, you may be able to release the reserved funds sooner than 45 days. If Etsy can confirm the order was dispatched, the reserved funds will be immediately released.

On average for most sellers in 2021 this meant that funds became available within 1-2 weeks from the order date, based on an internal analysis of orders in reserve during 2021.

Etsy isn’t always able to confirm tracking for some carriers. If we can’t determine an order is in transit, the funds will be reserved for the full 45-day period.

If your Etsy shop doesn’t receive an Etsy policy violation during the reserve period, the reserve will be removed from your Payment account after 90 days.

Why was a reserve placed in my Payment account?

Reserves are common in online marketplaces and protect sellers and buyers. They can help keep your Payment account balance from becoming negative and your card on file being charged if you receive a chargeback from a customer’s credit card company, or any other unexpected refunds or charges. Many sellers with a reserve may be receiving an increased amount of sales, so reserved funds can provide a buffer.

In accordance with the Etsy Payments Policy, reserves are placed on accounts based on different risk factors, such as, but not limited to:

  • You recently made your first sale on Etsy.
  • You experienced a sudden sharp increase in sales.
  • You may have recently received a notice of counterfeit, notice of unauthorised reproduction, or a report of alleged intellectual property infringement from a rights owner. Read our Ultimate Guide to Intellectual Property and Prohibited Items Policy so you can learn how to avoid these issues.

 

How do I know if there’s a reserve in my account? 

You’ll be notified by email if a reserve is placed in your Payment account.

  1. On Etsy.com, go to Shop Manager. 
  2. Go to Finances
  3. Go to Payment account.
  4. Review the Payment account reserve section. (You’ll only see this if you have a reserve.) 

Or, under Shop advisor, look for a notification saying We’ve placed a reserve on your payment account. Next to the notification, select Learn more

Here, you’ll see the amount that is currently being reserved, as well as the minimum reserve amount that will be kept in your Payment account. 

If you’re a Star Seller, a reserve won’t be put on your account in most cases, but we’ll reach out to you if there are issues or risk factors you need to address. We reserve the right to place a reserve on your account if we determine a reserve is necessary, in accordance with the Etsy Payments Policy

What are reserve minimums?

Your reserve minimum is the amount of money that must remain in your Payment account during a reserve. It's equal to the reserved percentage of the sale amount for all the orders that are currently in reserve. A progress bar in the Payment account reserve section of your Payment account indicates whether or not you’ve met the reserve minimum. If you haven't, we’ll add to the reserve from your next sale(s).

Amount held in reserve

Reserve minimum

Amount available on deposit date (3–5 days post-sale)

$20 USD (with a 50% reserve)

$20 USD

$20 USD

$30 USD (with a 75% reserve)

$30 USD

$10 USD

$40 USD (with a 100% reserve)

40 USD

$0 USD

Amount held in reserve

Reserve minimum

Amount available on deposit date (a few days post-sale)

$10 USD (with a 50% reserve)

$30 USD (50% of both sales)

$30 USD

$15 USD (with a 75% reserve)

$45 USD (75% of both sales)

$15 USD

$20 USD (with a 100% reserve)

$60 USD (100% of both sales)

0 USD

What charges will my Payment reserve cover? 

If you don’t have enough funds in your Payment account balance, your Payment account reserve balance is used to cover buyer refunds, fees, and costs for services such as postage labels and advertising. 

If you issue a refund, your reserve minimum will be adjusted proportionally so that the appropriate percentage of the new order amount is reserved.

If you still don’t have enough funds in your Payment account to cover refunds and expenses after the reserved funds are released, your card on file will be charged for the difference.

How do I see which orders have funds being held in reserve?

To see orders in reserve, go to Orders & Delivery. You’ll see an Order in reserve badge next to the orders that currently have funds held in reserve. 

You can also see reserve information on your monthly statement CSV.

  1. On Etsy.com, go to Shop Manager and go to Finances.
  2. Go to Monthly statements
  3. Select View all monthly statements at the top of the page.
  4. Choose the desired month. 
  5. Select Generate CSV

In your monthly statement CSV, a Status column will show you if the sale is in the reserve. The Availability Date column gives an estimated date for when the portion of your reserved sale funds will become available to deposit. 

When you have a Payment account reserve on your account, a percentage of your earnings on orders are set aside and your sales aren’t available for deposit until 45 days have passed from the date of the sale.
Adding a tracking number to an order may help release funds from a reserve earlier. If Etsy can confirm the tracking shows the order in transit, the reserved funds will become available for deposit.

As part of our efforts to keep Etsy secure, Etsy Support isn’t able to give you the specific reason a reserve was placed on your account.

Reserves are placed on accounts based on different risk factors, such as, but not limited to:

  • You recently made your first sale on Etsy.
  • You experienced a sudden sharp increase in sales.
  • You recently received a notice of counterfeit, notice of unauthorised reproduction, or a report of alleged intellectual property infringement from a rights owner.

We’ll send you an email and messages in your Shop Manager to let you know if your shop has a reserve placed. For most sellers, the reserve will be removed within 90 days. However, we will monitor your shop during this time and if there are concerns with order fulfilment or policy violations, the reserve may be extended in accordance with our policies.

Etsy Support agents aren't able to remove a reserve from your account.

Learn more about Payment account reserves in the Etsy Payments Policy and the Help Centre. If you have thoughts or feedback, let us know.

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