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 not available for deposit for a period of time or until the order is in transit with valid tracking added by the seller.

Orders in reserve also have a default holding period, so if no valid tracking is provided, funds will be released after that period. 

Funds are released from a reserve when: 

  • The seller adds tracking to the order, and Etsy can verify the tracking shows the order is in transit. 
  • If no tracking has been provided by the seller, a default holding period of time has passed. 

If a reserve is placed in your shop, we’ll display the default holding time period and percentage of reserve funds in the Reserve section of your Payment account. These can vary based on your account. 

A reserve is removed from a shop after a time period of the shop remaining in good standing, shipping orders within processing times, and providing good customer service.

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

Learn more about Payment account reserves in the Seller Handbook and 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?

Add valid tracking. The reserved funds will be immediately released if Etsy can confirm the order has shipped. 

Sellers in the US, Canada, Australia, and the UK can buy shipping labels directly on Etsy that may include tracking.

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 period displayed in the Reserve section of your Payment account

On average in 2022, funds from most orders became available to sellers within 2 weeks of the order date. *Based on an internal analysis of orders in reserve during 2022.

If you become a Star Seller, the reserve will be removed from your account, in line with the Etsy Payments Policy.

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:

  • A sudden sharp increase in orders 
  • Orders are consistently missing tracking information or tracking events
  • Orders aren’t shipped on time
  • A recent increase in refunds
  • You recently made your first sale on Etsy

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

We’ll email you from support@etsy.com if a reserve is placed in your Payment account.

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

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. The amount that's reserved from each order is displayed along with the default holding period for funds if tracking isn’t added.

How do I avoid a reserve in the future? 

These tips can help prevent a reserve being placed on your shop going forward: 

  • Add tracking to your orders. If Etsy can confirm the tracking number, reserve funds are released when the order ships.
  • Ship your orders on time. Adjust your processing times if you’re not giving yourself enough time to prepare orders. 
  • Don’t mark items as shipped before dropping them off with your carrier.
  • Respond to messages from customers quickly—within 24 hours if you can.
  • Stay up to date on seller policies to ensure your shop remains in compliance.
  • Strive for good reviews. Keep providing friendly customer service and achieving standards you’ve described for your items. Learn about customer service best practices.

You’ll also avoid Payment account reserves if you become a Star Seller, in line with the Etsy Payments Policy.

What are reserve minimums?

The point of a reserve is to ensure refunds and chargebacks can be easily managed if any issues arise. 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 (with a 50% reserve)

$20

$20

$30 (with a 75% reserve)

$30

$10 

$40 (with a 100% reserve)

$40

$0 

Amount held in reserve

Reserve minimum

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

$10 (with a 50% reserve)

$30 (50% of both sales)

$30

$15 (with a 75% reserve)

$45 (75% of both sales)

$15 

$20 (with a 100% reserve)

$60 (100% of both sales)

$0

What charges will my Payment account 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 shipping 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 & Shipping. 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 unauthorized 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 fulfillment 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 Center. If you have thoughts or feedback, let us know.

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