What is a Payment Account Reserve?

If a Payment account reserve is placed on a seller’s account, a percentage of their sales is set aside on a rolling basis for up to 45 days. 

Reserves are a common practice in online marketplaces. They can help keep your Payment account  balance from going into the negative if you receive a chargeback from a customer’s credit card company, or any other unexpected charges. 

For now, we expect that only a small percentage of new sellers on Etsy will be affected by Payment account reserves. 

To have your funds released to you for deposit  earlier, be sure to add tracking to your orders that show they are in transit. Learn about customer service best practices.  

You can 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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Will a reserve be placed in my Payment account?

Shops that have been open for fewer than 90 days and receive a high volume of sales may be eligible for a reserve. For now, we expect that this will affect less than 1% of sellers on Etsy. 

To determine if your shop meets our criteria for a reserve, we look at the number of sales you received during the past 30 days. 

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. To see the details of the reserve: 

  1. On Etsy.com, go to Shop Manager
  2. Click Finances
  3. Click 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, click 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. 

How does the Payment account reserve work? 

If you have a reserve on your account, for each subsequent sale you receive, 30% of the sale amount will not be available for deposit for up to 45 days from the sale date, or, if you add tracking information to the order, until the order is shown as shipped and in transit. When the funds are released from the reserve, they’ll become available for deposit and sent to your bank account in accordance with your deposit schedule

Your reserve minimum is the amount of money that must remain in your Payment account and is equal to 30% of the sale amounts for all the open 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 have not, we’ll top up the reserve from your next sale(s).

Here’s an example of how a reserve works with a first sale of $50: 

  • $15 is held in reserve, or 30% of the total sale before fees and charges. 
  • Your reserve minimum is $15. 
  • On your deposit date (usually 3–5 days after a sale), you have $35 available to deposit minus any charges and fees in your Payment account.

Here’s what happens with a second sale of $20: 

  • $6 is placed in reserve, or 30% of the total sale before fees and charges. 
  • Your reserve minimum is $21, which is equal to 30% of the total of both sales ($70). 

What charges will my Payment account reserve cover? 

If you don’t have enough funds in your Available for deposit 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 30% of the new order amount is reserved.

If you don’t have enough in your Available for deposit balance and your reserve to cover refunds and expenses, 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 Shop Manager > Orders & Shipping. You’ll see an Order in reserve badge next to the orders that currently have funds being held in reserve. 

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

  1. On Etsy.com, go to Shop Manager.
  2. Click Finances.
  3. Click Payment account
  4. Under Monthly statements, click the desired month. 
  5. Click Generate CSV

In your statement CSV, you’ll see a Status column that will show you if the sale is in the reserve and an Availability Date column with an estimated date for when the portion of your reserved sale funds will become available to deposit. 

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