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. 

Adding tracking that shows the order in transit can help release your funds for deposit sooner. Sellers in the United States, Canada, Australia, and the UK can buy shipping labels directly on Etsy that may include tracking.  Learn about customer service best practices

Etsy is not able to access tracking events for some carriers. If we can’t determine if an order is in transit, the reserved funds will be held for the full period and become available 45 days after the sale.

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. 

This video explains more about Payment account reserves.

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Will a reserve be placed in my Payment account?

In accordance with the Etsy Payments Policy, reserves are placed on accounts based on different risk factors, such as, but not limited to, if you recently made your first sale on Etsy or have received a communication from our Trust & Safety team for a policy violation. 

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. 

This reserve will be removed from your account in 90 days, unless there are additional policy infractions with your account.

How does the Payment account reserve work? 

If you have a reserve on your account, for each subsequent sale you receive, a set percentage of the sale amount will not be available for deposit for up to 45 days from the sale date. This reserve will be removed from your account in 90 days, unless there are additional policy infractions with your account.

Adding tracking that shows the order in transit can help release your funds for deposit sooner. Sellers in the United States, Canada, Australia, and the UK can buy shipping labels directly on Etsy that may include tracking.

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 the reserved percentage 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 are a few examples of the reserve applied to a sale of $40 before any fees, taxes or other Payment account activity:

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 

 

Here’s what happens with a subsequent sale of $20 before any fees, taxes or other Payment account activity:

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 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 the appropriate percentage 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 Monthly statements
  4. Click View all monthly statements at the top of the page.
  5. Click the desired month. 
  6. 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. 

With Payment account reserves, a percentage of some sellers’ earnings on orders will be set aside for 45 days just in case there’s an issue with the order. This allows us to confirm that they’re able to keep up with customer demand and provide a great experience to shoppers on Etsy by shipping on time and providing excellent customer service.

We’ll send you an email and messages in your Shop Manager to let you know if your shop is impacted.

Learn more about this change in the Etsy Payments Policy and the Help Center.If you have thoughts or feedback about this change, let us know.

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