Etsy Payment Processing Fee Explained

What the Payment Processing Fee Is

The Etsy payment processing fee is charged for handling payment through Etsy Payments. It is separate from the transaction fee and has two components: a percentage of the order total and a fixed amount per order.

Unlike the 6.5% transaction fee, the processing fee structure, percentage plus fixed amount, which means the effective rate is higher on small orders where the fixed $0.25 component represents a larger share of the total.

Rates by Region

Etsy's payment processing fee varies by seller country. Below are common rates. Always verify current rates in your Etsy seller account, as Etsy can update them.

What It Applies To

Like the transaction fee, Etsy's payment processing fee applies to the full order value including shipping charged to the buyer. If your item is $30 and you charge $5 shipping, the 3% component is calculated on $35.

The fixed $0.25 is charged once per order regardless of order value, making it proportionally more impactful on low-priced items.

Real Examples: Processing Fee for US Sellers (3% + $0.25)

These examples show the processing fee on the item price only, with no shipping charged.

How It Stacks With Other Fees

The payment processing fee is one of three baseline fees on every Etsy order. Combined, they form the floor cost for every sale:

Listing fee: $0.20 fixed per transaction.

Transaction fee: 6.5% of total order value including shipping.

Payment processing fee: ~3% + $0.25 for US sellers, on the full order value.

On a $25 US sale with no shipping, those three fees alone total around $2.83, about 11.3% of revenue. Offsite Ads, where applicable, add further on top.

FAQ

What is Etsy's payment processing fee?

It's a per-order fee for processing payment through Etsy Payments, structured as a percentage of the order total plus a fixed amount. For US sellers, that's 3% + $0.25. It applies on every transaction and is separate from the 6.5% transaction fee.

Is the processing fee the same in all countries?

No. Rates vary by seller region. UK sellers pay 4% + £0.20, which is a higher percentage than the US rate. Etsy can update regional processing fees, so always verify the current rate for your country in your seller account settings.

Can I avoid the Etsy payment processing fee?

In most countries where Etsy Payments is available, it's required for accepting payments. Since the processing fee is part of Etsy Payments, sellers in those regions cannot opt out. Check your country's Etsy Payments eligibility if you're unsure whether it applies to you.