Does Etsy refund its fees when you refund an order?

Mostly, yes. Refund through Shop Manager and Etsy gives back the transaction fee and the payment processing fee. The listing fee comes back only if you cancel the order too. After 180 days you can’t refund through Etsy Payments at all, and Etsy keeps every fee. Enter your order to see what comes back in your country. Nothing you type leaves your browser.

Every fee on an order is itemised in the Etsy fee calculator; the processing fee in each country is on the payment processing fee page.

What comes back, in Etsy’s words

• If you refund a buyer through your Shop Manager, your Etsy transaction and processing fees for the refunded transactions are automatically refunded to your Payment account.
• If you also canceled the transaction, your listing fees are automatically credited to your account. From Etsy’s page on canceling: Etsy automatically credits you for the related listing and transaction fees. You won’t accrue any additional fees for canceling.
• If you issue a refund for a sale made through Etsy Payments, your payment processing fee will be credited proportionally and applied to the refund amount.
• If you use Etsy Payments, the funds for the refund are deducted from your Payment account. If your Payment account doesn’t have enough funds to cover the refund, your credit card on file will be charged for the remaining amount.
• If you use Etsy Payments, you can issue a refund after the payment is processed, and before 180 days after the payment is processed. After 180 days have passed, you can’t refund an order through Etsy Payments. If your shop has a policy that allows for refunds after 180 days, you can refund the buyer through a payment method outside of Etsy, such as PayPal. If you issue this type of refund, Etsy won’t be able to refund your seller fees.
• The order may be non-refundable if 180 days have passed since the purchase date, or if the buyer has filed a chargeback for the order.

Sources: Etsy’s help pages “How to Issue a Full or Partial Refund For an Order” (31 Mar 2026 copy), “How to Cancel a Sale” (15 Nov 2025 copy) and payment processing fees (6 Jul 2026 copy).

A buyer opened a case instead? Check whether Etsy’s Purchase Protection covers the refund — or see when they can open one.

Refund, or refund and cancel?

They are two separate steps. Etsy: If you issue a refund to the buyer, it does not automatically cancel the order. You’ll still need to cancel the order from the Orders & Shipping page.

Cancel when the sale is not going ahead — the item won’t ship, or you are giving all the money back. Etsy: Once you cancel the transaction, the buyer will receive a full refund for their order. The listing fee then comes back as well, and Once the order is canceled, that transaction will be removed from the sales count on your shop homepage.

Refund without canceling when the sale stands and you are giving part of the money back — Etsy’s own examples are a buyer who was overcharged for shipping or forgot to apply a shop coupon.

On a $36.00 order (item and shipping) sold from the United States, a full refund gives back $3.67: $2.34 transaction fee and $1.33 payment processing fee. Cancel as well and it is $3.87, with the $0.20 listing fee. Refund $10.00 of it and the processing fee credit is $0.37.

What Etsy’s refund pages don’t mention

Etsy’s pages on refunding and canceling name three fees: transaction, payment processing and listing. They say nothing about these, so this page doesn’t guess:

• the regulatory operating fee, in the countries that charge it;
• the VAT, GST or other tax Etsy charges on its own fees;
• an Offsite Ads fee, on an order that came through an Etsy ad on another site;
• the currency conversion fee, when a listing is priced in another currency.

Your Payment account lists every fee and credit line by line, so that is where to check what came back on a particular order.

Same $36.00 order, every seller country

A $36.00 order (item and shipping), refunded in full. Fees come from the same dated table as the fee calculator. The last column is what Etsy charged on that order for the regulatory operating fee and the tax on its fees — the lines Etsy’s refund pages say nothing about.

What this calculator assumes

One item per order (one listing fee), the order paid through Etsy Payments, no sales tax on the order, and the listing priced in your payment account currency. For a partial refund it shows the payment processing credit only, because that is the one fee Etsy says comes back in proportion.

Common questions

Fee rates are the same sourced, dated table as the Etsy fee calculator; the refund and cancellation rules are quoted from Etsy’s help center. · Etsy fees by country · Payment processing fee · Return policy rules · All free tools