Etsy's Payment Processor Finally Takes Responsibility For Service Outages

Etsy Inc ETSY's e-commerce platform suffered a major blow last week after its payment processing provider suffered an outage.

Tech Crunch noted that "a large number" of Etsy transactions have been disrupted, forcing many of the platform's merchants scrambling to explain delays to their buyers.

Meanwhile, users who paid for a transaction through Paypal Holdings Inc PYPL's service appear to have been unaffected.

Update: Etsy's Payment Processor Admits Wrongdoing

In a follow up update, Tech Crunch reported that Worldplay, Etsy's third-party payment processor acknowledged that it is experiencing a service disruption. However, the announcement came after six days of "silence."

Tech Crunch added that Etsy's forum contained more than 7,000 posts by frustrated merchants, almost twice the volume when it first reported of the payment processing saga.

The publication noted that the outage is affecting all of its credit, debit and gift card transactions. A source close to the publication suggested that Worldpay does not have an estimated time to resolving the failure.

Finally, the payment processor sent the following statement to Tech Crunch, "Worldpay is aware of an isolated issue on one of our gateways, resulting in a delay to settlement for a small number of customers. We are working to resolve this issue urgently and we have proactively communicated with all affected customers."