Etsy posted an apology for what it called a bill payment error after some sellers reported the company took large sums of money from their credit cards and bank accounts on Friday afternoon.
EcommerceBytes reported the problem on the AuctionBytes Blog on Friday, which we continue to update. Etsy continues to say the problem affected “a small group of sellers.”
Sellers have expressed concerns about the ramifications of having money withdrawn from bank accounts or charged to credit cards – including cash flow issues and potential tax complications. Some sellers reported hundreds of dollars had been withdrawn or charged, others reported thousands. The Presidents Day holiday on Monday is adding to sellers’ woes.
In addition, as Etsy worked to fix the problem, it created another problem. Some sellers who were supposed to receive disbursements on Friday didn’t get them – Etsy said today it will send them on Tuesday, February 19.
In addition to issuing an apology to sellers, Etsy said it created a Payments task force to address concerns or troubles arising as a result of the error. If that sounds familiar, it’s because Etsy created a Payments task force in 2016 following a major payments disruption.
Etsy said it would “refund any undue fees associated with this incorrect charge and change in deposit schedule.”
Here’s today’s latest update from Etsy:
An update on recent issues affecting payment accounts
“On Friday, February 15, a bill payment error affected a small group of sellers which resulted in some cards being incorrectly charged. Sellers who were affected have been notified by email, or by Etsy Conversations, and the issue that caused this has since been resolved.
“As part of fixing this issue, all incorrectly charged cards have been refunded. It may take several business days for the refunded amounts to clear and settle in card accounts. Also related to fixing the root problem, some sellers saw their scheduled deposit of funds returned to Etsy on Friday, February 15, and those deposits will now be sent on Tuesday, February 19.
“For affected sellers, we are very sorry for the trouble or concern this may have caused. Our first priority has been to correct the issue. This was not a fraud issue, but instead an error related to a site change which affects a small group of sellers and is unrelated to buyers’ purchases.
“This is an issue we do not take lightly. We’ve assembled a Payments task force, including senior executives across Etsy, to address any concerns or troubles resulting from this error. We will refund any undue fees associated with this incorrect charge and change in deposit schedule. We don’t expect this error to impact additional sellers going forward.”
It’s interesting that Etsy calls this issue an “error” as opposed to a “bug” or a “glitch.”
Stay up to date by following this AuctionBytes Blog post.