Etsy caused a stir Thursday morning when it sent an email to sellers requiring them to verify their bank account information. The reason it gave was in order for the company “to comply with anti-money laundering regulations.”
While verifying bank account information causes concern among some sellers who say they’ve had trouble in the past, the real anxiety among some sellers was over how Etsy is requiring them to verify the information. Sellers must use a third-party service called Plaid, which asks sellers to enter not only their banking information, but their bank-account password.
After running a test last month, Etsy added information to its help page that showed an option that would be an alternative to having to provide their bank-account passwords to Plaid, called a manual option – but it results in a 5-day hold on seller funds. That leaves sellers having to choose between risking security or facing payment holds.
You can find details on the AuctionBytes Blog, and the text of the letter Etsy sent to sellers in the US on Thursday with the subject line, “Verify your bank account to keep getting paid,” follows:
To comply with anti-money laundering regulations, we’re required to verify your bank account to confirm that you own it.
Here’s how to verify your info:
1) On Etsy.com, click “Shop Manager”
2) Click “Finances”
3) Click “Payment settings”
4) Then follow the instructions in the yellow banner
Keep in mind if you’re unable to verify your bank account in the next 30 days, you’ll no longer be able to receive funds from your Etsy sales.
Need help? Check out this handy article.