Etsy finally issued an announcement that it is requiring all US sellers to verify their bank-account information, regardless of how long ago they set up their account.
The announcement came a day after sellers began receiving notice that they must complete a process within 30 days that required them to enter their bank-account passwords into a third-party service called Plaid. As we reported in this AuctionBytes Blog post, some sellers were panicked over the ultimatum, for a variety of reasons.
Etsy outlined why it felt Plaid was secure in Friday’s announcement, but it did not specifically address concerns over why it felt comfortable asking sellers to provide Plaid with their bank-account password.
There is an alternative to entering passwords, as Etsy stated: “Keep in mind that while Plaid’s secure API allows you to instantly verify your bank account, you can also still verify your information manually by providing an account and routing number to be verified through microdeposits.”
But Etsy’s post did not address the fact sellers who choose the more secure option will lose access to their Etsy funds for 5 days.
Etsy explained it was adjusting its practices “in connection with anti-money laundering and related regulations in the United States.” See the full announcement on the Etsy announcement board.