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Etsy Falls Short of Addressing Seller Security Concerns

Etsy Falls Short of Addressing Seller Security Concerns

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.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

3 thoughts on “Etsy Falls Short of Addressing Seller Security Concerns”

  1. of all the people or companies i would consider giving my password to, online marketplaces might be the very last!

  2. It does not matter if you use manual or instant. There is a 5 day hold regardless. Also, both methods use Plaid. It can take up to 30 days for the manual option to work on some accounts.

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