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Etsy Sellers Lose Their Collective Minds over Plaid Verification Error

Etsy
Etsy Sellers Lose Their Minds over Verification Error

Sellers who had just suffered waves of anxiety over a new verification requirement got a shock today when Etsy notified them their accounts were not verified and discovered they were unable to activate a button to re-verify their accounts, leaving their funds in limbo.

A seller wrote to EcommerceBytes this evening: “After we VERIFIED our bank accounts weeks ago with “Plaid”. After getting DEPOSITS for WEEKS. Tons of us just got notice our Bank Acct is not Authorized. (see Chats) The Re-Do Button is NOT working. Etsy is HOLDING OUR MONEY. Please help!”

The seller linked to a thread on the Etsy discussion boards titled, “Plaid Told Etsy Unable to verify my bank account”:

“I did the whole Plaid nonsense about a week ago and linked my bank directly to Etsy (kicking and screaming mind you) and just got an email telling me that Plaid was unable to verify the bank info and to log in and fix it.

“I log in to fix it and the box won’t let me open it to “re-enter bank details” to start the process over. You click and it never opens the whatever to let me re-enter. I’m going to lose my mind if this prevents me from getting my weekly deposits when we’ve done nothing wrong and there’s no issues with my bank account. Anyone experiencing this? I’m so annoyed.”

Etsy posted an announcement on the Technical Issues board to say the company was investigating the issue:

[INVESTIGATING] “We couldn’t verify your bank account information” email sent to verified Sellers
Hey all,
There’s a team looking into what caused some Sellers who have already verified their bank accounts to receive an email saying they were not verified. Once I’ve got an update from the team, I’ll add it to this thread.
Thanks!

Sellers had been upset about the new requirement last month because the vendor Etsy selected to aid in the verification process, Plaid, required sellers to enter the password of their bank account, which many felt was an unsafe practice.

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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/.

5 thoughts on “Etsy Sellers Lose Their Collective Minds over Plaid Verification Error”

  1. Tough cookies. Both Etsy and eBay are so bad. But sellers put up with them because that’s where most of the idiot buyers flock to when they search for things to buy. Meanwhile, a truly nice and pleasant site such as eCrater unjustly gets little attention.

  2. WHy didn’t you do it manually. I had two small amounts deposited, they appeared in my bank account an hour later, and had the account verified immediately.

  3. Yeah, right now it’s eBay & Etsy. Been there. No more. But it seems to be a fact that ANY venue that gets a majority of traffic puts the burden onto its sellers. Oh, add Amazon to that bucket. There is only one way to avoid this situation and that’s to set up your own web site & spend the “fee” funds you would have spent on getting your products promoted elsewhere.

    I gave up on Etsy after they mandated off-site marketing to successful shops. Double-dipping into my profits.

    When venues believe they can impose unfair “taxes” it’s time to rebel. Having the gov do it is bad enough.

  4. @ebayseller
    The link did not work. You cannot get to where you can choose whether or not to manually enter your banking info.

    This whole thing with Plaid is a cluster f***k. After taking 3 weeks to finally get my old account unlinked so I could add a new one, it took another 5 days to get that issues resolved. I had to use my bank login because Plaid was sending a code that was required to enter if you chose manual. That 3 digit code did not appear in my online banking info. My bank could not find that code. 2 weeks after that, I get the notice about re-verification. Contacted support, they told me that the account was never verified (it was). Sent daily notices to support about the link not working. After 10 days. my account was suddenly verified. The link issue was Etsy, but it appears that Plaid changed something. I changed all of my login details with my bank right after Plaid verified. It appears that Plaid attempted to access my account exactly 30 days after I verified it, using the login info they had. Because I changed all of it, they could not access the account. Plaid should only require a single verification. That is what I allowed. I did not allow for random or monthly access. There is no need for that. Other accounts that I have that were manually verified, just asked to verify the account and routing info. So, Plaid is up to their old data mining game again. Might be time to bring in the Feds.

    Plaid is not secure. They were sued for data mining and lost the class action suit against them. Forced to pay out millions. Do not give out your login details if you do not have to. If you do, change everything, including your login ID and Password with your bank. Otherwise, you will have them randomly accessing your account without your knowledge.

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