Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sun Apr 17 2016 13:41:00

Etsy Seller Suspended for Credit Card Company Error

By: Ina Steiner

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There's a million things to keep online sellers and small business owners up at night worrying, and here's another to add to the list: a mistake by a financial institution that can get you suspended from your selling venue.

A reader sent me this link to a thread on the Etsy forums and said, "It's sad what they did to this seller." The thread was started by a seller who said Etsy shut down her shop over an error. Here's an excerpt of her explanation:

"In short, Etsy suspended my shop after they received a chargeback from my credit card company for a supposed unauthorized transaction (I buy some supplies for my shop from other Etsy sellers from that account). 

"The thing is, the credit card company made a mistake. The charge was not fraudulent. It had been made by me. There was other fraudulent activity on the card, and those completely valid transactions with an Etsy seller got mixed up in it. 

"The awful thing is....I had already corrected the credit card company's mistake 2 days before my shop was suspended and the credit card statement was showing correctly THAT SAME DAY."

It's good to know that Etsy takes action on reports of fraud, and it's important to remember that we don't know how or when the credit card company communicated to Etsy what it thought was a fraudulent transaction. 

One would like to believe Etsy would quickly fix a case where it suspended a seller for a mistake by a third party, but is the credit card company being responsive when Etsy seeks confirmation that the fraud report was made in error? 

We just don't have enough information about the communication between the four parties: Etsy, the credit card company, the seller whose credit card was compromised, and the seller from whom she purchased supplies. 

The point is that it's bad enough that one's credit card can be compromised by a fraudster, but who knew it could result in a seller's livelihood coming to a screeching halt?




Comments (14) | Leave Comment | Permalink

Readers Comments

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

This user has validated their user name. by: White Rabbit

Sun Apr 17 14:38:15 2016

Etsy should be suspended for the "actions" they commit. I could post a few examples here but this new so called "pattern website" is a good example.  

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

by: RCL This user has validated their user name.

Sun Apr 17 18:33:44 2016

I suspect the other fraudulent activity on the card had something to do with it.  

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

This user has validated their user name. by: Philip Cohen
Web Site

Sun Apr 17 19:14:31 2016

Could it be that the compromised card was cancelled by the credit card company and a later charge was then "declined" rather than a charge back?

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

by: handmedownheaven This user has validated their user name.

Mon Apr 18 00:06:39 2016

What we are seeing is the slow death of online selling.  Partially  because of sites getting more and more greedy, the other because of fraudsters.  The good days are over

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

by: Flying Childers This user has validated their user name.

Mon Apr 18 08:17:23 2016

Agree with DW Rabbit as usual. Etsy is getting away with some practices and activities that would have had other corporate offices investigated by the attorney general.

However, I have found that many times the people who make these outrageous complaints about Etsy (on the forums) often are not being completely honest about what occurred or their own part in the affair.

Ina is wise to take everything with a grain of salt.

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

by: Volvo351 This user has validated their user name.

Mon Apr 18 09:31:13 2016

Another cluster... brought about by mindless 'bots! Isn't technology wonderful? Best of luck getting any human beings to straighten this out!

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

by: epuise This user has validated their user name.

Mon Apr 18 09:52:18 2016

When a person ''contests'' a charge or charges on their Credit Card, THAT person must carefully report, and then review WHICH charges are 'flagged' by the bank. Many times, a bank will 'highlight' ALL charges in the day, week, month that the 'fraud/contested' charge appeared in. MOST customers do NOT do this. HAD this Etsy user REVIEWED the 'on hold' charges IMMEDIATELY online, they COULD have authorized their bank to IMMEDIATELY remove the hold from VALID charges. Because the 'victim' FAILED to REVIEW which charges WERE flagged, VALID {delivered/rec'd} charges were 'put on hold'. THIS causes distress, etc. from the valid suppliers, who now have their money held. Plus, each must PROVE they delivered requested products/services. The RESPONSIBILITY remains with the CLAIMANT ('victim'), to ensure CORRECT charges are NOT reversed. As a 'victim' of a theft once, -I- spent several hours VERIFYING the 'bad' charges. It would have been EASY to just sit there, have a month's worth of charges 'reversed', and let the BANK and the VENDORS investigate/prove. Sorry, ETSY did the CORRECT thing. If Etsy saw 10, 20 {who knows} charges 'flagged', Etsy rightly hopped into action to PROTECT the Site, it's users, and, yes, even the 'victim', had her data been stolen. THIS, friends, is why ANY 'charge-back' needs to be given your FULL ATTENTION, and 'frivolous charge backs' to circumvent a Seller's 'return policy' {e.g., claim a SNAD to avoid paying return postage on a 'remorse return', should be used SPARINGLY, and, as a last resort. As a victim of many frauds, I have NO SYMPATHY for the writer.

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

This user has validated their user name. by: iheartjacksparrow

Mon Apr 18 10:38:57 2016

Many years ago, someone(s) was using my card number to charge various amounts to one of my credit cards. I reviewed each charge with a CSR, and all the valid charges were immediately transferred to a new card number. There was never an issue with the valid charges being compromised or declined, and I assume those companies never knew anything about what had happened to me. If the Etsy seller in question was suspended, it's most likely that she wasn't paying attention to which charges were legitimate and just told her credit card company to cancel everything.

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

by: booksy This user has validated their user name.

Mon Apr 18 12:04:40 2016

I think this problem can be laid squarely at the feet of the CC company, not Etsy.

In our B & M store, we had a customer file a chargeback because 'he didn't recognize the charge'.  I called him, he was apologetic and called his CC company same day to reverse it.

The CC company did everything by snail mail, did NOT reverse it, and it still took weeks to get sorted out, and of course, they still collected the fee for doing so.  

They just do not jump in and flip the switch and say 'it's all sorted out' and carry on.

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

This user has validated their user name. by: White Rabbit

Mon Apr 18 22:43:27 2016

did you see what Etsy is now up to? Trust Etsy?

https://www.etsy.com/teams/7718/questions/discuss/1765216
1/page/13

FRAUD
- Etsy needs to get a visit from the AG office

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

This user has validated their user name. by: White Rabbit

Mon Apr 18 22:45:19 2016

if you are on Etsy - you best visit that thread as you most likely will be charge $15 a month for patter even if you ever signed up for it. Theft!!

https://www.etsy.com/teams/7718/questions/discuss/17652
161/page/13

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

by: flybuy This user has validated their user name.

Wed Apr 20 00:51:33 2016

White Rabbit.  How do you cancel the Pattern website?  It says I have to agree to direct checkout before I can proceed and I do not want direct checkout.
Thanks in advance.

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

by: mcposty This user has validated their user name.

Thu Apr 21 02:33:31 2016

Why get suspended for fraud anyways. If they allow china on their site, they allow fraud.

Perminate Link for Etsy Seller Suspended for Credit Card Company Error   Etsy Seller Suspended for Credit Card Company Error

This user has validated their user name. by: Shop and Ship

Fri May 6 11:00:15 2016

Typically the credit card company will assign a new account number and issue a new card to the account holder when an existing account has been compromised.

Obviously the card data used by the Seller to initially open her account was no longer valid, so later the further attempted use of the cancelled card would be flagged as bogus by the card issuer.

Etsy simply recognized the Seller's account as incomplete and suspended it pending an update of the credit card data.

B of A did the same for me; and I then refreshed all credit card data for all accounts at Amazon, eBay, PayPal, etc.

The tease is figuring out how to delete the old compromised cc data from account history.  



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