Etsy on Monday resumed payments to merchants with Silicon Valley Bank accounts after the e-commerce platform paused their payouts over the weekend following the U.S. government shutdown of the bank last week.
Approximately 0.5% of Etsy’s active sellers -or around 2,700 merchants- had their payments delayed on Friday related to SVB’s collapse, according to Etsy.
“We are working to pay these sellers today, and we’ve already started processing payments via another payment partner this morning,” an Etsy spokesperson told Reuters on Monday.
The payments Etsy sellers received is unrelated to the Federal Reserve’s Sunday announcement, which ensured that SVB’s customers would have access to their funds on Monday.
Shopify SHOP.TO, which provides websites and apps to stores, also halted payments to online sellers with Silicon Valley Bank accounts, telling merchants they must switch accounts to receive funds, according to the company’s website.
Etsy and Shopify each work with 5.4 million and 1.75 million online merchants respectively worldwide, mostly small-to-medium size businesses.
Some Etsy sellers decided to put their stores on vacation mode, pausing customer purchases in an effort to minimize their financial losses while others say they have received their payments on schedule.
Moshe Steinberg, 31, said that he received a payment from Etsy on Monday morning, but is still waiting for it to clear with his bank.
“It was a nail biting situation until I checked my bank account this morning,” the 3D-printed seller from Central Ohio said, adding that Etsy is currently his only source of income.
Etsy merchant Elizabeth Thompson, 57, said she has received little guidance from the company on what transpired.
“I just don’t understand why they can’t be a little more transparent about what’s going on. It’s not like it’s their fault,” she added.
Etsy said it communicated with any seller who was impacted on Friday directly via email and posted an update in their forums on Saturday.
:quality(70):focal(900x690:910x700)/cloudfront-us-east-1.images.arcpublishing.com/tronc/75EFI7KQGJFXTMQGSSLMSBK5L4.jpg "How much? Tracking prices at Midwest grocery stores for eggs, milk, bacon, beef, bananas, beer, wine and more. – Chicago Tribune")
Discussion about this post