Some Etsy sellers have received email warnings about delays in making deposits after the Silicon Valley Bank collapsed, but the company promises a fix will be coming soon.
Etsy sellers can receive payments on a daily, weekly, bi-weekly or monthly basis, and those who should have made a deposit on Friday have been notified of the delay.
Naturally, e-commerce platform he blames the “quick and unexpected” collapse of the Silicon Valley Bank for this, rather than its heavy dependence on the bank and its current inability to adapt quickly enough.
Etsy is delaying deposits due to the collapse of Silicon Valley Bank
Maridah, a seller of sewing patterns, sent a message to Twitter (opens in a new tab) screenshot of an email from Etsy that reads:
“We wanted to let you know that there is a delay in making a deposit that was scheduled for today. This delay was due to recent developments regarding Silicon Valley Bank, which Etsy uses to facilitate payouts to certain sellers.”
Since then, other sellers in the same situation have commented on Maridah’s Twitter thread, with some emphasizing that Etsy is their sole or primary source of income and that any significant delay could put them in financial trouble.
To that end, Etsy is said to be “working around the clock” to resolve the issue, according to a community post (opens in a new tab)claiming it would “guarantee sellers to be paid within the next few business days via [its] other payment partners.
HSBC UK has since acquired Silicon Valley Bank UK Limited for £1, offering a lifeline to the many UK start-ups and small and medium-sized businesses it has supported, although the effects of the bank’s collapse are certain to continue.
an Etsy spokesperson said TechRadar Pro:
“At Etsy, supporting our sellers is our top priority and we understand how important it is for these small businesses to be able to receive funds when they need them. We recently experienced a delay in payment processing for a small group of affiliated merchants due to the unexpected collapse of Silicon Valley Bank – approximately 0.5% of our active merchants experienced payment delays on Friday. We are working on paying these sellers today [13 March] and already this morning we started processing payments through another payment partner.”
By Edge (opens in a new tab)