Published: Mar 17, 2023
by Gabrielle Pickard-Whitehead
In Small Business News
Etsy has announced that the recent payment delays experienced by a portion of the platform’s active sellers following the collapse of the Silicon Valley Bank (SVB) have been resolved.
The delays happened because Etsy had been using SVB to issue payments to some sellers, and the bank’s subsequent collapse on March 10 meant those payments could no longer be made from the bank. However, Etsy worked quickly to ‘re-engineer’ its payment processes so they could send out the due deposits via another payments partner.
Etsy Offer Assurances
As reported on Small Business Trends, Etsy emailed affected sellers to inform them of the delay to payments due on that Friday of March 10. The ecommerce marketplace offered assurances that alternative payment partners would be found as soon as possible, though Etsy was unable to provide an exact timeline as to when the due deposits would be paid.
Etsy’s Delayed Payment Resolution
Now the delays have been resolved, a statement on the Etsy website explained what happened after the collapse of SVB: “The result was that a small portion [approximately 0.5%] of our active sellers had their payments delayed by one business day, and, on Monday, we started processing payments on a normal schedule.
“While the number of impacted sellers was relatively small, we take any disruption to our seller community very seriously. We know you depend on us to get paid on time so that you can pay your bills, run your business, or buy a birthday gift for a loved one. This is why our teams worked around the clock to implement an alternate solution. And it’s why we continue to invest in our infrastructure and payments platform to help ensure you are able to seamlessly transact on Etsy.”
Global Panic Over SVB Collapse
The collapse of the Californian bank is the biggest bank failure since the financial crisis of 2008. It has caused major concerns all around the world, with many governments now trying to assess its impact on other financial institutions and even the likes of tech startups and pension funds.
President Biden offered his own assurances to the American public, stating that the banking system in the United States remains safe.
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Etsy Inc. announced on Friday that payment processing delays that affected their users were finally resolved. The delays were caused by the rebranding of Silicon Valley Bank’s (SVB) payments platform that occurred earlier this month.
Etsy, one of the world’s largest online marketplaces, said that the payment processing delays had been resolved and apologized for any inconvenience caused to its users by the rebranding.
The delays were due to a rebranding of SVB’s payment system from SVB Pay to SVB Receive, which was part of its wider platform update. The processing delays had impacted Etsy’s sellers, making it hard to access their funds.
Etsy said in their statement that the payments system should now be working normally. They also advised any sellers who have not yet received their payment to check with their bank or credit card company to make sure their payment has gone through.
The company said it was thankful that the ‘technical difficulties’ had been resolved, but noted that the period of delays ‘wasn’t ideal’, and they said they are ‘committed to keeping you informed and understanding of any future changeovers.’
Etsy’s customers have long praised the market for its ease of use, so it’s no surprise that the payment processing delays were a cause for concern for many of the site’s users. Nevertheless, it appears that the issue has now been resolved and any users who still have payments pending should be reassured that the issue is no longer the case.