Online marketplace Etsy says US sellers must verify bank accounts

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A sign advertising online seller Etsy Inc. is seen outside the Nasdaq marketplace site in Times Square following Etsy’s initial public offering (IPO) on the Nasdaq in New York April 16, 2015. REUTERS/Mike Segar

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Aug 26 (Reuters) – Etsy Inc (ETSY.O) said on Friday that U.S. sellers in its marketplace will either have to verify their bank accounts themselves or do so through a third party as they seek to comply with anti-money laundering and other regulations.

Vendors Reuters spoke to and several others on the chatrooms were annoyed by the move, saying the recommended mode of verification involved providing fintech platform Plaid with their username and password. banking password.

“It’s so typical of Etsy on any controversial subject but, when it comes to our finances, it’s unacceptable,” said Dorothy Domingo, who has been selling functional pottery on Etsy since 2008.

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Plaid, which last year agreed to pay $58 million to settle a case alleging it used financial information without consent, said it was “committed to providing a secure experience” for users.

Etsy also provided the option to self-verify bank accounts, but one seller who did not wish to be named said the process was tedious.

“Unfortunately, a less-than-stellar customer service and communication history contributes to an overall lack of trust in Etsy,” said another seller who also wished to remain anonymous.

This is the latest in a series of issues some sellers are having. A few went on strike earlier this year to protest an increase in transaction fees at Etsy. Read more

Etsy is still a key source of income for its nearly 8 million active sellers, but some have said they are considering leaving the platform.

“I haven’t fully reopened my Etsy shop, as many of my wonderful customers have come to my website to support me. But with this, I might be forced to permanently close my Etsy shop,” said seller Kristi Cassidy.

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Reporting by Nivedita Balu and Praveen Paramasivam in Bengaluru; Editing by Vinay Dwivedi

Our standards: The Thomson Reuters Trust Principles.

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