• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Etsy restores payment processing for some sellers affected by Silicon Valley Bank collapse
Editor's Pick

Etsy restores payment processing for some sellers affected by Silicon Valley Bank collapse

by March 16, 2023
by March 16, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Etsy has begun processing payments to some of the sellers on its platform who were impacted by the collapse of Silicon Valley Bank, the tech company said Monday.

‘Approximately 0.5% of our active seller base had their payments delayed on Friday,’ an Etsy spokesperson said. ‘We are working to pay these sellers today, and we’ve already started processing payments via another payment partner this morning.”

Etsy declined to identify the payment partner it is using to help clear up the disruptions.

The steps toward a resolution came after Etsy warned some sellers about delayed payment processing as a result of the bank’s seizure by regulators on Friday, according to an email from the company shared with NBC News.

The online crafts marketplace said it used SVB to facilitate disbursement to some sellers, and that it was working with other payment partners to issue deposits.

‘We wanted to let you know that there is a delay with your deposit that was scheduled for today,’ the email from Etsy said.

‘We know that you count on us to help run your business and we understand how important it is for you to receive your funds when you need them,’ the email continued. ‘Please know that our teams are working hard to resolve this issue and send you your funds as quickly as possible.’

In a written statement Saturday, an Etsy spokesperson said the issue was related to ‘the unexpected collapse of Silicon Valley Bank.’

The company said in the statement it has been working on a solution, ‘and we expect to pay sellers via our other payment partners within the next several business days.’

Etsy claims 7.5 million sellers worldwide. Regulators placed SVB into receivership around noon Friday to end a bank run on the tech lender that had begun Wednesday after it said it was seeking to raise more than $2 billion.

Etsy seller Owen McKinney said the deposits delay would have a ‘catastrophic’ effect on his business.

McKinney, who runs Kentucky Country Home laser engraving business, said in an email that he relies on the deposits to pay for items like shipping costs and materials. He said he had already reached out to one of his suppliers to delay an order for materials that he needed for next week.

‘At this time, Etsy has not provided a time frame for the funds to be deposited,’ McKinney said. ‘While I do have a website, Etsy remains a huge part of my business.’

Another Etsy seller, Rachel Briggs, has been on Etsy since 2010 selling her designs: enamel pins, keychains, and handmade art dolls. Briggs quit her office job in 2020 and has since been a freelance artist. She said her business on Etsy, in addition to her work as an illustrator, is a “huge part” of her household’s income.

Recently, Briggs paid for an “expensive” tax appointment with a professional to handle the documentation now that her income is less traditional. She expected her Etsy deposit would cover the cost.

“Getting the email that one of my most anticipated deposits is being delayed was not really a good thing to wake up to,” Briggs said. Part of her Etsy sales occurred before the deposit was held up, she added, allowing her to pay for the tax services.

Nina Bissett, another Etsy seller, has relied on the platform as her primary source of income since being laid off. Her business is a curated selection of vintage home goods, handmade, disco balls, and accessories.

When she got the email about the delay in payment, she felt worried for herself and the thousands of other sellers.

“My customers are still expecting their orders, and I won’t be able to use the funds I was expecting to use to pay for shipping and materials,” Bissett said.

“It will effectively limit how much extra inventory I can hold and sell,” she added.

She said she’s hopeful the issue will be resolved soon.

The drama with SVB started earlier this week when the bank disclosed that it sold about $21 billion of securities and proposed to offer over $1 billion in shares, all to fundraise for “general corporate purposes.”

That move raised eyebrows among investors who pondered why SVB would need to raise so much money abruptly. It also worried depositors, many of whom suddenly wondered whether their money was safe and began pulling funds out.

On Friday, the California Department of Financial Protection and Innovation said that it was taking over and closing SVB to protect deposits, naming the Federal Deposit Insurance Corporation as its receiver. The FDIC has formed a separate entity where all insured SVB deposits — up to $250,000 per depositor — will be available by Monday morning.

The shutdown came after a tumultuous morning for SVB, during which trading of its shares was halted after they fell by double-digits before markets opened. That downslide came on the heels of a more than 60% decline Thursday.

The closure marks the biggest bank failure since the 2008 financial crisis and the second-largest in U.S. history after Washington Mutual collapsed during that industry-wide meltdown, according to FDIC data.

This post appeared first on NBC NEWS
You Might Also Like
  • Boeing warns new defect on 787 Dreamliners will slow deliveries
  • Dow tumbles 475 points, S&P 500 suffers worst day since January as inflation woes erupt
  • Taco Bell to roll out AI drive-thru ordering in hundreds of locations by end of year
  • UnitedHealthcare taps company veteran Tim Noel as new CEO following Brian Thompson killing
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Payroll panic, flash sales, shrugs: How SVB’s business customers handled its collapse
next post
Why regulators seized Signature Bank in the third-biggest bank failure in U.S. history

You may also like

How on-time rent payments can help ‘credit invisible’ consumers be...

July 18, 2024

Home sales spike 14.5% in February as the median price...

March 23, 2023

Wyld Networks Launches Pioneering Satellite IoT Network

December 12, 2022

McDonald’s says $5 value meal sales are hot as consumers...

July 30, 2024

General Motors idles another auto plant, sending 2,000 workers home...

September 21, 2023

CrowdStrike says it isn’t to blame for Delta’s flight cancellations...

August 5, 2024

Auto insurance rates are jumping the most since the 1970s,...

May 25, 2024

A ‘man-made disaster’ could make it trickier to buy or...

August 26, 2024

Ivan Boesky, inspiration for ‘Wall Street’ villain Gordon Gekko, dead...

May 21, 2024

Wayfair CEO likens home goods slowdown to 2008 financial crisis

August 2, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Chick-fil-A asks customers to throw out...

    March 7, 2024

    Federal Reserve holds interest rates steady...

    February 1, 2024

    Top liquor distributor favored Costco and...

    December 13, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here