Etsy Sellers Experienced Large Bank Withdrawals after Billing Error

Etsy Sellers Experienced Large Bank Withdrawals after Billing Error

February 18, 2019         Written By Lynn Oldshue

Over the weekend, Etsy’s forums were flooded with billing complaints from sellers. An error on Etsy’s end caused many sellers to experience large, unauthorized withdrawals from their bank accounts and credit cards.

Sellers are required to have a bank account or card on file in order to receive payments and pay fees on their accounts. On Friday morning, sellers began reporting varying amounts of money withdrawn from their accounts—ranging from $395 to over $10,000.

An Etsy Moderator briefly responded to the matter on Friday, saying, “We’re aware of a bill payment error affecting a small group of sellers which resulted in some cards being incorrectly charged. We don’t expect this error to impact additional sellers going forward.”

The company updated that statement on Saturday, saying the affected sellers had been notified via email or Etsy Conversations (the website’s messaging platform). Etsy processed refunds for the unauthorized withdrawals. Due to the federal holiday, those refunds likely will not process until tomorrow.

The Etsy Moderator said, “This was not a fraud issue, but instead an error related to a site change which affects a small group of sellers and is unrelated to buyers’ purchases.” Etsy has not said how many sellers were affected by the error, nor have they responded to requests for overdraft fees and other costs some sellers incurred.



The information contained within this article was accurate as of February 18, 2019. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


lynn-oldshue

About Lynn Oldshue

Lynn Oldshue has written personal finance stories for LowCards.com for twelve years. She majored in public relations at Mississippi State University.
View all posts by Lynn Oldshue
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