Sellers started to report an Etsy billing error on Friday which saw seemingly random amounts debited from their bank accounts and credit cards, in some cases this was hundred of dollars but others report thousands and even tens of thousands of charges. We suspect that in many cases, the larger the amount the more likely it is that the debit failed due to lack of funds and reports suggest that in other instances the banks rejected the charges as potentially unusual.
Etsy issued an update at on Saturday saying that they were ‘very sorry for the trouble or concern this may have caused‘, but since then sellers are complaining that Etsy has gone silent and those affected are unable to contact the ‘assembled a Payments task force, including senior executives across Etsy’ who aimed to address any concerns or troubles resulting from this Etsy billing error.
Statement on on Etsy billing error
“On Friday, February 15, a bill payment error affected a small group of sellers which resulted in some cards being incorrectly charged. Sellers who were affected have been notified by email, or by Etsy Conversations, and the issue that caused this has since been resolved.
As part of fixing this issue, all incorrectly charged cards have been refunded. It may take several business days for the refunded amounts to clear and settle in card accounts. Also related to fixing the root problem, some sellers saw their scheduled deposit of funds returned to Etsy on Friday, February 15, and those deposits will now be sent on Tuesday, February 19.
For affected sellers, we are very sorry for the trouble or concern this may have caused. Our first priority has been to correct the issue. 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.
This is an issue we do not take lightly. We’ve assembled a Payments task force, including senior executives across Etsy, to address any concerns or troubles resulting from this error. We will refund any undue fees associated with this incorrect charge and change in deposit schedule. We don’t expect this error to impact additional sellers going forward.”
– Etsy
Latest news from sellers affected by Etsy billing error
Sellers are now seeing two main problems – managing refunds for the incorrect debits and worries over pending deposits.
Managing refunds
For those who had a random debit from their bank or credit card, some appear to have been refunded via an alternative method. They may have a pending charge on their credit card but are seeing a payment with a corresponding amount in their business account.
“The $3,200+ is still showing as a pending charge on my credit card, and now I have that amount plus what was in my payment account is in my business account. I want my credit card balance to go back to what it was!”
– Etsy Seller
Quite apart from the hassle of checking accounts and transferring funds back to where they are supposed to be or paying potential interest charges on credit cards or overdrafts, sellers are saying that their tax reports will also now be incorrect and are worried about paying tax on what looks like a payment when in fact it’s simply a refund for a charge on an alternative banking facility. It’s a fair question to ask why Etsy didn’t either reverse charges or at least refund to the source the incorrect charges were debited from.
Pending Etsy Deposits
Etsy warned that some sellers saw their scheduled deposit of funds returned to Etsy on Friday due to their crisis management and fixing the root cause of the problem. However they said at the time that the deposits would then take place on Tuesday. However some sellers who were expecting to see the proceeds of their sales in their bank accounts are reporting that payments are now being delayed until next Monday. Others say that funds are showing pending but won’t clear until tomorrow (Wednesday this week).
“I just went to check on the deposit I was suppose to receive today and they changed the deposit day to 2/25 (Next Monday)”
– Etsy Seller
Mistakes happen and much as we might rant and rave about them life isn’t perfect and neither are businesses – sooner or later every business large and small will make a mistake and need to put it right. The main issue that is voiced again and again in the now 80 plus page (and growing) forum thread is lack of information and a wall of silence from Etsy. Yes it’s been a long federal holiday for President’s weekend in the US, but all sellers have been clamouring for over the past few days is to be updated on what’s going on, to know when and to which of their banking facilites they’ll be receiving the refund for funds incorrectly charged and, for those expecting Etsy deposits, to know when the proceeds of their sales will arrive.
