Anti-money laundering and related regulations in the United States are prompting marketplaces like Etsy to change how they ensure buyers and sellers are protected. Over the next few months U.S. based Etsy sellers with American bank accounts will be asked to verify their account information.
This news has had mixed responses, with some sellers feeling uneasy about the process of which they are required to verify. According to the announcement made on Friday, Sellers will be required to sign into their bank account – password and all – through a third party service called Plaid.
According to Etsy, they chose to use third-party service Plaid after extensive research that presented them as the most secure option. You can read part of the announcement that provides more information about Plaid below:
After researching many ways to verify bank details, we chose Plaid to ensure the verification process is secure. Here’s why:
Plaid is a leader in the industry and their current security measures are trusted by over 6,000 companies who use their services to safely connect financial accounts
Plaid’s information security program is designed to meet or exceed industry standards and is certified in internationally recognized security standards
You can also get more info about how Plaid keeps your info secure on their site here.
Keep in mind that while Plaid’s secure API allows you to instantly verify your bank account, you can also still verify your information manually by providing an account and routing number to be verified through microdeposits.– MurphyGardens, Etsy Community Manager
You’ll know when it’s your time to verify your bank accounts because you’ll be notified in two ways:
- You’ll get an email from email@example.com with the subject line “Verify your bank account to keep getting paid.”
- You’ll also see a yellow banner in the “Payment settings” section of your Shop Manager.