Etsy sellers are being impacted by the collapse of Silicon Valley Bank in the worst possible way. The ecommerce marketplace popular with handmade artists told sellers in an email that processing payments to their accounts could be delayed.
NBC News reports that Etsy is not providing a timeline for when payments to sellers would resume.
Here’s a look at the email Etsy sent sellers, according to one seller who announced the message on Reddit:
“Hi there, We wanted to let you know that there is a delay with your deposit that was scheduled for today. This delay was caused by the recent developments regarding Silicon Valley Bank, who Etsy uses to facilitate disbursement to some sellers. We are working with our other payment partners to issue your deposit as soon as possible.We apologize for any inconvenience or disruption this may have caused. 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. Please know that our teams are working hard to resolve this issue and send you your funds as quickly as possible.No further action is needed from you at this time. Please feel free to reach out to our Help Center 24/7 with any questions you might have.”
Not every Etsy seller is affected by the collapse of SVB.
SVB Collapse Delaying Payments to Some Etsy Sellers
SVB was taken over and closed by the California Dept. of Financial Protection and Innovation on Friday following a tumultuous week for the bank. All insured deposits up to $250,000 will be available on Monday morning after the FDIC announced later on Friday that it was named as SVB’s receiver.
The FDIC says that Silicon Valley Bank locations in California and Massachusetts will resume operations on Monday, March 13.
“Silicon Valley Bank’s official checks will continue to clear. Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers have continued access to their insured funds,” the FDIC announced.
