Online marketplace Etsy says US sellers must verify bank accounts

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Etsy Inc said on Friday that US sellers in its marketplace will either have to verify their bank accounts themselves or do so through a third party, prompting sellers to worry about data privacy.

Vendors Reuters spoke to and several others on the chatrooms were annoyed by the move, saying the recommended mode of verification involved providing fintech platform Plaid with their username and password. banking password.

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« It’s so typical of Etsy on any controversial topic, but when it comes to our finances, it’s unacceptable, » said Dorothy Domingo, who has been selling functional pottery on Etsy since 2008.

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Plaid, which last year agreed to pay $58 million to settle a case alleging it used financial information without consent, did not immediately respond to a request for comment.

« With regard to anti-money laundering and related regulations in the United States, marketplaces like Etsy are adjusting their practices to further verify all registered U.S. bank accounts, » Etsy said.

The company also provided sellers with the option to self-verify their bank accounts with test deposits, but one seller said the process was cumbersome.

« Unfortunately, a less-than-stellar customer service and communication history contributes to an overall lack of trust in Etsy, » said one seller, who declined to be named.

This is the latest in a series of issues some sellers are having. A few went on strike earlier this year to protest an increase in transaction fees at Etsy.

Etsy is still a key source of income for its nearly 8 million active sellers, but some have said they are considering leaving the platform.

« I haven’t fully reopened my Etsy shop, as many of my wonderful customers have come to my website to support me. But with this, I might be forced to permanently close my Etsy shop, » said seller Kristi Cassidy (Reporting by Nivedita Balu and Praveen Paramasivam in Bengaluru; Editing by Vinay Dwivedi)