Large Sums of Money Vanish from Etsy Sellers’ Bank Accounts in Major Bill Payment Error

NEW YORK, NY - APRIL 16:  Etsy Sellers Market in Times Square celebrating Etsy's celebration going IPO at Nasdaq on April 16, 2015 in New York City.  (Photo by Paul Zimmerman/Getty Images for NASDAQ)
NEW YORK, NY – APRIL 16: Etsy Sellers Market in Times Square celebrating Etsy’s celebration going IPO at Nasdaq on April 16, 2015 in New York City. (Photo by Paul Zimmerman/Getty Images for NASDAQ)

An Etsy bill payment error resulted in large amounts of money being withdrawn from several sellers’ bank accounts and credit cards on Friday morning. While the company says the issue has been resolved and was not the result of fraud, the headache isn’t over for affected sellers because Monday is a federal holiday in the United States, and many financial institutions are closed

Etsy sellers are required to have a valid credit or debit card on file with Etsy in order to have a payment account. Boing Boing reports that complaints first began emerging in Etsy’s Community Forums and Twitter on Friday morning, when sellers began noticing amounts ranging from hundreds to tens of thousands of dollars had been withdrawn or charged to those accounts.

An Etsy representative posted with a brief message in its forum stating that the company was “aware of a bill payment error affecting a small group of sellers which resulted in some cards being incorrectly charged.” Then on Sunday afternoon, Etsy sent a longer explanation to sellers. The company said it has already refunded all incorrectly charged cards and will be sending deposits on Tuesday.

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SOURCE: Catherine Shu
TechCrunch