As an Etsy seller, ensuring that your sales funds make their way promptly to your bank account is crucial for maintaining the financial health of your business. In this guide, we’ll walk you through updating and verifying your bank account information for Etsy Payments deposits effectively.

Updating Your Bank Information on Etsy

To maintain a seamless financial workflow, it’s important to keep your bank details up-to-date. Follow these steps to ensure that you’re all set for receiving funds from your flourishing Etsy shop:

1. Confirm Your Deposit Schedule: Before diving into updating your banking information, make sure you have a clear understanding of when to expect deposits. Set up or check your deposit schedule by following this simple guide: Setting Up Your Deposit Schedule on Etsy.
2. Match Names Accurately: The name associated with your bank account must correspond precisely with the one or the business entity listed in your Etsy Legal and Tax Information. This ensures compliance and minimizes issues with fund transfers.
3. Enter Correct Bank Format: Depending on where you’re located, the required format for entering bank details can vary significantly. To find out what specific information you need to provide for your country, consult this resource: Bank Account Formats by Country.
4. Understand the Waiting Period: If you decide to switch banks or change account details, be aware there will be a 5-day hold on earnings deposits post-update. This waiting period allows time for verification processes but does not apply if you’re simply verifying existing details that haven’t changed.

Special Considerations

• Sellers mandated to use Payoneer won’t follow these exact instructions; instead, manage banking details directly through the Payoneer Payment Account as detailed in Payoneer’s Support Center.

Bank Updates for US Sellers on Etsy

Updating your bank information as a US seller on Etsy is streamlined with the help of Plaid, a third-party service that securely verifies your banking details. Let’s walk through how to use this service effectively.

Understanding Plaid’s Integration

Plaid plays a key role in connecting your bank account to Etsy Payments. It’s essential to get acquainted with their security protocols and agree to their terms before proceeding:

• Familiarize yourself with Plaid’s Security Measures.
• By using Plaid, you are accepting Plaid’s Terms of Service and adhering to Plaid’s Privacy Policy.

When initially setting up your shop, you’ll be prompted to enter your bank details on the How you’ll get paid page.

Updating Your Bank Details via Etsy

For established shops looking to update banking info, here’s a straightforward process:

1. Visit Etsy.com and click on Shop Manager. If you’re using the Etsy Seller app, tap More.
2. Select Finances.
3. Click on Payment settings.
4. You’ll encounter two options from Plaid: choose between the Instant method (using online banking credentials) or the Manual method (verification through test deposits).

Instant Verification with Plaid

To connect and verify your bank account instantly:

1. Click Add or Connect your bank with Plaid.
2. In the pop-up window from Plaid, ensure your name matches what’s on file at your bank.
3. Choose Instant, then log in using your online banking username and password.
4. Look for and select your financial institution from the list.
5. Sign in utilizing the same credentials as you would for online banking.

If prompted while on a mobile device, follow instructions which may include verifying through your banking app. Should instant verification succeed via Plaid, this indicates approval by both parties—your financial institution recognizes Plaid as an authentic intermediary. Most sellers will enjoy immediate verification; however, some smaller banks might require 3–5 business days to finalize these details.

Troubleshooting & Manual Verification

Encountering errors or can’t locate your institution? Here’s what to do:

• If an error occurs or if no search results appear for your bank within Plaid’s interface, opt for manual verification by selecting Link with account numbers, which allows you to proceed via test deposits.
• Not comfortable using online banking credentials? The manual option is also available right away when initiating connection through Plaid by selecting it over “Instant.”

Remember that manual verification involves awaiting small deposits into your account then entering those amounts through Etsy’s platform via Plaid—an extra step but just as effective!

Manual Bank Verification with Test Deposits on Etsy

For those who prefer not to use online banking credentials or face issues with instant verification, Etsy provides an alternative manual method using test deposits. This process requires the use of your bank’s routing and account numbers.

Understanding the Test Deposit

Plaid will initiate a small deposit of $0.01 into your bank account, which serves as a verification tool. On your bank statement, you’ll notice this deposit accompanied by a unique 3-letter code that begins with a # sign (e.g., #XYZ). This code is essential for completing the verification process.

Identifying the 3-Letter Code

If you have access to online banking, monitor your account for this small deposit. When it appears, note the 3-letter code that comes with it—this is what you’ll need for verification on Plaid within Etsy’s Payment Settings. If online banking isn’t an option for you, contact your bank directly to obtain this code.

The Timeline

Typically, sellers receive the test deposit within 1 business day; however, some may need to wait up to 5 business days depending on their financial institution.

Guide to Verifying Your Bank Account

1. Go to Payment settings and select Add or Connect your bank with Plaid.
2. Choose Manual when asked how you would like to link your account.
3. Follow through by providing required information such as routing number and account number.
4. Specify whether it’s a personal or business account and provide other necessary details like name and type of account (checking or savings).
5. Authorize Plaid by selecting Authorize.
6. Monitor your bank account starting after one business day for the test deposit.
7. Once spotted, return to Etsy’s How you’ll get paid page and opt for Enter deposit code, where you’ll input the 3-letter code associated with the test deposit.
8. After entering the code, proceed by selecting Continue to finalize the verification process.

It’s important to note that this verification needs to be completed within a 30-day period. Failure to do so can result in suspension of your Etsy shop until you’ve verified your bank account details.

What if Verification Fails?

If you enter incorrect information multiple times during this process, your shop may be temporarily suspended as a security precaution. In such cases, it’s crucial to contact Etsy Support for assistance and resolution.

Why Manual Verification?

Etsy has introduced manual verification via Plaid as part of their commitment to safeguarding the community against fraud and ensuring compliance with legal standards. Although previously unverified, now bank account ownership must be confirmed for the safety of all parties involved.

Plaid has been chosen because it is a trusted leader in providing secure financial connections for thousands of companies worldwide. For those who decide not to use their online banking credentials for instant verification, Plaid’s manual method remains an effective alternative without compromising privacy and security.

Understanding Fund Holds After Bank Updates

When you make any changes to your bank details on Etsy, there will be a standard 5-day hold on funds from sales before they are deposited. This safety measure is in place to protect against unauthorized changes and ensure funds are sent only to legitimate accounts. If you’re simply verifying an existing account number already on file without making any changes, this hold will not apply.

Updating and Verifying Non-US Bank Accounts on Etsy

For Etsy sellers with bank accounts located outside of the United States, updating and verifying your banking details is a straightforward process. Here’s how to ensure you can receive payments from your sales without interruption:

Update Your Bank Account Details

1. Navigate to Etsy.com and click on Shop Manager. If you’re using the Etsy Seller app, tap More.
2. Go to Finances.
3. Click on Payment settings.
4. Select Edit next to Bank details, where you may be prompted to confirm any existing bank details.
5. Input your new bank account information.
6. Click Save to update your details.

Mandatory Verification for Non-US Bank Accounts

After entering new bank information, it’s essential that the account be verified before any funds from sales can be disbursed. For shops opened post-March 1st, 2022:

• Add your bank account post-first sale but within 30 days to avoid suspension of shop activities.
• You must verify these new bank details within 60 days or face potential suspension.

Handling Different Currencies in Bank and Payment Accounts

If there’s a discrepancy between the currency of your bank account and that of your Payment account on Etsy, additional steps are required for verification. Here’s what you need to do if your bank account operates in a different currency:

Uploading a Bank Statement for Verification

1. Go to Etsy.com and select Shop Manager.
2. Click on Finances.
3. Access Payment settings.
4. Choose Edit next to Bank details, verifying any existing information as necessary.
5. Under the section labeled Bank country & currency, opt for the choice that reads My bank account is in another currency (Note: Etsy can only process payouts in your Payment account’s currency).
6. Select Save and upload bank statement.
7. Either drag and drop or choose the file containing your latest bank statement.
8. Click on Submit to send your document for review.
9. Remember to hit Save once more.

Etsy will conduct a review of the uploaded statement typically within 5 business days, after which they will verify the connectivity between your Payment account and non-US bank account. Please note that when Etsy issues deposits, they will be made in the currency of your Payment account, regardless of any differences with your bank’s currency.

Verifying Your Bank Account with Etsy When Currencies Match

For sellers on Etsy whose bank account currency aligns with their Payment account currency, verification through a small deposit is required. Here’s how you can confirm your banking details to continue receiving payments smoothly:

Receiving the Test Deposit from Etsy

After updating your bank account information or when verifying your bank details post-first sale, expect to receive a small deposit within 5 business days. This transaction will be conducted by Etsy’s third-party payment partners such as Adyen or Envoy via WorldPay.

Steps to Get a Test Deposit After Your First Sale

To avoid any suspension of your shop, make sure to send your bank details within 30 days of making your first sale:

1. Visit Etsy.com and access Shop Manager. On the Etsy Seller app, tap More.
2. Head over to Finances.
3. Select Payment settings.
4. Click on Verify Account next to Bank details.
5. Choose Save & send small deposit.

Once this step is completed, you’re all set for the arrival of the test deposit.

How To Verify Your Bank Account with the Received Deposit

Upon the small deposit’s arrival in your bank account:

1. Return to Etsy.com and go into Shop Manager. If using the app, select More.
2. Navigate back to Finances, then go to Payment account.
3. Here you’ll find an option marked as Verify account, click it.
4. Enter the exact amount of Etsy’s test deposit that appeared in your bank statement (this could be listed under transactions from WorldPay, Envoy, or Adyen).
5. Hit Verify account

Alternatively, locate and use the Verify account button found under the Shop advisor section in Shop Manager, which directly leads you towards verifying your banking information.

If there are repeated errors when entering the deposit amount:

• You may need to upload a document substantiating ownership and details of your bank account—typically done by submitting a recent bank statement for review by Etsy’s team within about 5 business days.

By following these steps carefully and accurately entering your test deposit information on time, you ensure uninterrupted service and receipt of funds from sales made through Etsy’s platform.

Troubleshooting Issues with Bank Account Verification on Etsy

1. If You Don’t Know Your Old Bank Account Number

Etsy requires you to enter your old bank account number for security reasons – it’s a fraud prevention measure that cannot be bypassed by Support agents. Here are some avenues to retrieve your old account number:

• Check Old Checks: The bank account number is the second set of numbers at the bottom left corner of a check. Plaid offers an explanation on understanding these numbers.
• Contact Your Bank: Even if your account is closed, the bank should be able to provide you with the old account number.
• New Shop: If all else fails and you can’t obtain your previous bank account number, you may need to create a new shop using a different Etsy account.

2. If You Can’t Find Your US Bank in Plaid

Not all banks are listed in Plaid. If this is the case:

• Opt for Link with account numbers within Plaid.
• A $0.01 deposit will be made into your account by Plaid, which includes a 3-letter code in its description.
• When entering this code on Etsy, make sure to select Connect via Plaid and not Edit.

3. Error Messages Within Plaid

If an error occurs while using Plaid:

• Wait a few minutes before trying again as it might be due to temporary connectivity issues.
• Verify that you’re entering the correct login details or banking information.
• Enable third-party integrations within your online banking settings (consult your bank if needed).
• Try from another internet connection location without using VPNs as they can interfere with verification processes.
• Contact Etsy Support if problems persist, including detailed information about error messages and steps taken.

4. “Come Back Later” Message During Verification

If prompted with “Come Back Later”:

• Wait until at least the next day before trying again; don’t worry even if you’ve received the test deposit already.
• Note: Etsy Support cannot remove this message for you.

5. Incorrect Deposit Amount Entries

When verifying with deposit amounts:

• Ensure accuracy when inputting the small deposit amount reflected on your bank statement.
• Make sure you are entering the amount from the most recent deposit, particularly if you have initiated more than one verification process.
• Remember, it may take up to 5 business days to receive the small deposit after updating your bank account.
• If you check too soon, you might see an old deposit. Wait for a new small deposit before attempting verification.

6. No Deposit Received

If you haven’t received the test deposit:

• Be patient and wait for at least 5 business days.
• If after this period there’s still no deposit, go back to Payment settings and select Edit next to Bank details to try sending another deposit.
• For US sellers: You can attempt this up to three times before needing to contact Etsy Support for further assistance.
• For sellers outside of the US: Look out for deposits with descriptors such as “Etsy,” “Adyen,” “WorldPay,” “Envoy,” or “Stitching Custodia(n).” If resending doesn’t work, an option should appear allowing you to upload a bank statement. After uploading and submitting your bank details again, Etsy will review your documents within a few business days.

7. Bank Account Verified But Shop Still Suspended

If shop suspension persists despite verifying your account:

• Reach out only after hitting maximum attempts or failing verification within 60 days. Your shop will be suspended in these cases.
• Following unsuccessful attempts, you’ll be prompted to upload a bank statement for final verification before reinstatement is possible. This review takes about 5 business days.
• Should all requirements be met (including locating the small deposit), verify through Etsy.com—not the Etsy Seller app—and then contact Support if necessary; remember that while suspended, account verification isn’t possible through the app.

Updating Bank Details When Moving to a Different Country on Etsy

When you’re an Etsy seller planning to move your bank account to a different country, the process for updating your bank details may vary depending on your location and the region you’re moving to. Here’s what you need to know:

For Sellers Within the Eurozone

If both your current and new bank accounts are within countries that are part of the eurozone, you can seek assistance in updating your banking information:

• Contact Etsy Support: Use this contact link specifically provided for sellers in this situation needing help with changing their bank account country within the eurozone.

For Sellers Outside or Moving Out of the Eurozone

If you’re located outside of the eurozone or if one of your bank accounts is outside of it, changing a bank country directly is not possible due to regulatory reasons. In such cases, here’s what you should do:

• Open a New Shop: You’ll need to create a new Etsy shop associated with a bank account in your new country.
• Start Fresh: Unfortunately, because accounts cannot be merged nor can shop data be transferred from one account to another, this means starting anew with listings, reviews, and sales numbers.
• Linking Shops: To maintain continuity for returning customers or those interested in your reputation:
• Consider including a message or link in your new shop that directs customers to your original shop. This way they can view past reviews and sales history.
• Make sure that any promotional materials or external links that pointed at the old shop are updated accordingly.

It’s important when opening a new shop due to moving countries that you also consider local regulations and tax obligations as these may differ significantly from one place to another. Always ensure compliance with Etsy’s policies as well as local laws when operating an online business across different countries.

Wrapping Up:

In conclusion, navigating the complexities of updating bank account details on Etsy can be a nuanced process, especially when dealing with international banking changes or forgotten account information. However, by following the structured guidelines and troubleshooting steps provided in this guide, Etsy sellers can tackle these challenges with confidence. Remember that patience and attention to detail are key when verifying new banking information or starting fresh with a new shop in another country.

By staying informed about Etsy’s policies and taking proactive measures to ensure your banking details are current and accurate, you not only maintain the financial health of your business but also secure the trust of your customers. Whether you’re making minor adjustments or undergoing significant transitions, keeping your shop’s financial infrastructure in check is an essential part of thriving on Etsy’s vibrant marketplace.

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