The collapse of Silicon Valley Bank today is awful news. I wonder what this means for Etsy sellers and funds.
@uniquegifts yes it processed right away and was not PayPal. As for if I will ever get the money, who knows but yes the sale itself was successful.
Did anybody get paid? Or is it some sellers that did not get paid? I have a special order for $550.00 for a repeat customer maybe I should tell them to pay by a PayPal invoice? I don't want to send it if my money its going to be held up for months or more.
I don't think anyone in the forums will know--only SOME sellers got the email and it said SOME sellers were not getting paid--so guess we have to take it for what it is right now. Those who did not get paid seem to mostly or all those who get paid daily. Who knows what will happen come Monday.
With the recent Esty info and not knowing when you might get those funds Etsy has left you no choice but to offer the customer a safer venue to make the purchase on with purchase protection through PayPal.
The email stated specifically "your deposit" couldn't be completed. So it wasn't just a general email about the issue.
Did anyone expecting a deposit today not get the email?
That is what I would do in this situation, trust PayPal and ask your customer if he/she is willing to pay that way. While this is normally against the rules, we are finding ourselves in very unusual circumstances right now and I would take the safer route to making sure I receive my money from my customer.
<raises hand> - I didn't get an email.
I didn't have a daily deposit scheduled but I set a manual and my dashboard says your next deposit is scheduled for Mar 10.
No email here but my 2 week deposit is set for monday. so we'll see
@ThePurplePuppy it was sent to everyone that is on daily deposits. They didn't want to send it to anyone that only gets paid on Mondays
Yes, I understood that--that is why I said "some". Since I only get deposits on Monday that is why I am waiting until Monday before I do anything. Especially something rash.
There are several threads about this right now. Not sure if this info will help, but this was posted by the FDIC and at least explains what's going on. Are etsy's deposits with this bank insured? I would think they're way over the $250K ceiling, but what do I know???
Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank.
All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.
Silicon Valley Bank had 17 branches in California and Massachusetts. The main office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023. The DINB will maintain Silicon Valley Bank’s normal business hours. Banking activities will resume no later than Monday, March 13, including on-line banking and other services. 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.
As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits. At the time of closing, the amount of deposits in excess of the insurance limits was undetermined. The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers.
Customers with accounts in excess of $250,000 should contact the FDIC toll–free at 1-866-799-0959.
The FDIC as receiver will retain all the assets from Silicon Valley Bank for later disposition. Loan customers should continue to make their payments as usual.
Silicon Valley Bank is the first FDIC–insured institution to fail this year. The last FDIC–insured institution to close was Almena State Bank, Almena, Kansas, on October 23, 2020.
they must be way over the 250K limit which is all they get refunded as that is the amount insurance will cover.
Hopefully they have several banks...
I heard that at least $1 Billion was not covered by insurance.
@EnergyPeace
It's like they have multiple accounts to keep them under the threshold under different holding companies so they probably aren't all the same customers.
Wow!
I saw the news about the SV Bank in California closing, but never thought there could be any connection and affect on Etsy and its sellers!
We had a credit union/banking crisis in my state in the 1990s, and it was not pretty.
I hope things look better on Monday.
it went bankrupt in a day! Hasn't happened in many years that a bank went under.
Etsy Exposure to Silicon Valley Bank
From eSeller 365
"The company didn’t provide any further details on how large its exposure is to SVB. However, unlike VC backed startups and smaller tech firms that may have most of their funds in one bank, Etsy should have the financial resources to make sellers whole relatively quickly."
You can read the entire article here.
https://www.eseller365.com/etsy-delays-seller-payouts-silicon-valley-bank/
without knowing how much of their assests was in that bank there is no way to know if they will be fine and can pay everyone. Hopefully they have several banks.
Likely they have several banks since they also have offices in other countries. And Etsy has daily positive cashflow. That, along with a line of credit, they should weather this until the situation works it's way out.
Cisco, Square and Pinterest are some of the other companies with ties to this bank according to this article.
https://www.nbcnews.com/business/business-news/silicon-valley-bank-collapse-news-updates-rcna74384
This sucks, just had several large orders in my other account and I need the money asap.
https://www.eseller365.com/etsy-delays-seller-payouts-silicon-valley-bank/ Just read this, hopefully this is a good sign that Etsy is in a good spot financially and will rebound from this - scary scenario for all sellers!
Here is another one Wells Fargo customers antsy with not seeing deposits to accounts. Wow one thing after another what could be next in the new year ??? https://www.nbcnews.com/business/business-news/wells-fargo-says-technical-issue-causing-customers-re...