HELP - Etsy refunded completed sales because I couldn't verify my identity in time

[BeetleGlassArt]

I'm a new seller on Etsy and I'm pretty disappointed. I received a notification in November of 2024 that I had 60 days to verify my identity. This was no easy task. I've been ill and practically bedridden on and off for the past four years. I started my small business because I'm finally starting to feel better but everything is still hard to do because of muscle atrophy and the last bit of lingering illness. My license expired in 2022 and I was way too sick at the time to do anything about it. By the time I felt good enough to go get an ID and could find an affordable wheelchair to rent, I was too late to verify my identity before Etsy put my shop in vacation mode. The notification stated that pending sales would be refunded. But Etsy refunded some of my completed sales that were completed over a month ago. Is there anything I can do? Is there any way I can contact Etsy?

P.S. I have a temporary ID but my actual ID might not arrive for 8 weeks. Etsy doesn't accept my temporary ID.

[EccentricHandbags]

You aren't the first to have this happen.  @thatregina Here is another one that needs to get their money back.  

[CelestialJewelleryUK]

Subject: Request for Assistance Regarding Holiday Mode and ID Verification

Hello,

Since November 2024, I have been trying to confirm my ID as requested. My shop has been placed in "Holiday Mode." The shop is co-owned by my daughter and me, and I have submitted official government IDs for both of us. 

I have reached out to Etsy multiple times but have not received a response. I can confirm that there are no outstanding fees to pay. I would greatly appreciate any advice or assistance you can provide.

Thank you.

[Arcforms]

I am in the exact same issue. Despite my efforts to seek assistance, the only response I've received is that these are the policies. However, at no point was I informed as a seller that this would result in a refund of all sales after 60 days neither I can find this policies anywhere on etsy

[EccentricHandbags]

The others that this happened to, it involved a name change.  Did you change your name?

[BeetleGlassArt]

Etsy requested identity verification when I was close to hitting $500 in sales. But it also requested the verification when I tried to change my name listed. For some reason my first and last name were both listed as my first name and nothing was listed for my last name. I'm not even sure how that happened. But yes, I attempted to correct that and Etsy requested a verification of my identity.

[bradgoodell]

There are new and recent laws in place that require marketplaces like Etsy to verify a seller's identity.  It is unfortunate you were unable to get the information in on time. 

@EccentricHandbags She said her license had expired in 2022.  I am assuming she is talking about her driver's license or state ID.  Legally Etsy can't use expired licenses as ID. 

[EccentricHandbags]

I thought once you showed a valid ID you didn't have to send Etsy a new one if it expired.  You have already proven who you are once and its enough.  This shop opened in 2014.

[PlatypusDream]

@EccentricHandbags 

Etsy recently asked sellers to reverify their identity.

I got a request, but many others did as well.

[GroundZeroCreations]

@EccentricHandbags I am pretty sure the law requires Etsy to reverify identity yearly now. 

[BeetleGlassArt]

I understand why they require identity verification. But the notification clearly stated that pending sales would be refunded, not completed sales. Etsy refunded 3 completed sales.

*EccentricHandbags - I can't reply directly to your recent comment. Yes, my shop opened in 2014, but I mostly didn't do anything with it until just recently.

[EccentricHandbags]

@BeetleGlassArtThat is as it went for the others.  Etsy says it will only be pending orders and then refunds everything going back 60 days.  It is a bot taking care of this, not a human.  People are getting their money back, but it hasn't happened quickly enough sometimes.

[bradgoodell]

@EccentricHandbags  The way the law is written, I believe companies need to check "periodically".  

This shop may have opened in 2014, but the OP said she was a "new seller" so I don't think it has been active all this time. 

[EccentricHandbags]

Could someone else try to get a mods attention.  I tried thatregina because its the only one I remember. 

[CarpetCollectionAU]

@EccentricHandbags This OP does not have valid and curent ID so there is not much and Mod or Community Specialist can do to assist.

Whilst it used to be the case that one could open a Shop and never update anything other that CC, new laws in most Countries now require Marketplace Facilitators to conduct more rigorous ID verification than was once the case.

Sellers from most other Countries except US and Canada used to be able to open and sell without validating ID and Banking information. Do you recall the outrage expressed here in Forums a few years ago when Etsy announced that all US Sellers were required to verify via the Plaid process? This was just bringing US Shops in line with US and International Banking regulations which most other Sellers in ther Countries had already done when on-boarding.

Unfortunately, in the OP's case, I do not think anything can be done about the ID issue.

As far as the retrospective refunds of Orders 60 day back, Etsy said funds for "Pending Orders" would be held until ID was verified. Etsy did not say funds for "Pending Orders" would not be refunded in the event that the required ID was not provided / approved.

As far as the retrospective refunds are concerned, it does seem that Etsy has programmed the system to refund back as far as 60 days. I am wondering if this 60 days is the same 60 days as is mentioned when originally asking for ID documentation.

Sellers have reported being advised that they have 60 days to "verify". It now looks like Etsy is refunding Orders back to the date of the request (60 days) when the ID verification is not provided within that time. In other words, anything sold after the ID was requested is being refunded when the ID is not provided / approved.

[GroundZeroCreations]

Here is a link on Etsy about the verification process: https://www.etsy.com/seller-handbook/article/1241780194948?ref=handbook

[BeetleGlassArt]

@EccentricHandbagsThank you for the info! That's terrible the same thing has happened to so many other sellers. Do you know how they appealed to get their money back?

[TheHomespunLoft]

@BeetleGlassArt 

Since Etsy refunded the customers there is NO money to get back. And yes that is terrible that no one had to return an item to you-- but you do say no returns in your shop and on the sold listings I looked at.

Am Sorry you don't feel well but 60 days seems a reasonable time to get your ID situated. Hopefully when you get your new ID etsy can reinstate your shop.

[BeetleGlassArt]

Etsy definitely owes me money because those sales weren't pending. Their own policies would dictate that they incorrectly refunded customers. It doesn't matter if my shop policy includes no returns. That has nothing to do with this.

I also never said 60 days wasn't reasonable. I was sharing the facts of the situation so that everyone commenting would know that it wasn't negligence as to why I didn't meet the deadline- I couldn't meet the 60 day deadline due to severe illness, disability, and trying to find an affordable wheelchair to rent so I could actually leave my home.

[CanningCrafts]

I'm pretty sure a shop this past week, one that Etsy took $4000+ from, did get her money refunded from Etsy. That was a name verification issue as well, but details perhaps a little different from this case. Etsy refunded her completed orders too, but the seller contacted them numerous times & posted in the forums that Etsy did give her that money back.  

[EccentricHandbags]

@TheHomespunLoftYou should read the whole thread.  Etsy bots are refunding everything going back 60 days when people try to change their name.  This isn't something she did wrong.

[CarpetCollectionAU]

@BeetleGlassArt Did you read my post above.

It is undoubtably unfortunate that circumstances combined to prevent you obtaining and providing the required documentation.

But, Etsy gave you 60 days to do so and said funds would be "held" until such time as the ID eas provided and approved. Etsy did not say these funds would be "released" after 60 days. They said that you had 60 days to provide the ID.

So, any funds received between day 1 and day 60 after the request for ID were deemed to be unable to be deposited into an unverified Bank Account and, consequently, returned to the Buyer as Etsy can not, legally, hold these funds, nor can they deposit them into your Bank Account.

[CarpetCollectionAU]

@EccentricHandbags I think you will find that @TheHomespunLoft did read the whole thread and it is you who are missing some key facts.

Unfortunately, in this instance, the "bots" are working exactly as they should.

The OP has not verified their Bank against their ID. Therefore, Etsy cannot deposit funds into that Bank Account. Nor can Etsy keep the funds. Hence the refunds for any Orders made in the intervening 60 days.

I suspect all the Sellers with ID verification issues as the result of a "name change" or "marriage" have been caught in the same "loop".

But, in these cases, it was that the ID could not be "bot" verified within the 60 days, but they did provide ID. That is why an appeal did work for at least one Seller who received her $ 4000 back from Etsy.

In the OP's case, even a manual review by a real human will not help.

[EccentricHandbags]

@CarpetCollectionAUI don't understand why you think it is OK for Etsy to refund completed and delivered orders. 

[CarpetCollectionAU]

@EccentricHandbags I did not say this was OK.

But what I did say was that the situation was completely different to the "name change" verification issue which has seen some Sellers recoup the funds which were refunded.

This OP is not verified. Therefore, there is no way Etsy can send the money to her nor can Etsy retain the funds indefinately.

I just do not want to give the OP "false hope" because, as she openly admits, she cannot provide the ID Documents required. She was asked for these 60 days ago.

Her situation is completely different to the "name change" ID problems which were handled by the same system "bots" but which were resolved, when appropriate, by manual investigation.

IMO the issue lies with the time it takes Etsy to process these ID Verification documents, which is often longer than the 60 days the Sellers are allocated to resolve the issue, particularly when the issue is more complex than the "bot" programming can handle.

The confusion is further compounded by Etsy's incompetent wording of the notification sent to Sellers. It reads "pending orders" but as the Shops are on forced Vacation, there should be no "pending orders".

I believe the intention of the notification is to say "pending funds from orders" in which case the funds for Orders up to 60 days back are subject refund because there is no valid / verified Bank Account to send the funds to.