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

[#1]

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 keep copying and pasting that and I don't think it proves anything. 

I hope the OP comes back and lets us know what happens after she emails Etsy.  

[bradgoodell]

@EccentricHandbags 

I didn't say it proved anything.  I said no one here has an answer to your question.  

"...why do they state that they will only refund pending orders?"

Only Etsy knows the answer to that question.  Until and unless someone from Etsy decides to address that in the forum, I'm afraid your question will go unanswered.

[CarpetCollectionAU]

And I will "copy and paste" this

" marketplaces can implement measures on collection, verification, and disclosure that go beyond what the Act requires. The Act specifies a floor, not a ceiling, on what marketplaces must do."

[TheVintagePineapple]

Since buyers are allowed 100 days to open a case and request a refund (on Etsy) and 180 days to initiate a CC chargeback, would those recent orders still be considered ''pending''?

[EccentricHandbags]

You can only open a case on a completed order, not a pending one.

[CarpetCollectionAU]

How many Cases have we seen reported in Forums where money is paid for an Order but the Order is never sent. Presumably, this is a "completed" Order if, using your interpretaton, "completion" means funds clearing from "Not Paid" to "Paid". There have been plenty of Cases opened and won on Orders that were never, in fact, "completed" as in sent and marked as complete.

Again, the "devil is in the detail" of the definitions. Some people are using one set of meanings, others are using a second. I certainly know which interpretation coincides with Etsy's actions, even though we are yet to see Etsy outline this in writing publicly.

[CelestialJewelleryUK]

Thank you.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." My daughter and I co-own the shop, and I have submitted official government IDs for both of us, along with an explanation regarding ownership. I can confirm there have not been any issues between Etsy and ourselves. The shop has been growing, and last year, we attended our first craft fair, which further linked our activities to our Etsy shop.

I have contacted Etsy multiple times but have not received a response. I would appreciate any advice or assistance you can provide.

Thank you.

[Arcforms]

The exact same thing happened to me today. I hold dual nationality, and my name appears on documents in both Latin and Greek Latin scripts. In Greek Latin, it’s written using Elot, which is simply a transliteration of the Greek characters into English letters. While the two versions of my name may look different, they are essentially the same.

I was given a 60-day period to resolve the issue. I submitted every document I had—my ID, passport, taxpayer ID, driver’s license, etc.—but every submission was rejected. I uploaded these files at least 15 times and repeatedly reached out to support, only to be told each time that my case was “under review.”

As the days went by, I lost over €2,800 due to refunds for digital file orders that customers had already purchased and downloaded. When the refunds started, I contacted Etsy support again. I was told the same thing: my case was under review, and I would be notified via email. One of the agents even promised to get back to me immediately, only to leave me on hold for over two and a half hours with no updates.

When I called again, another support representative was slightly more helpful but still reiterated that the issue was under review. I’m in complete shock that all these products—digital files customers had already downloaded—were refunded. Despite explaining my situation and providing all the necessary documents, nothing has been resolved.

[vintage4creations]

@Arcforms You might try starting your own thread and hopefully garner the attention of one of the moderators who may be able to put your case in front of the correct people who can help you.  

[SceneSnipsPhotos]

I am having a similar issue. I was not notified about the need for re-identification and only found out about it because a potential buyer told me that their purchase wasn’t  going through. I have tried 2 days in a row to fix the issue by re-connecting my card to the system but all I have been getting is the spinning wheel of doom.

I hope I can get this fixed soon because that would have been my first sell from my shop. 

-Anna Young- SceneSnipsPhotos.Etsy.com 

[vintage4creations]

@SceneSnipsPhotos be careful with messages from potential buyers saying their purchase isn't going through, many times it is a SCAM.  If a buyer is having a problem purchasing something that is an issue with the payment processor, credit card company or Etsy, not something you can take care of.  SCAMMERS target new shops, there are many such cases here on the forums.  

[CarpetCollectionAU]

@SceneSnipsPhotos I agree with @vintage4creations 

I checked your Shop and, if I were in the US,I could purchase as your Etsy Payments are active.

So, either the potential Buyer was located outside the US or this is a scam message.

However, there may be another issue. I see you have no Reviews since 2023, so, if you recently began selling again after a break, your CC may need updating. But this usually only prevents Payment Deposits being made, not Sales. 

But since mid 2024, all US based Etsy Sellers have been required to have their ID and Bank Account (not CC) verified via the Plaid System.

It could well be the case that you need to provide Etsy with ID documents with personal name and address which match those on your Bank Account.

[SceneSnipsPhotos]

I figured that it was, but I was hoping it wasn’t. I did take the proper precautions. I did go on a break with my shop and changed my products. So I may need to revamp it a bit. @vintage4creations @CarpetCollectionAU 

Thanks for y’all’s input! 

[Arcforms]

Did you find a resolution with your case?? 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 these policies anywhere on etsy.