Suspended Ukrainian shop for moving to USA - Unjust Account Suspension after Etsy support help

[CityNeon]

Hello Etsy Community, 
My name is Dima, and I was a proud member of the Etsy community. My journey with Etsy began as a beacon of hope after my family and I fled our homeland of Ukraine to escape the ravages of war. Arriving in Chicago, we sought solace and stability, and my Etsy shop was platform to rebuild our lives.

With the assistance of Etsy support , we diligently navigated the process of transitioning our shop to USA for paying taxes and continue business legally to reflect our new circumstances . However, our hopes and dreams were shattered when I received the devastating news of my Etsy account suspension.

The suspension of my account came as a profound shock, leaving me and my family in a state of despair and uncertainty. As a family who fled war-torn Ukraine, our Etsy shop was not just a source of income but a lifeline—a means to rebuild our lives and secure our future in a new home.

Despite our efforts to comply with Etsy's policies and regulations, our account was suspended without warning or justification. This unjust action has not only stripped us of our livelihood but has also left us questioning the integrity of the platform we once trusted.

I implore the Etsy community to stand with me in solidarity and demand transparency and accountability from Etsy's Trust & Safety team. Small business owners like myself deserve to be treated with fairness and respect, not subjected to arbitrary account suspensions that threaten our financial stability and well-being.

I call upon Etsy's leadership to reevaluate their policies and ensure that the human impact of their decisions is considered at all times. The Etsy community is built on the creativity, passion, and hard work of individuals from all walks of life, and it is imperative that we uphold these values in every decision we make.

I urge you to join me in amplifying this message and advocating for change within the Etsy platform. Together, we can ensure that no one else has to endure the anguish and uncertainty caused by unjust account suspensions.

Thank you for your support and solidarity.

Warm regards,

Dima 
CityNeon

[TumblerTumblerTrends]

I can attest to Dina's incredible skill, one of my all time favorite Etsy purchases was a neon sign from his shop. There's zero reason his account should be suspended, and this is impacting his livelihood while already dealing with the stress of escaping a war. Etsy, please prioritize reinstating his account.

[CityNeon]

I really appreciate your support, thank you very much. I hope this gets resolved.

[Jewels2at]

Did they tell you the reason it was suspended?

[CityNeon]

They sent the standard reasons and I think it's a standard letter as I was very afraid of breaking any rule. One of them says seller data mismatch and I think they are right here, as I asked for support to help me with the process of transferring the store to the US, I wanted to do business honestly and was worried about it because I must pay taxes. After a couple of requests they said that everything is fine and the store is now tied to the US and closed the request and I guess that the ban was received because my Ukrainian documents are there, but as I understand the computer checks it all - I filled out an appeal and got the standard answer that I am permanently suspended, now I don't know what I can do 

[PinkBirdCottage]

I am so sorry this happened to you. I understand how shocking and scary it is. Etsy has acknowledged that innocent shops do indeed get taken down by mistake. I hope this gets resolved very quickly in your favor! All the best, keep the faith. 

[CityNeon]

I hope there's a chance this mistake will be resolved. Thanks for your support.

[audreytherese]

"With the assistance of Etsy support , we diligently navigated the process of transitioning our shop to USA for paying taxes and continue business legally to reflect our new circumstances"

Did you try changing the country your bank account is in? Like from a Ukranian bank to a US bank? Because they won't let you do that here. 

How to Update and Verify Your Bank Account for Etsy Payments Deposits – Etsy Help

My new bank account is in a different country

If you’re anywhere else

It’s not possible to change a bank account to another country.

The best option is to open a new Etsy shop. With your new shop, you can set your bank account to one in your current country. However, you can’t merge Etsy accounts or transfer information from your original shop to your new shop. This means that shop data, including listings, reviews, or sales numbers, can't be moved over to a new account. You can include the URL for your original shop in your new shop to display your reviews and sales numbers to shoppers.

[CityNeon]

You're right, I thought the same too, but it seems Ukrainian shops receive money in dollars, so after some time they said it's possible. I haven't changed my bank account yet because support hasn't replied on how to do it properly.

[CarpetCollectionAU]

Edited because @audreytherese asked the same question.

It certainly looks like the OP kept the same Shop but attempte to change Banking Details to reflect a US Bank/Residency etc

It is my understanding that the "same currency" rule relates to Shops which are paid in Euro.

Ukrainian Shops which had stand alone Pay Pal were not "paid" by Etsy. Recent changes have allowed Etsy Payments

"Sellers in Argentina, Chile, Japan, Peru, Thailand, or Ukraine

You can accept Etsy Payments with a Payoneer Payment Account"

So, is it posible for you to revert to your old Ukranian Banking Details, assuming you still have one, and connect to Etsy Payments through Payoneer?

Shop location can remain US  and "Ships From" needs to accurately reflect the Country the item is being shipped from.

[CarpetCollectionAU]

@CityNeon I just read this

" I haven't changed my bank account yet because support hasn't replied on how to do it properly."

I think this is your issue. Support has not replied on "how to do it properly" because, actually, it cannot be done. I am unsure about the advice that Ukranian Shops are paid in US Dollars, but I suspect there is some sort of confusion/misunderstanding here.

I would be interested in exactly what you did change that triggered the Shop closure because, if you have not changed the Bank details, you should still be able to operate as in the past.

It sounds like you have updated your account with US SSN / Tax and Legal information, but the Bank information remained Ukrainian? That could be the problem as documentation does not "match".

[CityNeon]

@CarpetCollectionAU ,
Thank you for your reply, Payoneer account provides account number and routing number for receiving payments. Also Payoneer use US bank for receiving payments. I think I can still link the US bank, I've done a little research on this but I'm not 100% sure I'm right, but first I'd like to know where to find a manager who can see the whole situation ( . I just wanted to pay taxes and do everything properly, I would put it all back and find a way to pay taxes, I didn't know this would happen because support said it could be done and it seems real to me since both markets get money in dollars and it is possible to update the settings to US, I have seen that it is real.
I appreciate you taking your time to reply.

[CityNeon]

@CarpetCollectionAU ,
I was afraid to change any data, support said they changed something in the store and it's in the US zone, but I was afraid to change anything without their permission. They closed that service request and I opened a new one, but someone blocked me before I got a reply . I am ready to attach all documents but how to do it now (

[CarpetCollectionAU]

@CityNeon I understand how upsetting this is for you and your family. Unfortunately, I think Support does not understand the difference between Payoneer, as the "Payment Processor" receiving / sending funds in USD and a Shop's Banking Currency setting.

Years ago, I used Payoneer and GoShoppier for a Shop based in Turkey, before Etsy Payments were allowed. We always received funds into our Turkish Bank Account in TRY, no matter the Currency these were reveived and sent in. Somehow, I suspect Support does not understand the documentation they were reading from when they told you that you could change a Shop's Currency after moving Countries. Yes, it is possible to physically do this as the "system" will let you enter these details, but that, unfortunately, does not guarantee that the "system" will then approve it.

I would be very interested to see the outcome of your appeal and do hopw all works out for you

[audreytherese]

"I thought the same too, but it seems Ukrainian shops receive money in dollars"

Being paid in the same currency is not the same as having a bank account in that country. In Zimbabwe they only use the US dollar for currency (the Zimbabwe dollar crashed in 2009 and became obsolete). But if I fully moved to Zimbabwe, my bank would be in Zimbabwe, and it wouldn't matter that I was staying with the US dollar. It only matters where the bank is based out of. I would have to create an all-new shop if I moved there and wanted to keep selling on here (I have no idea if Zimbabwe is on the list of countries that can sell here, just used as an example because I know they use the US dollar). 

The only time you can change countries on Etsy is when you stay within the Eurozone. 

You say you didn't change anything yet because you were waiting to hear, so that may not be relevant here at all, but just noting to keep in mind going forward. 

"Also Payoneer use US bank for receiving payments. I think I can still link the US bank"

It doesn't matter what kind of bank Payoneer uses, you can't use Payoneer to verify an account to a bank in the US, you must use Plaid. 

If an Etsy rep tells you that you can, they are wrong. They are probably not understanding the question. 

In case you get whatever the issue actually is straightened out, please know that regardless of Payoneer or Etsy payments, or anything else, you cannot change the origin country that you bank with on Etsy (not from Ukraine to US). If you get your shop back open and want to keep it, then you need to stay with a Ukranian bank. You can still pay taxes and do things legally in the US, but just need to disclose that you have foreign accounts when filing your yearly return (I would assume you'd hire an accountant to help you with this so it is done correctly). If you go that route, you could look into possibly having funds moved from there to a US bank outside of Etsy (it will likely have conversion fees, but that I couldn't say for certain). 

[CityNeon]

@audreytherese , When they changed my store to the US, I can see the 1099 form which is important, and with European and Ukrainian stores removes the VAT which takes up a lot of the cost. Now basically all that is left to do is add my SSN, personal info and ID and change my bank which can also be done with no problem and Plaid works in the store I have seen it. I have seen people who have done it and then I was advised to contact support, but as we can see it turned out badly.
Thank you for your replies, I appreciate it

[PinkBirdCottage]

I would be petrified to change my banking info as I have read sooo many issues with people doing it. You were right to be afraid. Good news is it sounds like this is your issue and eventually you will get it solved. I can't help, but I'm rooting for you!

[steelhipdesign]

I'm not an Etsy apologist - this isn't completely about their policies.  They have to follow INFORM Act laws that dictates the level of scrutiny for online seller's identity.  Etsy's own security is also predicated on accounts not being able to transfer from one country to another.  I've seen many sellers in forums here and offsite needing to start from scratch with a new seller account when they moved to another country.  I think Etsy used to tolerate it to some degree but now they don't.  One reason for that was banned users, attempting to open again, signing up in a country with lax ID laws and then using that shop to trade remotely, using a proxy, from the US or other countries with high ID requirements.  

I'm sorry for your situation but Etsy by law, requires a third party to also sign off on your ID credentials for their compliance.  Everything you provide to Etsy is used as ID credentials including your bank account, credit/debit card, photo ID, devices, "digital signature", connection and tax ID.  

[CarpetCollectionAU]

@steelhipdesign Yes. All of this is correct.

What I find disturbing is that "Support" does not seem to understand one of the most fundamental financial regulations and has, consequently, given the OP advice which has resulted in closure of his Shop. Understandably, he is very concerned for the future of his legitimate and successful Shop. Obviously, he tried to "follow the rules", but this is difficult if those rules are not even understood by the platform "Support" on which he relied.

[CityNeon]

@CarpetCollectionAU @steelhipdesign 
Yeah, I wanted to do it right, but it's better to do nothing as it turns out. Thanks for the opportunity to talk to everyone here, you're really helping me with all this stress.

[CraftyCornishMaids]

Etsy says you can't change country  (unless you move from one euro country to another)

This is not anything specific to you, it applies to everyone.

......

for many international money laundering laws, you have to have ID and banking, and tax numbers etc that matches,

so if you set up your shop as ukrainian, you can't add a USA ssn

I can't do it, if I moved from UK to USA

and you can't do it if you move from somewhere like USA to France,

You either keep the shop the way it was, or open a new one.

https://help.etsy.com/hc/en-gb/articles/115015775908-How-to-Update-and-Verify-Your-Bank-Account-for-...

extract

My new bank account is in a different country

If you’re in the eurozone

If your current bank account is located in the eurozone of Europe and you’re moving to another country within the eurozone, contact us for help updating your bank to the new country.

If you’re anywhere else

It’s not possible to change a bank account to another country.

.........................

The fact etsy support led you to believe it could be done, is disgraceful

[CarpetCollectionAU]

"The fact etsy support led you to believe it could be done, is disgraceful"

I could not agree more.

But just another example of the communication issues may experience with Support.

The simple answer was "No". Moving Ukraine to US either needed OP to keep Ukraine Banking and alter "Ships From" or open a completely new Shop with his US SSN, personal info,ID documents ID and new new US Bank details.

[Frapperie]

@CityNeon @CraftyCornishMaids 

That's incorrect, it is possible to add a US social security number or another country's tax ID number. Every shop should have this option since one can be a resident in one country but still have a tax reporting responsibility in another country.  In settings go to

Legal and tax information
click on ADDITIONAL TAXPAYER ID.  There's a drop down menu with various countries to choose from.

I moved from USA to France.
I have both my US social security number AND my French business ID tax number entered on the 2 shops that I opened in the US. At that time support had to help me with getting that sorted.

I can also enter my US social security number for the 2 shops I opened in FRANCE by using the "additional taxpayer" option.

The banking issue shouldn't be an issue at all since technically Ukraine is set up for USD with a US bank account linked via Payoneer.  There is no Ukraine bank associated to the seller's account.  See the help section.

This might just be an issue of approving the seller's documents so possibly Etsy will be in contact asking for more documents. Or it might just be an error, that also happens.

[CarpetCollectionAU]

OP's Shopfront is showing Etsy Payments

[Frapperie]

@CarpetCollectionAU 

I just edited my post because the Ukraine has a specific special situation.
Their Etsy Payments are being run through a US bank account from what I understand.  Their currency is USD, their banking is done using a US bank routing number. That is why support said it's possible.  Ukraine shops enter a US bank routing number rather than a Ukraine bank account number.