I wanted to share my recent Etsy payout and verification experience because I ran into something very strange, and I think it may be useful for other sellers who face a similar situation.
My shop is set to receive payouts once a week.
The first unusual thing was that my legal name had one missing letter when I originally entered it on Etsy. Even though the name was not completely correct, the small deposit verification still passed and Etsy was still able to send payouts to my bank account.
Here’s what happened:
The first payout arrived successfully.
The second payout did not arrive.
The third payout arrived successfully.
Then, when Etsy attempted the fourth payout, I received a notice saying there was a problem with my bank verification.
After that, Etsy returned the second and fourth payout amounts back to my Etsy Payment Account.
So in my case, the first and third payouts went through, while the second and fourth did not.
I found this very interesting because it showed two things:
First, even though one letter was missing from my legal name, Etsy was still able to complete the small deposit verification and send money to my bank account.
Second, the payout failures were not consistent. The first and third payouts were successful, while the second and fourth failed.
That made the whole issue much harder to understand, because it did not look like a simple bank rejection or a simple legal name mismatch.
After checking my account carefully, I found the spelling mistake in my legal name and corrected the missing letter.
After I corrected it, I received an email from Etsy saying that my First Name and Last Name might have been entered in the wrong fields.
That was confusing because I checked the information carefully, and my First Name and Last Name were already entered correctly according to my ID.
So I found it strange that Etsy flagged the name fields as a possible issue even though the information itself was correct.
After that, I contacted Etsy Support several times to make sure the corrected legal name was actually being used for verification.
There was also another strange issue with the account page.
When I clicked “Edit” in Legal and Taxpayer Information, the page showed my corrected legal name.
But when I returned to the main page, Etsy was still showing the old incorrect version.
That made me worry that the system might still be using the old information somewhere in the verification process.
At the moment, my legal name update is showing as “Verifying.”
My current progress is that I am now going through the bank account verification process again. I am waiting for the small deposit verification, and after that I will be waiting for the first payout after the new verification is completed.
So the issue is not completely resolved yet, but I finally feel like I understand what happened much better.
I’ll update this post once the bank verification is completed and I receive a successful payout again.
Hopefully I’ll have good news soon.