Etsy Delays Seller Payments Due to Silicon Valley Bank Collapse — Retail Bum

Etsy has warned sellers of delays in processing payments due to the collapse of Silicon Valley Bank (SVB).

The online marketplace, which relied on the bank to facilitate some of its seller payments, is now working with other payment partners to disburse funds.

“We wanted to let you know that there is a delay with your deposit that was scheduled for today,” Etsy said in an email.

“We know that you count on us to help run your business and we understand how important it is for you to receive your funds when you need them,” the email continued. “Please know that our teams are working hard to resolve this issue and send you your funds as quickly as possible.”

The news comes just days after the California Department of Financial Protection and Innovation took over SVB to protect its customers’ assets and named the Federal Deposit Insurance Corporation (FDIC) as the receiver. FDIC formed a separate entity that insured the deposits of SVB account holders for up to $250,000 each, available for access by Monday morning.

On Sunday, Treasury Secretary Janet Yellen said that the government would not be bailing out the troubled bank and shareholders would not be protected. However, any costs arising from protecting uninsured…