Heads up for Reverb (Etsy) sellers; they're having issues sending payments out

[HeHasTheJazzHands]

Apparently Etsy (Reverb) used Silicon Valley Bank, and with that shit load of fuck going on with them, some people aren't getting their payments sent out.

Can confirm I'm one of those people. They didn't even send any kind of email out. They posted a bulletin on top of the orders/purchases/listings page that I didn't see until yesterday lol.

I'm glad it wasn't a big money order at least

 

[ShredmasterD]

Gotta love how they paid out bonuses just hours before collapsing

 

[sleewell]

great job etsy lol. whats the point of listing something for sale if you wont get the money. <CME slids into the dms with a stupid low ball offer to buy it back>

 

[4Bolt71]

I'm in the EU. I'm only selling to EU. I only take Paypal. Is that shit happening to everyone or just in the US?

 

[HeHasTheJazzHands]

I'm in the EU. I'm only selling to EU. I only take Paypal. Is that shit happening to everyone or just in the US?

If they used Silicon Valley Bank to handle the funds, it's gonna probably eventually effect them

 

[Crungy]

Looks like I ordered my EMG pickup via Reverb in time, they already shipped it. Still, what a bunch of shit.


I'm taking my listings down.

 

[sleewell]

 

[Sir_Shreddington]

My wife's Etsy shop is experiencing the same thing. The FDIC supposedly stepped in and took over in order insure deposits with the bank, so I'm assuming there is probably just a delay in processing payments until the kinks get worked out. Part of me wants this to be the beginning of the collapse...

 

[ArtDecade]

My understanding is that they used the collapsed bank to do their transactions. So the money is still there somewhere, but I imagine they need to source a new bank and then back track the thousands of sales. This is going to take forever to get right. At the end of the day, I am out 200 bucks or so, but companies selling on Reverb are probably waiting on tens of thousands of dollars. It is a mess.

 

[tedtan]

The FDIC is supposed to be covering all deposits (not bailing out the banks, just covering the depositors), so you should get paid, it will just take a bit longer to receive the funds.

 

[ArtDecade]

The FDIC is supposed to be covering all deposits (not bailing out the banks, just covering the depositors), so you should get paid, it will just take a bit longer to receive the funds.

That is not the issue. The capital is still there and was never in the failed bank. The bank is strictly there as an intermediary for Etsy to do the transaction. This is because there are regulations around processing payments that marketplaces don't want to take on. Instead they partner with banks that already have the license in place. The issue is that Etsy needs to partner up with a new bank and backtrack all the thousands of transactions sitting in the void. The bigger problem for Etsy is that they are a major investor in the collapsed bank. That means they have probably have lost actual capital - but unrelated to the marketplace capital.

 

[tedtan]

That is not the issue. The capital is still there and was never in the failed bank. The bank is strictly there as an intermediary for Etsy to do the transaction. This is because there are regulations around processing payments that marketplaces don't want to take on. Instead they partner with banks that already have the license in place. The issue is that Etsy needs to partner up with a new bank and backtrack all the thousands of transactions sitting in the void. The bigger problem for Etsy is that they are a major investor in the collapsed bank. That means they have probably have lost actual capital - but unrelated to the marketplace capital.

That holds for transactions that have yet to be processed.

Transactions that were previously processed but yet to be paid out to sellers would be deposits in SVB and covered by the FDIC.

Investors will lose out, as the bank itself is not being bailed out, only the depositors.

 

[tian]

FWIW, I sold a guitar on Friday, shipped it yesterday and just received an email about 10 minutes ago that payment has been sent to my bank.

If there's an actual delay I'll update but seems to be moving same as usual at the moment.

 

[HeHasTheJazzHands]

I just got my payment sent to my bank so they must have gotten some help lol

 

[TonyFlyingSquirrel]

I just got an email from Reverb confirming my payout for a piece of gear that I just sold. Seems ok on my end.

 

[HeHasTheJazzHands]

I just got an email from Reverb confirming my payout for a piece of gear that I just sold. Seems ok on my end.

Seems like everyone waiting for a payment all got a confirmation all at once.

 

[ArtDecade]

Yup. Payment on my end too.

 

[wannabguitarist]

Can't even escape the braindead Reddit populist memes on a guitar forum

 

[Emperor Guillotine]

Reverb's funding pipelines through SVB were insured, of course, but only up to a certain amount of dollars (because, hey, that's how insurance works). Not every penny will be gotten back; and Reverb will be left scavenging to try to cover all of the payouts that they currently owe sellers. I'm estimating that Reverb got between $0.70-$0.80 on the dollar from their insurance payouts, which they miraculously seemed to have started receiving quickly so that they (Reverb) aren't at risk to go under financially as well due to the payouts owed to sellers.

But even then, my estimation still seems like a bit high given today's average/standard insurance payouts. Of course, we here in the USA also haven't seen something like this event transpire since 2008. (And we all know that receiving an adequate insurance payout for literally anything nowadays is like pulling teeth, which makes it all the more surprising that Reverb is getting the money to cover their asses so quickly.)

 

[wannabguitarist]

Reverb's funding pipelines through SVB were insured, of course, but only up to a certain amount of dollars (because, hey, that's how insurance works). Not every penny will be gotten back; and Reverb will be left scavenging to try to cover all of the payouts that they currently owe sellers. I'm estimating that Reverb got between $0.70-$0.80 on the dollar from their insurance payouts, which they miraculously seemed to have started receiving quickly so that they (Reverb) aren't at risk to go under financially as well due to the payouts owed to sellers.

But even then, my estimation still seems like a bit high given today's average/standard insurance payouts. Of course, we here in the USA also haven't seen something like this event transpire since 2008. (And we all know that receiving an adequate insurance payout for literally anything nowadays is like pulling teeth, which makes it all the more surprising that Reverb is getting the money to cover their asses so quickly.)

Reverb (and all depositors at SVB) will be getting all their funds back. You can't really compare this to a standard insurance payout: https://home.treasury.gov/news/press-releases/jy1337