Amazon Sellers Forced To Re-Verify Bank & Account ID Info
Sellers are in a panic after receiving account deactivation warnings as INFORM Act verification goes awry.
Amazon sellers report a massive push to re-verify bank account and identity information with no explanation and very little help from support.
There have been multiple posts in the Amazon community forum as well, for example:
Impossible Bank Account Verification Requirements
We just received the below email, "Action required: Verify your Amazon seller bank account information." I've followed the instructions, but what Amazon is requiring is impossible.
We bank with American Express and our checking account linked to Amazon is held by the Registered Brand (corporation registered with Amazon). But, instead of requiring this, Amazon is requiring that my personal name be shown on the bank statement as the account holder. I've spoken with American Express and this is impossible as the bank account is owned by the Corporation.
How is this not a case Amazon foresaw before sending out these bank account verification letters? Any amazon seller that is brand registered will likely have the bank account under their LLC. The account holder information on my bank statement matches the registered legal entity on Amazon.
I got the same email an hour ago. I have no clue as what to do with this. My accounts have been the same for 2 years. There's nothing to verify and certainly no button to upload bank statements or such either.
The only thing it lets you do is replace the current default deposit method
We're facing exactly the same issue. I've uploaded the bank statement with the registered business name which has been the same for 2 years, but re-verification is declined due to " The name of the registered entity that you entered in Seller Central when you registered your account does not match the name of the bank account holder in the bank statement."
This means Amazon is requiring that my personal name be shown on the bank statement as the account holder which is impossible for the business account.
When I tried to verify the bank account, the only option is my personal name as the account holder's name.
I had the exact same issue and had to have my bank draft a letter with my name, company name, account number, etc explaining that I am authorized person on the account. It was a hassle for me. It was a hassle for them. And I have not received a response from amazon on that letter. That's really all I can do. My personal name simply isn't on a business bank statement. If Apple issues me a check I don't think Tim Cooks name is on the top of the check with Apple Inc.
The most likely reason for Amazon requiring re-verification is the INFORM Consumers Act which was passed as part of the 2023 Omnibus spending bill and goes into effect in June.
The INFORM act requires marketplaces to collect and verify the government-issued ID, tax ID, bank account, email and phone number of "high volume third-party sellers" that have 200 sales of new/unused items, totaling $5,000 or more in a continuous 12 month period.
An online marketplace shall require any high-volume third-party seller on such online marketplace’s platform to provide, not later than 10 days after qualifying as a high-volume third-party seller on the platform, the following information to the online marketplace:
BANK ACCOUNT - A bank account number, or, if such seller does not have a bank account, the name of the payee for payments issued by the online marketplace to such seller.
PROVISION OF INFORMATION - The bank account or payee information required may be provided by the seller in the following ways:
- To the online marketplace.
- To a payment processor or other third party contracted by the online marketplace to maintain such information, provided that the online marketplace ensures that it can obtain such information within 3 business days from such payment processor or other third party.
CONTACT INFORMATION - Contact information for such seller as follows:
With respect to a high-volume third-party seller that is an individual, the individual’s name.
With respect to a high-volume third-party seller that is not an individual, one of the following forms of contact information:
- A copy of a valid government-issued identification for an individual acting on behalf of such seller that includes the individual’s name.
- A copy of a valid government-issued record or tax document that includes the business name and physical address of such seller.
TAX ID.—A business tax identification number, or, if such seller does not have a business tax identification number, a taxpayer identification number.
WORKING EMAIL AND PHONE NUMBER - A current working email address and phone number for such seller.
It's also possible some sellers may be being asked to reconfirm their business details due to updated guidance from the IRS that marketplace have received about how to handle single member LLCs that had previously used an EIN for tax filing instead of a Social Security Number.
eBay sellers with single member LLCs and EINs were perplexed this year when they received 1099-Ks issued in the individual seller's name, not the LLC's name.
eBay told these sellers the IRS was now requiring them to use the individual name and SSN instead of LLC and EIN for single member LLCs - which may possible apply to some Amazon sellers as well.
For the 2022 Tax year, we have aligned issuing 1099Ks to IRS standards for Sole-Prop and Single Member LLC requirements. The IRS requires that Sole Props and Single Member LLCs file returns using the SSN of the owner, not the EIN of these entities. More information on this can be found here.
Did you receive a notice from Amazon to re-verify your identity and/or bank account information? Let us know in the comments below!