Poshmark Banking Partner Switch Disrupts Payments, Leaves Sellers Waiting Weeks For Funds

Some Poshmark sellers have been waiting weeks to receive their earnings after a change in banking partners disrupted payment processing, delaying direct deposits and checks and leaving those affected struggling to get answers about their missing money.

The company acknowledged the problem October 2, with its system status page initially describing it as an issue affecting a subset of direct deposit requests due to a processing problem with its banking partner.

But a more detailed explanation shared by a seller on Reddit October 10 revealed that the problems began during a transition to a new banking partner and affected more than just direct deposits.

We recently transitioned to a new banking partner to process Seller redemptions. During and after that transition, some of our redemption payment files could not be processed, which delayed deposits and checks for a number of Sellers, including you. We have since reprocessed these payments.

Poshmark says it has also moved seller redemptions to an additional payment partner to process direct deposits, though it's not clear whether that is a temporary workaround or a permanent change.

Affected sellers were told the majority of reprocessed direct deposits should arrive by October 14, with some taking until October 15 due to the Columbus Day banking holiday on October 12. Those who requested checks may have to wait longer, as Poshmark says they will be mailed once processing is complete, with additional time needed for delivery.

The company normally says direct deposits take 2-3 business days, but some sellers have reported waiting two weeks or more for their earnings, with repeated attempts to contact support providing little information about when they would be paid.

In one Better Business Bureau complaint, a seller said they requested a $259.20 withdrawal September 21 and still had not received the money by October 2. Poshmark initially promised a response within 24 hours but failed to follow up, later providing generic responses that did not address the missing payment. The money finally arrived October 7, approximately two weeks after the original request, but the seller continued to press for an explanation and compensation for the delay.

Another seller reported requesting a $1,960 direct deposit September 27 that had still not arrived by October 9, despite Poshmark telling them the payment had been reprocessed and should arrive within another 1-2 business days. The transaction was marked completed in their Poshmark account even though the money was not in their bank, and support had not provided an ACH trace number to help locate the payment. The seller subsequently confirmed receiving the money October 10, almost two weeks after the original withdrawal request.

Other sellers have reported similar discrepancies, with transfers marked completed by Poshmark even though the money had not reached their bank accounts.

The October 10 communication also revealed a problem with Poshmark's current payment process that could cause further delays for sellers who use savings accounts.

Our current process treats all bank accounts as checking accounts. As a result, some redemptions sent to a savings account may be rejected by the Seller's bank, or the bank may require an update to the account information before accepting the deposit.

Poshmark says it can take up to five business days for a rejection to be reported back to the company, at which point the failed redemption will be canceled and the money returned to the seller's Poshmark wallet. Sellers would then need to submit another withdrawal request, with Poshmark suggesting they use a checking account instead to avoid further problems.

The company has not explained whether the savings account problem was caused by the banking transition or when it expects to fix it.

Poshmark's public status page continues to show degraded performance for US seller redemptions as of October 14, almost two weeks after the original incident notice, with no additional public updates explaining the banking transition or confirming when all affected payments will be completed.

The company has not disclosed how many sellers were affected, the total value of delayed payments, or when the banking transition took place.

Have your Poshmark payments been delayed, and if so, have you received your money yet? Let us know in the comments below!