US banks hit by deposit delays
Nov 3, 2023, 5:57 PM
(AP Photo/Mark Lennihan, File)
(CNN) —Multiple US banks were hit by deposit delays on Friday caused by an error at a payment processing network, according to the Federal Reserve.
Banks stressed that customer deposits remain safe, and the bug was introduced by human error and not a malicious attack. Although the rare deposit delay affected deposits at a large number of banks, it appeared that other banking systems were functioning normally.
Bank of America alerted customers that their deposits may be delayed due to a problem impacting multiple banks. A Chase spokesperson confirmed to CNN that some of its customers’ direct deposits haven’t updated.
Customers at Bank of America, Chase, US Bank, Truist and Wells Fargo complained of issues on Friday morning, according to Downdetector. Some users on X, formerly known as Twitter, complained they didn’t get paid on Friday.
The Federal Reserve alerted banks Friday afternoon the problem was caused by a “processing issue” at the private sector operator of the Automated Clearing House (ACH), a national network for processing transactions.
The ACH system allows banks to send electronic payments to each other. Everything from direct deposit paychecks to customer bill payments for mortgages and utility bills flow through this system.
The Fed said an “error” in a batch of payments delayed the processing of payments.
The Clearing House, the private sector operator of ACH, confirmed to CNN that it “experienced a processing issue” with a batch of bank transactions. Greg MacSweeney, a spokesperson for The Clearing House, said the problem was caused by a “manual error” and is not linked to a cybersecurity issue.
“TCH is working with impacted financial institutions on the matter,” MacSweeney said in a statement.
There was no update on when the problem will be resolved.
Some frustrated bank customers complained on social media about the deposit delays.
“@BankofAmerica where is my money and will you be covering my bills that are due today?” one user on X said.
In a message to customers on Friday, Bank of America said “some deposits may be temporarily delayed.”
The message said the deposits from Friday may be delayed due to an “issue impacting multiple financial institutions.”
“Your accounts remain secure, and your balance will be updated as soon as the deposit is received,” the Bank of America message read. “You do not need to take any action.”
“A system issue affected ACH debits and credits sent to us, as well as to other banks,” Chase said in a statement to CNN. “The originators of these deposits are working to resend the payment files and we will post them as soon as we can.”
An industry source told CNN the problem does not appear to be a bank-specific issue.
US Bank said in a statement it is aware of an “industry-wide technical issue” impacting some deposits.
“Customer accounts remain secure, and balances will be updated when deposits are received,” US Bank said. “We do not have an estimate on timing at this point. Customers do not need to take any action.”
In a post on X, Wells Fargo told customers it is “aware of the deposit issue” and “working on a resolution.”
Neither the Federal Reserve nor the US Treasury Department were immediately available to comment.
The ACH is operated by the Federal Reserve Banks and the Electronic Payment Network.
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