U.S. banks hit by deposit delays

Nov 4, 2023, 3:20 PM

A customer uses an ATM outside of a Bank of America branch. The bank alerted customers on Friday th...

A customer uses an ATM outside of a Bank of America branch. The bank alerted customers on Friday that their deposits may be delayed due to a problem impacting multiple banks. (Patrick T. Fallon, AFP/Getty Images)

(Patrick T. Fallon, AFP/Getty Images)

(CNN) — Multiple U.S. banks were hit by deposit delays on Friday caused by an error at a payment processing network, according to the Federal Reserve.

The Clearing House, which operates the Automated Clearing House system, which allows banks to send electronic payments to each other, experienced a processing error with a batch of bank transactions. Banks send everything from direct deposit paychecks to customer bill payments for mortgages and utility bills through the ACH system.

The Clearing House told CNN on Saturday the issue “impacted less than 1% of the daily ACH volume in the United States” and it was “working with the financial institutions who have customers that have been impacted.”

“All other ACH transactions are processing as expected,” the company said.

An industry source had told CNN the problem did not appear to be a bank-specific issue.

Greg MacSweeney, a spokesperson for The Clearing House, said Friday 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.

A “processing issue” appears to be the problem

There has been no update on when the problem will be resolved.

The Federal Reserve alerted banks Friday afternoon the problem was caused by a “processing issue” at ACH. The Fed had said an “error” in a batch of payments delayed the processing of payments.

Customers at Bank of America, Chase, US Bank, Truist and Wells Fargo reported issues on Friday morning, according to Downdetector. 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?” wrote one user on X, formerly known as Twitter.

Some deposits could be delayed

In a message to customers, Bank of America said “some deposits may be temporarily 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.”

Banks stressed 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 many banks, it appeared other banking systems were functioning normally.

The ACH is operated by the Federal Reserve Banks and the Electronic Payment Network.

The ACH system processes about 74 million transactions on a daily basis, totaling nearly $155 billion, Fed data shows. In all of 2022, there were nearly $38.7 trillion in ACH transactions.

KSL 5 TV Live

National News

Community members in Denver's Central Park neighborhood have a lot of questions after discovering a...

Karen Morfitt, KCNC

Registered sex offender found operating ice cream truck in Denver

Community members in Denver's Central Park neighborhood have a lot of questions after discovering a registered sex offender was operating the neighborhood ice cream truck.

17 minutes ago

Tuesday February 9, 2006. Photo by Scott G. Winterton / Deseret Morning News.The Ten Commandments m...

Sara Cline, Associated Press

New Louisiana law requires that The Ten Commandments must be displayed classrooms

Louisiana has become the first state to require that the Ten Commandments be displayed in every public school classroom.

30 minutes ago

Tropical Storm Alberto has formed in the southwestern Gulf of Mexico, the first named storm of what...

Jaime stengle and Mariana Martinez Barba

Tropical Storm Alberto forms in southwest Gulf, 1st named storm of the hurricane season

Tropical Storm Alberto has formed in the southwestern Gulf of Mexico, the first named storm of what is forecast to be a busy hurricane season.

3 hours ago

An air tanker soars through a large plume of smoke over and around wildfire-affected areas in the v...

MORGAN LEE Associated Press

At least 1 dead in New Mexico wildfire that forced thousands to flee, governor’s office says

Thousands of southern New Mexico residents fled a mountainous village as a wind-whipped wildfire tore through homes and other buildings.

5 hours ago

SEOUL, SOUTH KOREA - JUNE 19: People watch a television broadcast reporting a meeting between North...

Kim Tong-Hyung

Russia and North Korea sign partnership deal that appears to be the strongest since the Cold War

Russian President Vladimir Putin and North Korean leader Kim Jong Un have signed a new partnership that includes a vow of mutual aid if either country faces “aggression.”

5 hours ago

FILE: Members of Reedy Chapel African Methodist Episcopal Church march to celebrate Juneteenth on J...

Terry Tang

The beginner’s guide to celebrating Juneteenth

Many Americans are celebrating Juneteenth, marking the day in 1865 when the last enslaved people in the U.S. learned they were free.

6 hours ago

Sponsored Articles

Photo courtesy of Artists of Ballet West...

Ballet West

The rising demand for ballet tickets: why they’re harder to get

Ballet West’s box office is experiencing demand they’ve never seen before, leaving many interested patrons unable to secure tickets they want.

Electrician repairing ceiling fan with lamps indoors...

Lighting Design

Stay cool this summer with ceiling fans

When used correctly, ceiling fans help circulate cool and warm air. They can also help you save on utilities.

Side view at diverse group of children sitting in row at school classroom and using laptops...

PC Laptops

5 internet safety tips for kids

Read these tips about internet safety for kids so that your children can use this tool for learning and discovery in positive ways.

Women hold card for scanning key card to access Photocopier Security system concept...

Les Olson

Why printer security should be top of mind for your business

Connected printers have vulnerable endpoints that are an easy target for cyber thieves. Protect your business with these tips.

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light up your home with these top lighting trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for hassle-free computer repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

U.S. banks hit by deposit delays