Multiple U.S. banks experienced deposit delays on Friday due to an error within a payment processing network, as reported by the Federal Reserve. The banks emphasized that customer deposits remained secure, and the issue stemmed from human error, rather than a malicious attack. Although this rare deposit delay affected numerous banks, it appeared that other banking systems were functioning as usual.
Bank of America informed its customers that their deposits might be delayed due to a problem affecting several banks. A spokesperson from Chase confirmed that some of its customers’ direct deposits hadn’t updated.
Customers at Bank of America, Chase, US Bank, Truist, and Wells Fargo reported issues on Friday morning, according to Downdetector. Some individuals on social media platforms like Twitter complained that they hadn’t received their payments on Friday.
The Federal Reserve notified banks on Friday afternoon that the problem originated from a “processing issue” at the private sector operator of the Automated Clearing House (ACH), a national network for transaction processing.
The ACH system is vital for banks to send electronic payments to one another, encompassing a wide range of transactions, from direct deposit paychecks to customer bill payments for mortgages and utility bills. a payment processing
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.