US banks are harmed by deposit delays
Several U.S. banks experienced deposit delays on Friday due to an error in their payment processing network, according to the Federal Reserve.
Bank of America has alerted customers that their deposits may be delayed due to an issue affecting several banks. A Chase spokesperson confirmed to CNN that some direct deposits had not been updated.
Customers at Bank of America, Chase, US Bank, Truist and Wells Fargo complained of problems on Friday morning, according to the Times of India. Downdetector.
Federal Reserve Alert banks On Friday afternoon, the issue was caused by a “processing issue” at the private sector operator of the Automated Clearing House (ACH), a national transaction processing network.
The Fed said an “error” in a batch of payments led to a delay in processing the payments.
Clearing House, the private operator of ACH, confirmed to CNN that it “experienced a processing issue” with a range of banking transactions.
Greg McSweeney, a spokesman for The Clearing House, said the issue was caused by a “manual error” and was not related to a cybersecurity issue.
“TCH is working with affected financial institutions on this matter,” McSweeney said in a statement.
There has been no update on when the issue will be resolved.
“We know that some direct deposits have not been updated because the payroll company has not yet sent them to us,” a Chase spokesperson told CNN. “We will publish it as soon as possible but we don’t know the timing yet.”
An industry source told CNN that the issue did not appear to be a problem specific to the bank.
In a letter to customers on Friday, Bank of America said “some deposits may be temporarily delayed.”
Deposits from Friday may be delayed due to “an issue affecting multiple financial institutions,” the letter said.
“Your accounts remain secure, and your balance will be updated once you receive your deposit,” the Bank of America message said. “You don’t need to take any action.”
It was not immediately possible to contact the Federal Reserve Bank or the US Treasury Department for comment.
None of the banks provided a comment.
the H system It is the foundation of the American banking system, enabling banks to send electronic credit and debit payments. Businesses use ACH to directly deposit their employees’ paychecks and customers use it to pay mortgages and utility bills directly.
ACH is operated by the Federal Reserve Banks and the Electronic Payment Network.
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