BUSINESS + ECONOMY

US banks hit by deposit delays

Nov 4, 2023, 11:50 AM

New York (CNN) — Multiple US banks were hit by deposit delays on Friday caused by an error at a ...

File - A customer uses an ATM at a Bank of America location in San Francisco, Monday, April 24, 2023. Bank of America is being ordered to pay more than $100 million to customers for double-dipping on some fees imposed on customers, withholding reward bonuses explicitly promised to credit card customers, and misappropriating sensitive personal information to open accounts without customer knowledge or authorization. (Jeff Chiu/Associated Press)

(Jeff Chiu/Associated Press)

New York (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.”

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

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business + Economy

wall street and broad signs shown...

STAN CHOE AP Business Writer

Stock market today: Wall Street falls toward its worst week in months as oil jumps

The nation’s largest bank gave a forecast for a key source of income this year that fell below Wall Street’s estimate.

19 hours ago

A man sits at an office computer - Companies are experimenting with a four day workweek...

CNN

4-day workweeks may be around the corner. A third of America’s companies are exploring them

Nearly one-third of large US companies are exploring new work schedule shifts such as a four-day workweek, according to a survey by KPMG.

20 hours ago

President Joe Biden delivers remarks on student loan debt at Madison College on April 8 in Madison,...

Katie Lobosco, CNN

Biden to forgive $7.4 billion more in student loan debt for 277,000 borrowers

President Joe Biden announced another round of student loan forgiveness helping around 277,000 borrowers.

24 hours ago

The Instagram logo is seen on a cell phone in Boston, USA, Oct. 14, 2022....

KELVIN CHAN AP Business Writer

Instagram begins blurring nudity in messages to protect teens and fight sexual extortion

Instagram says it's deploying new tools to protect young people, including a feature that will automatically blur nudity in direct messages.

1 day ago

International flights could start flying out of the Provo Airport within the next couple of years, ...

Mariah Maynes

American Airlines announces service to Provo Airport

American Airlines announced that it will begin offering nonstop service to and from Provo airport this fall. 

2 days ago

Mortgage rates soar to their highest level in 21 years...

Peter Johnston

Homebuyers pause as mortgage rates jump

Mortgage rates have jumped to their highest level since Thanksgiving. Potential homebuyers are pressing pause on applying for new home loans.

2 days ago

Sponsored Articles

...

Live Nation Concerts

Artists coming to Utah First Credit Union Amphitheatre (formerly USANA Amp) this summer

Summer concerts are more than just entertainment; they’re a celebration of life, love, and connection.

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

US banks hit by deposit delays