Bank of America warns of deposit delays in banking industry

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A customer uses an ATM outside a Bank of America branch

New York

According to the Federal Reserve, several US banks were hit by a glitch in their payment processing network that caused deposit delays on Friday.

A clearing house, which operates an automated clearing house system that allows banks to send electronic payments to each other, encountered a processing error in a batch of bank transactions. Banks send everything from direct deposit checks to customer bill payments for mortgages and utility bills. ACH system.

The clearinghouse told CNN on Saturday that “less than 1% of daily ACH volume in the US was affected” and that it was “working with financial institutions that have affected customers”.

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

An industry source told CNN that the problem does not appear to be a banking problem.

Greg McSweeney, a spokesman for The Clearing House, said Friday that the problem was caused by a “manual error” and was not linked to a cybersecurity issue.

“TCH is working with the affected financial institutions on this matter,” MacSweeney said in a statement.

There is no word on when the issue will be resolved.

Federal Reserve Banks were warned The problem was caused by a “processing issue” with ACH on Friday afternoon. The central bank said an “error” in payments delayed the payment.

Customers at Bank of America, Chase, US Bank, Truist and Wells Fargo reported problems Friday morning. Down detector. Some frustrated bank customers took to social media to complain about deposit delays.

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“@BankofAmerica where’s my money, will you pay my bills due today?” wrote A user in X, Formerly known as Twitter.

In a message to customers, Bank of America said “some deposits may be temporarily delayed due to an issue affecting many financial institutions.”

“Your accounts are secure and your balance will be updated as soon as the deposit is received,” the Bank of America message read. “You don’t have to take any action.”

Banks insisted that customer deposits were safe and that the error was introduced by human error and not by a malicious attack. While the rare deposit delay affected deposits in many banks, other banking systems appeared to be functioning normally.

ACH is powered by the Federal Reserve Banks and Electronic Payments Network.

The ACH system processes approximately 74 million transactions on a daily basis, totaling nearly $155 billion. Fed data shows. By 2022, there will be nearly $38.7 trillion in ACH transactions.

This story has been updated with additional information

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