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A glitch with a banking processing system that delayed deposits for many U.S. customers on Friday continued through the weekend and into Monday.
Banks across the country had alerted customers about the issue associated with the Automated Clearing House (ACH), a national processor of transactions, following an alert from The Federal Reserve.
Truist and Wells Fargo made statements to customers about deposits being delayed, that they were working to fix it and giving refunds for any associated fees. As of Monday afternoon, Bank of America’s notice is still up for account holders.
“Your accounts remain secure, and your balance will be updated as soon as the deposit is received,” the Charlotte-based bank told customers. “You do not need to take any action.”
Customers continued to vent on social media platforms such as X, formerly known as Twitter, about about deposits being delayed on Monday after their money was expected on Friday.
”Yo (Bank of America) are u gonna pay my bills this month since you’re holding my (and millions of other people) paycheck hostage?,” One person wrote on X, formerly known as Twitter, “like what’s the plan babe what are we doing.”
“(Bank of America) come on its been three days and still nothing ? I want my money !!! I got bills to pay,” another user on X poster said.
Spokespeople from Bank of America, Truist and Wells Fargo declined to provide comments Monday to The Charlotte Observer.
Here’s what else we know so far.
What caused the banking deposit problems?
The Clearing House, which operates the Electronic Payments Network, had a corrupted file which impacted less than 1% of U.S. daily filings through the ACH system. A notice about the glitch was still up on the company’s website, as of Monday.
“TCH is working with the financial institutions who have customers that have been impacted,” the company said.
Spokesman Greg MacSweeney said it’s a rare situation for ACH, which processes billions of transactions a day.
It started on Thursday because of a processing error. MacSweeney told The Charlotte Observer in an email statement on Monday that some ACH payment instructions were sent to financial institutions with account numbers and names of customers hidden to protect information. Since this data is needed to process payments and post them to customer accounts, a lot of ACH payments were delayed.
The error impacted many banks and credit unions. “Some had problems receiving payments, and others saw ‘returns’ from payments that they were not able to send,” he said.
Is the deposit problem fixed?
The Clearing House said many of the delayed payments have already been posted. MacSweeney said the company is working with financial institutions with impacted customers and the Federal Reserve to resolve the issue as quickly as possible.
An exact time was not provided.
Will customers lose money?
If customers have not already received their deposits, they should receive it soon or contact their financial institution, The Clearing House said. So customers won’t lose any money, despite certain deposits being delayed.
What happens next?
MacSweeney said the Thursday error was an unfortunate, isolated issue, and that immediate steps were taken to prevent it from happening again. “The ACH network continues to operate normally, processing tens of millions of electronic payments each day,” he said.
This story was originally published November 6, 2023, 5:24 PM.
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