Several US banks were affected by delays in deposits. The Federal Reserve announced that the failure was caused by an error in a payment processing network.
Users of Chase, US Bank, Truist, Wells Fargo and Bank of America began reporting failures on Downdetector starting at 8:00 a.m. ET, the number of which has decreased, but continue.
Why is there a delay in deposits in the USA?
The US central bank told banks that the problem was caused by a “processing issue” at the private sector operator of Automated Clearing House (ACH), a national network to process transactions.
“This error was contained in a single interoperator file that was distributed by EPN to its participants during the November 2 6:00 p.m. processing window,” added the Fed.
“EPN has instructed its participants to initiate returns, and originating depository financial institutions (ODFIs) will need to be prepared to initiate new items to complete the payments,” added the central bank.
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According to the Federal Reserve, the Automated Clearing House (ACH) system is “a nationwide network through which depository institutions send each other batches of electronic credit and debit transfers.”
Although the ACH network was originally used to process mostly recurring payments, today it is widely used to process transfers, such as payments made over the phone and the Internet.
Bank of America alerts its clients
The banks alerted their customers that their deposits may be delayed due to this problem. In a message, Bank of America said that “some deposits may be temporarily delayed.”
The message said Friday deposits 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. You do not need to take any action,” the bank added.
