New York (CNN) — Multiple US banks have been hit by deposit delays on Friday caused by an error at a payment processing network, according to the Federal Reserve.
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 direct deposits haven’t updated.
Customers at Bank of America, Chase, US Bank, Truist and Wells Fargo have complained of issues on Friday morning, according to Downdetector.
The Federal Reserve told banks 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 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 single ACH file.
“TCH is working with impacted financial institutions on the matter,” TCH spokesperson Greg MacSweeney said in a statement.
There was no update on when the problem will be resolved.
“We know some direct deposits haven’t updated because a payroll company has not sent them to us yet,” a Chase spokesperson told CNN. “We will post them as soon as we can but we don’t know the timing yet.”
An industry source told CNN the problem does not appear to be a bank-specific issue.
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.”
Neither the Federal Reserve nor the US Treasury Department were immediately available to comment.
None of the banks provided a comment.
The ACH system is at the foundation of the American banking system, enabling banks to send electronic credit and debit payments. Businesses use the ACH system to directly deposit paychecks of their employees and customers use it to directly pay mortgages and utility bills.
The ACH is operated by the Federal Reserve Banks and the Electronic Payment Network.
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