Bank of America warns of banking industry deposit delays
New York (CNN) — Bank of America alerted customers on Friday that their deposits may be delayed due to a problem impacting multiple banks.
Customers at Bank of America, Chase, US Bank, Truist and Wells Fargo have complained of issues on Friday morning, according to Downdetector.
A Chase spokesperson confirmed to CNN that some direct deposits haven’t updated.
“We know some direct deposits haven’t updated because a payroll company has not sent them to us yet,” the spokesperson said. “We will post them as soon as we can but we don’t know the timing yet.”
An industry source tells CNN that the issue appears to be related to the Automated Clearing House (ACH), which is a network for processing transactions. The source said 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.