Payments

Customers see delay in direct deposits due to ACH error

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November 7, 2023

Customers reported a delay in their direct deposits after an error with the Automated Clearing House on Nov. 3. Some customers still haven't received their paychecks as a result of this error, according to a report by CNN.

The issue was caused by a processing error when some payment instructions were sent to banks with masked customer names and account numbers. Without this data, banks were unable to post the deposits to customers' accounts, according to a report by CBS News.

Due to this issue, some of the payments had to be resent, which further slowed down the process. Banks have emphasized that the funds are secure. The Automated Clearing House said it is working with the Federal Reserve and banks to handle the issue.

"Many of the delayed payments have already posted, and we will continue working with financial institutions to ensure the remaining transactions are processed," Greg MacSweeny, a spokesperson for the Automated Clearing House, said in the report.