December 4, 2023

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Failures in the federal payment system prevent payment from bank customers

Failures in the federal payment system prevent payment from bank customers

Some of the largest banks in the United States were unable to facilitate customer deposits after one of the Federal Reserve’s payment systems went down on November 3.

Federal Reserve He said The error resulted from a “processing issue” in the Automated Clearing House, a payment processing network widely used by banks and employers to deposit salaries into employees’ bank accounts.

The Automated Clearing House is operated by the Federal Reserve Banks and the Electronic Payments Network.

Banks confirmed that customer accounts “remain secure” and the Federal Reserve says all services resumed at 4:44 PM UTC.

However, customers still complain about this situation. A user named Georgiaree Godfrey says she has not yet received her paycheck and, as a result, cannot pay her rent.

Another user

“It’s the opposite of security since funds are missing. #Bitcoin fixes this.”

X user “LashishLizard” too Requested Wells Fargo whether they will pay any late fees charged to them.

“So are you going to pay everyone’s late fees and court fees and everything else associated with this program? Because the credit companies and the billing companies and the landlords don’t want to hear that you don’t have it.

a reconnaissance A September CNBC poll found that 61% of Americans are living paycheck to paycheck, up from 58% in March.

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Reports of outages at US banks began increasing around 11:00 AM UTC on November 3.

Bank of America reports peaked with 313 outages during a 15-minute period at 4:00 PM UTC, according to Downdetector. Chase and Wells Fargo reached similar peaks of 279 and 137 in roughly the same period.

Bank of America has fallen in the past 24 hours. Source: Downdetector.

RThe Federal Reserve launched FedNow in July, which allows banks and money transfer services to make payments instantly, without having to rely on ACH.

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