Direct deposits were delayed by Federal Reserve glitch
Direct deposits and other financial transactions were delayed Thursday by a glitch at the Federal Reserve that has since been resolved.
Banks were alerted on Thursday morning to a “disruption” in the Fed’s automated clearing house (ACH) network that caused settlement delays. Banks use the ACH network to zip money to each other for online bill payments and direct deposits.
As of 10:31 am ET, the Fed reported that all systems were operating normally and technical staff had “resolved the issue.” The central bank said payment files for the business day of December 18 have been completed, although some transaction reports will be delayed.
“We apologize for the inconvenience and disruption this has caused your operations,” the Fed said in the alert.
It’s not clear what caused the problems or how many banks were impacted. Federal Reserve technical staff continue to investigate the root cause of the issue, the Fed said in a statement.
The glitch caused some bank customers to complain on social media about direct deposit issues.
JPMorgan Chase, the largest US bank, told CNN Business it is seeing only “minimal impact for customers at this time.”
Another major bank’s direct deposits and other financial transactions were delayed because of the glitch, a person familiar with the matter at the bank told CNN Business.
VyStar Credit Union, a Florida-based financial service company, warned customers of delays.
“The Federal Reserve is encountering issues, which is delaying ACH files,” VyStar said in a tweet. “This issue is affecting all financial institutions. We will process the file as soon as we receive it.”
Representatives from Wells Fargo, and Bank of America did not immediately respond to requests for comment.