Major Banks Hit By Clearinghouse Glitch, Direct Deposits Delayed

A technical hiccup at a major clearinghouse has led to a cascade of direct deposit delays for customers at several leading banks, including JPMorgan Chase & Co JPM, Wells Fargo & Co WFC, Bank of America Corp BAC and Truist Financial Corp TFC.

The glitch, which surfaced Friday, has caused a disruption in the usual flow of payroll deposits, leaving many customers in a lurch as they checked their accounts for expected funds, according to ThinkAdvisor.

Reports of the issue began to emerge, with Downdetector, an outage tracking website, documenting a spike in complaints across various banks. These ranged from incorrect account balances to stalled transactions. According to a spokesperson from JPMorgan Chase, the delay was due to payroll files that had not been processed as anticipated, ThinkAdvisor reports.

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While Wells Fargo directed inquiries to The Clearing House (TCH), the entity responsible for operating the payment networks in question, TCH acknowledged the issue. They pinpointed the problem to a single Automated Clearing House (ACH) file, which had encountered processing difficulties, according to ThinkAdvisor.

TCH's role is critical as it oversees the Electronic Payment Network, one of the two authorized ACH networks in the United States, the other being operated by the Federal Reserve.

The disruption has prompted a flurry of social media posts, with customers voicing their frustrations over the missing funds. The incident underscores the interconnectedness of the banking system and the widespread impact that can ensue from a single point of failure. TCH has stated it is actively working with the affected financial institutions to resolve the matter.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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