Error in Fed’s payment system prevents bank customers from paying

Some of the largest U.S. banks were unable to support customers with deposits after one of the Federal Reserve’s payment systems went offline on November 3.

U.S. Federal Reserve (Fed) said the error was caused by a “processing issue” with the Automated Clearing House (ACH), a payments processing network widely used by banks and employers to deposit wages into employee bank accounts.

ACH is operated by the Federal Reserve Bank and electronic payment networks.

Banks insisted that customer accounts were “safe” and the Fed announced that all its services would be back online at 4:44pm UTC.

However, customers still complain about this challenge. X User Georgiaree Godrey said she has not received payment yet and is therefore unable to pay her rent.

Hello. Due to issues affecting multiple financial institutions, some deposits from March 11 may be temporarily delayed. Your account remains secure and your balance will be updated as soon as your deposit is received. ^Adrian

— Bank of America Help (@BofA_Help) November 3, 2023

Another X user “Des Imoto” also said that if funds are lost, security cannot be guaranteed and suggested Bitcoin as a solution to a current problem.

“This is the opposite of security due to lack of funds. #Bitcoin solves this problem.”

User X “LashishLizard” also asked Wells Fargo if it would pay the late fees imposed on them.

“So are you going to pay everyone late fees, court fees, and all the other costs associated with this BS? Because the credit companies, billing companies, and landlords don’t want to hear that you don’t have it.”

Hello, thank you for contacting us. We want to know how we can help. Please send us your full name/postcode/phone number and we will be happy to contact you. ^Adrian

— Bank of America Help (@BofA_Help) November 3, 2023

A CNBC survey in September found that 61% of Americans were living paycheck to paycheck, up from 58% in March.

Reports of outages from Bank of America began to increase around 11 a.m. UTC on November 3.

Bank of America reports peaked at 313 reports in a 15-minute period at 4pm UTC, according to Down Detector data.

Chase and Wells Fargo hit similar highs of 279 and 137, respectively, during the same time frame.

The Federal Reserve has launched Fed now In July, banks and money transfer services were allowed to make payments instantly without relying on ACH.

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