Bug in Fed’s payment system prevents bank customers from getting paid

A CNBC survey from September discovered that 61% of Americans are living income to paycheck, up from 58% in March.Related: JPMorgan forecasts minimal drawback for crypto markets: Report Outage reports from the U.S. banks began to rise at about 11am UTC time on Nov. 3. Reports from Bank of America peaked at 313 throughout a 15-minute period at 4:00 pm UTC time, according to Downdetector. Chase and Wells Fargo reached comparable peaks of 279 and 137 around the exact same timeframe.Bank of America interruptions reported in the last 24 hours. Source: Downdetector.The Federal Reserve launched FedNow in July, which allows banks and cash transmitter services to make payments immediately, without requiring to rely on the ACH.Magazine: Unstablecoins: Depegging, bank runs and other dangers loom

Some of the biggest United States banks are not able to assist in consumers deposits after among the Federal Reserves payment systems suffered an outage on Nov. 3. The Federal Reserve said the bug was brought on by a “processing issue” in the Automated Clearing House– a payment processing network commonly utilized by employers and banks to deposit earnings into worker checking account. The ACH is operated by the Federal Reserve Banks and the Electronic Payment Network.Banks worried customer accounts “stay protected” and the Federal Reserve claims all of its services resumed at 4:44 pm UTC time.However, clients are still grumbling about the ordeal. One X user, Georgiaree Godrey states she still hasnt been paid and as a result, can not pay rent.Hello. Some deposits from 11/3 might be temporarily postponed due to a concern affecting multiple banks. Your accounts remain safe and secure, and your balance will be upgraded as soon as the deposit is received. ^ adrian– Bank of America Help (@BofA_Help) November 3, 2023

Another X user, “Des Imoto,” repeated that funds cant be safe and secure if theyre missing and recommended that Bitcoin functions as a fix to the problem at hand.” Its the opposite of protected since the funds are missing out on. #Bitcoin fixes this.” X user “LashishLizard” also asked Wells Fargo whether they would pay for any late charges imposed versus them.” So are you going to pay everybodys late charges, court costs and whatever else related to this BS? Because credit companies, bills, property owners dont desire to hear you do not have it.” Hi, we appreciate you reaching out to us. We would like to see how we can help. Please send us your complete name/ZIP/phone # and we would be delighted to follow up with you. ^ adrian– Bank of America Help (@BofA_Help) November 3, 2023

Source: Downdetector.The Federal Reserve introduced FedNow in July, which permits banks and cash transmitter services to make payments immediately, without requiring to rely on the ACH.Magazine: Unstablecoins: Depegging, bank runs and other dangers loom

Some of the biggest United States banks are not able to assist in customers deposits after one of the Federal Reserves payment systems suffered a blackout on Nov. 3. The Federal Reserve said the bug was triggered by a “processing concern” in the Automated Clearing House– a payment processing network widely used by employers and banks to deposit incomes into employee bank accounts. ^ adrian– Bank of America Help (@BofA_Help) November 3, 2023

Other Questions People Ask

What caused the bug in Fed’s payment system that prevents bank customers from getting paid?

The bug in the Federal Reserve's payment system was attributed to a "processing issue" within the Automated Clearing House (ACH), which is a crucial network for processing payments. This outage began on November 3, leading to significant disruptions for major banks, including Bank of America, Chase, and Wells Fargo. As a result, many customers reported delays in receiving their deposits, causing frustration and financial strain for those relying on timely payments.

How are banks responding to the bug in Fed’s payment system that prevents customers from getting paid?

Banks have assured customers that their accounts remain secure despite the disruptions caused by the bug in the Fed's payment system. They have communicated that deposits affected by the outage would be updated as soon as the issue was resolved. However, many customers are expressing concerns about potential late fees and other financial repercussions due to the delays in receiving their funds.

What should customers do if they are affected by the bug in Fed’s payment system?

If customers are experiencing issues due to the bug in the Fed's payment system, they should first check with their bank for updates on their account status. It is advisable to document any missed payments or late fees incurred during this period. Additionally, customers may want to reach out to their bank's customer service for assistance and inquire about any potential remedies for fees resulting from the delay.

Will customers receive compensation for issues caused by the bug in Fed’s payment system?

As of now, banks have not explicitly stated whether they will compensate customers for issues arising from the bug in the Fed's payment system. Many customers are voicing concerns about late fees and other financial impacts due to delayed payments. It is recommended that affected individuals contact their banks directly to discuss their specific situations and explore possible solutions or compensatory measures.