Multiple US banks encountered deposit delays on Friday as a result of an error at a payment processing network, as disclosed by the Federal Reserve.

According to the Federal Reserve, an error occurred within the Automated Clearing House (ACH) system operated by The Clearing House, which facilitates electronic payments between banks. This processing error affected a batch of bank transactions, including direct deposit paychecks and customer bill payments for mortgages and utility bills.

The Clearing House confirmed that less than 1% of the daily ACH volume in the United States was impacted by this issue. The organization is actively cooperating with financial institutions affected by the error to resolve the matter. However, it emphasized that all other ACH transactions are continuing as usual.

The problem was attributed to a manual error and was determined to be unrelated to cybersecurity concerns, as stated by Greg MacSweeney, a spokesperson for The Clearing House. The exact timeline for resolving the problem has not been provided at this time.

The Federal Reserve notified banks about the processing issue at ACH on Friday afternoon, attributing the delay to an "error" in a batch of payments. Several major banks, including Bank of America, Chase, US Bank, Truist, and Wells Fargo, reported issues related to the deposit delays. Customers voiced their frustrations on social media platforms, questioning the status of their funds and expressing concern about covering their pending bills.

Bank of America acknowledged the issue in a message to its customers, assuring them that their accounts remained secure and that balances would be updated promptly upon receipt of the delayed deposits. Similar statements were made by other affected banks, who also reassured customers that the deposit delays were caused by human error and not a malicious attack. It is worth noting that while the delays were widespread, other banking systems were reportedly functioning normally.

The ACH system, overseen by the Federal Reserve Banks and the Electronic Payment Network, processes a substantial number of transactions daily. Fed data reveals that approximately 74 million transactions, totaling nearly $155 billion, are handled by the ACH system daily. In 2022 alone, ACH transactions amounted to nearly $38.7 trillion.

As of now, further updates regarding the resolution of the deposit delay issue have not been provided. However, customers are advised to remain patient, as banks work diligently to rectify the error and ensure the timely processing of their deposits.