Fed payment glitch delays American payments

Outage in Federal Reserve’s Payment System

On November 3, a glitch in one of the Federal Reserve’s payment systems caused disruptions in customer deposits for some of the largest banks in the United States. The incident was attributed to a “processing issue” in the Automated Clearing House (ACH), a widely used payment processing network utilized by banks and employers for depositing wages into employee bank accounts.

The fact this country lowkey requires you to have a bank account

Yet the banks seems to always have issues

Was supposed to pay rent today but apparently deposits aren’t processing so I didn’t get paid

And now will have a late fee because of this @WellsFargo @BankofAmerica
— Big GG (@BigGodisha) November 3, 2023

Operated by the Federal Reserve

The ACH network is jointly operated by the Federal Reserve Banks and the Electronic Payment Network, making it a crucial component of the U.S. financial infrastructure.

Hi, we appreciate you reaching out to us. We would like to see how we can help. Please send us your full name/ZIP/phone # and we would be happy to follow up with you. ^adrian
— Bank of America Help (@BofA_Help) November 3, 2023

Assurances of Security and Service Restoration

Banks have emphasized that customer accounts remain secure, and the Federal Reserve has confirmed that all services were fully restored by 4:44 pm UTC. However, some customers are still reporting difficulties, with some unable to receive their paychecks. Georgiaree Godrey, one such affected individual, expressed her frustration as the delay in payment hindered her ability to pay rent.

Financial Strain on Americans

A CNBC survey from September revealed that 61% of Americans are living paycheck to paycheck, marking an increase from 58% in March. This highlights the financial strain many individuals face, making timely access to funds crucial.

Timeline of Outage Reports

Reports of outages began around 11:00 am UTC on November 3. Bank of America experienced a peak of 313 reports within a 15-minute interval at 4:00 pm UTC, according to Downdetector. Similarly, Chase and Wells Fargo faced similar peaks of 279 and 137 reports, respectively, during the same timeframe.

Image Source: cointelegraph.com

FedNow Offers an Alternative

The Federal Reserve introduced FedNow in July, providing banks and money transmitter services with the capability to conduct instant payments without relying on the ACH network. This innovation aims to enhance the efficiency and reliability of payment processing.

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