Simultaneous Banking Outages: A Dire Warning For Your Financial Future

Update 2:05pm: Adds more details on the cause of deposit delay.

Bank of America (NYSE:BAC) warned its customers on Friday that their deposits may be delayed due to an issue impacting multiple banks.

Customers at Bank of America (BAC), JPMorgan Chase (JPM), US Bancorp (USB), Truist (TFC), and Wells Fargo (WFC) complained of problems on Friday, according to a CNN report, which cited the Downdetector site.

The Federal Reserve told banks Friday afternoon in a memo that the issue was caused by a "processing issue" at the private sector operator of the Automated Clearing House.

"The Clearing House (OTCPK:TCH) has experienced an ACH processing issue which impacts less than 1% of the daily ACH volume in the United States," Greg MacSweeney, VP & Head of Communications at The Clearing House said in a statement emailed to Seeking Alpha. "TCH is working with the financial institutions who have customers that have been impacted."

A spokesperson for The Clearing House also told CNN the issue was caused by a "manual error" and not connected to any kind of cybersecurity hack.

A Chase spokesperson confirmed to CNN that some direct deposits haven’t updated.

“We know some direct deposits haven’t updated because a payroll company has not sent them to us yet,” the spokesperson told CNN. “We will post them as soon as we can but we don’t know the timing yet.”

Bank of America said “some deposits may be temporarily delayed," CNN said, citing the message the customers received on Friday.

“Your accounts remain secure, and your balance will be updated as soon as the deposit is received,” the Bank of America message said. “You do not need to take any action.”

Bank of America (BAC) didn't immediately respond to a Seeking Alpha email request for comment.

Originally published by: Joshua Fineman on Seeking Alpha