Why did Bank of America have a problem with ACH payments?

The Federal Reserve alerted banks Friday afternoon the problem was caused by a “processing issue” at ACH. The Fed had said an “error” in a batch of payments delayed the processing of payments. Customers at Bank of America, Chase, US Bank, Truist and Wells Fargo reported issues on Friday morning, according to Downdetector.

Is there a 'processing issue' at ACH?

The Federal Reserve alerted banks Friday afternoon there was a “processing issue” at ACH, the system that allows banks to send electronic payments to each other. Banks use that system to send everything from direct deposit paychecks and Social Security checks to customer bill payments for mortgages and utilities.

Are banks affecting ACH payments?

Banks send everything from direct deposit paychecks to customer bill payments for mortgages and utility bills through the ACH system . The Clearing House told CNN on Saturday the issue “impacted less than 1% of the daily ACH volume in the United States” and it was “working with the financial institutions who have customers that have been impacted.”