Ensuring Timely Payments: How Paystand Users Still Got Paid During a Banking Outage
Nov 8, 2023 by Zazil Martinez
Last Friday, most banks in the United States were affected by a failure that left thousands of people unpaid nationwide. Bank of America, Wells Fargo, and Chase, among others, reported delays in more than 850,000 deposits, which is alarming for individuals and businesses that depend on timely payments. According to The Federal Reserve, this was due to a "processing issue.” An error at The Clearing House, a U.S.-based limited liability company owned by the largest commercial banks, disrupted ACH-processed transactions. This ranged from direct deposits to mortgages and utility bill payments. According to NACHA, The ACH Network processed an average of $330 billion daily in September. Many customers have since complained to their banks for not communicating clearly about the delayed deposits.
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