Some banks won’t process $1,400 stimulus checks until Wednesday. Why the delay?
Some banks have told customers to expect their stimulus payments starting Wednesday — drawing criticism as other eligible Americans have already started receiving the funds.
The third round of direct payments — up to $1,400 checks for most Americans — was included in the $1.9 trillion American Rescue Plan, which President Joe Biden signed into law Thursday.
White House Press Secretary Jen Psaki had said payments could start rolling out over the weekend, and some people have already reported seeing the checks hit their bank accounts.
But some Americans may have to wait a few days to start seeing the direct deposits.
Wells Fargo and Chase tweeted last week that customers could start seeing payments in their accounts as soon as March 17 — but some customers questioned the timing and criticized the banks for what they called a delay.
“It’s criminal that you’re holding on to the stimulus payments until the 17th,” one user tweeted about Wells Fargo. “There is zero reason to hold onto them.”
“Shouldn’t have to wait until Wednesday to get our stimulus payments,” another tweeted at Chase. “Get your act together! Everyone else is getting theirs already!”
The frustration comes as other banking services, such as Chime and Current, have said they’ve already started processing customers’ payments.
Why March 17?
Both Wells Fargo and Chase responded by pointing to information from the government.
“Wells Fargo will process all of the direct deposits according to the effective date provided by the U.S. Treasury,” the bank tweeted in response to criticism. “If you are eligible to receive a stimulus payment, you can check on the status of your payment using the IRS’s Get My Payment tool.”
Wells Fargo’s website also says it will process direct deposits “according to the effective date” from the U.S. Treasury.
“We know the importance of the stimulus funds to our customers, and we are providing the payments to our customers as soon as possible on the date the funds are available, based on IRS direction,” Jim Seitz, a spokesman for Wells Fargo, said in a statement to Bloomberg. “Wells Fargo is not holding the funds.”
Chase pointed customers to its website for more information, tweeting “we understand how important it is for you to receive your stimulus. Like you, we’re following this closely.”
Its website says payments can be expected starting March 17 and points to the Internal Revenue Service website for more information.
A delay in receiving a stimulus payment doesn’t mean banks are holding onto the funds, according to CNN.
“Some people will see the money in their accounts as early as this weekend as a pending or provisional payment until it is cleared by their financial institution,” a Treasury Department official told reporters during a call last week, CNN reports.
Some other banks outlined similar timelines during the last round of stimulus payments sent out under the $900 billion package passed in December, including Bank of America, which told customers to expect the $600 payments “on the effective date set by the Treasury.”
Although some Americans have already received their stimulus money, the payments will continue being rolled out over the next several weeks.
How will payments arrive — and who is eligible?
The first payments will be sent through direct deposit — and additional payments, including those sent through the mail, will be sent in the coming weeks, according to the IRS. Payments will likely come sooner for those who have already provided the IRS with their bank account information, while those receiving the payments through a pre-paid debit card or paper check will likely have to wait a little longer.
Individuals making under $75,000 and couples making under $150,000 are eligible for the full $1,400 payment, plus $1,400 per child or adult dependent. The payments will phase out after that, capping at individuals making $80,000 and couples making $160,000.
Anyone with a valid social security number, green card or H-1B and H-2A work visa is eligible for the payment.
Eligible American can track their payments using the “Get My Payment” tool from the IRS.
This story was originally published March 15, 2021 at 7:20 AM with the headline "Some banks won’t process $1,400 stimulus checks until Wednesday. Why the delay?."
