The stimulus checks worth $1,400 are now in the bank accounts of 90 million Americans.
Treasury Department, IRS, and Bureau of Fiscal Service announced on Wednesday that the first wave of payments totaled more than $242 billion. The next batches of payments will follow.
The first deployment of checks were deposited on Wednesday, marking the official start of pay week.
Account holders were able to access their money as early as 9 a.m. local time, CNBC reported.
About 150,000 paper checks worth $442 million have also been mailed.
This first tranche is for those who have reported direct deposit information on their 2019 or 2020 tax returns or who have registered for the IRS non-filer tool in the past.
According to the IRS, direct deposit will be used for the majority of stimulus payments, according to the IRS.
It is possible that the money will not arrive immediately.
What Caused Some People to Receive $1,400 Payments Earlier
Earlier, President Joe Biden signed the American Rescue Plan into law, giving the government the green light to start sending checks.
The money crossed some Americans’ accounts before Wednesday’s official payment date.
According to the IRS, it will begin sending the funds out on Friday.
“Some Americans may see the direct deposit payments as pending or as provisional payments in their accounts before the official payment date of March 17,” according to the IRS statement.
Many organizations, such as Chime, a fintech bank, make funds available to their customers early.
This led some people to wonder why other traditional banks had not followed suit.
The ACH Network played a key role in explaining why some payments were made early but others didn’t drop until March 17, due in part to how it operates.
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In the United States, the ACH Network enables direct deposits and payments to account at banks and credit unions throughout the country.
There is no mystery where the money is from the time the first payment file was transmitted on Friday, March 12 to when all recipients will have access to the money on Wednesday — it is still with the government.
Nacha
organization that oversees the ACH Network
According to the National Automated Clearing House Association, or Nacha, the organization that oversees the ACH Network, there is a date associated with each ACH payment – or direct deposit – instruction.
The 17th of March was marked by two events. From the federal government, the funds moved to banks and credit unions.
Next, banks and credit unions set a deadline by which people could withdraw their funds (generally by 9 a.m. local time).
The payment made ahead of time; this mean the financial institution advanced the money based on instruction on who should get paid and how much.
“There is no mystery where the money is from the time the first payment file was transmitted on Friday, March 12 to when all recipients will have access to the money on Wednesday — it is still with the government,” the organization stated.
Consumer Bankers Association data shows that these types of transactions generally involve a waiting period of at least two days before accounts are funded.
The government can correct any errors that may occur. Institutions are also given the opportunity to troubleshoot for possible fraud.
Therefore, financial institutions advancing funds earlier do so on their own risk.
ACH settlements will also occur for subsequent payments each Wednesday following issuance, per the Treasury Department.
Payments that do not go through will be reissued by the government as paper checks. Debit cards will also be used for other mailed payments.