While some Americans got their stimulus payments over the weekend, tens of millions are set to receive their payments on Wednesday, March 17, due to instructions from the Internal Revenue Service.
"The IRS recently sent an initial wave of tens of millions of economic impact payments via the Automated Clearing House (ACH) system," according to a statement issued by nine banking and credit union industry groups. "The actual funds will be sent to the banks and credit unions on March 17, at which time funds will be made available to customers."
The money should be transferred from the government to the banks' and credit unions' settlement accounts at the Federal Reserve on Wednesday at 8:30 a.m. EDT, according to Nacha, the body that governs the ACH Network that facilitates payment transactions. Americans should see the direct payments in their accounts by 9:00 a.m. local time on Wednesday, per Nacha rules.
The IRS chose the March 17 for the settlements for the stimulus checks to occur. The banks and credit unions are not delaying the deposits.
"While the IRS could have chosen to send the funds via Same Day ACH or provided for an earlier effective date, it chose not to do so," the statement from the banking and credit union industry groups said. "It is up to the sender, in this case the IRS, to decide when it wants the money to be made available and the IRS chose March 17."
'It’s the right thing to do'
Some banks like Green Dot already sent the stimulus payments, advancing the funds to their customers instead of waiting for the government funds to become available before depositing the payments.
"We have the liquidity to advance funds to eligible recipients as soon as orders are confirmed from the IRS… we aren’t waiting for the funds from the IRS to settle before depositing them into customers’ accounts," Dan Henry, CEO of Green Dot, said in a statement on Monday. "This approach comes at a cost, but we believe it’s the right thing to do for our customers.”
Henry noted that Green Dot's core customers are largely "low- to moderate-income Americans, people who desperately need access to these funds."
Around 158.5 million households are expected to receive a payment under the new stimulus deal, according to the White House. This round of stimulus checks is $1,400 per eligible individual plus a $1,400 bonus per dependent.
The current round of stimulus payments, part of a new $1.9 trillion stimulus deal, began distribution at the end of last week through direct deposit. If you have no direct deposit information on file or if the account provided is now closed, the IRS will mail you a check or pre-paid debit card instead. The IRS has yet to announce the schedule for mailing payments.
Read more: Here's what's in Joe Biden's $1.9 trillion 'rescue plan' that could help your wallet
Americans can now check the status of their third stimulus check using the Internal Revenue Service’s online tracking tool ‘Get My Payment.’
If you received no payment and you think you’re eligible or you got the wrong amount, you’ll be able to claim it on your 2021 tax return.
Denitsa is a writer for Yahoo Finance and Cashay, a new personal finance website. Follow her on Twitter @denitsa_tsekova
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