On Wednesday, Americans will finally see some green when the third stimulus check will arrive in their direct deposit accounts. So, the reason won’t just be that St. Patrick’s Day falls on the same day.
The 17th of March will be ticked as ‘payday’ since several stimulus checks of 1400 dollars will be deposited. But many other Americans have already seen the greenery in their bank accounts. Last Thursday, President Biden signed the American Rescue Plan. And this was enough to give a push or ‘thumbs up for the checks to start being deposited.
The IRS On Distributing The Stimulus Checks
On Friday, a day after the President’s signature, the IRS said that the process of sending the stimulus checks had already begun. In a statement, they clarified that some recipients may still see these deposits as pending or even provisional payments. But that is due to the ‘payday’ of 17th March, when the check will be processed through.
Chime is a fintech startup in banking. And its decision to make the funds available early had many others perked up. People began to ask why traditional banks were not doing the same. But it seems all of this has more to do with something called the ACH network. And it is the reason behind why payments dropped in early and why some are delayed.
ACH is nothing but a system of payment. It enables payments to United States bank accounts and direct deposits as well as credit unions. The system is overseen by Nacha or National Automated Clearing House Association. They have stated that every payment or deposit has a date of correspondence. The IRS set that date as 17th March. Which is when the first wave of the stimulus checks will flush out.
So, on 17th March, first, the government will send the checks to credit unions and banks nationwide. And then, these institutions will make these payments publicly available by a given deadline. And how fast it may reach the people depends on the timeline of the government. The Consumers Bankers Association mentioned that the IRS (sender) is the one who decides when the money will be available.
The IRS said that 160 million Americans would get their 1400 dollar stimulus checks by direct deposits.