Treasury Begins Processing Latest EIP Payments

Archived Industry News:Treasury Begins Processing Latest EIP Payments

Treasury Begins Processing Latest EIP Payments

The Bureau of the Fiscal Service, on behalf of the U.S. Treasury Department, released approximately 140 million economic impact payments on Wednesday via ACH to eligible Americans.

In addition, they began printing more than 30 million checks, the first of which were mailed Wednesday by the U.S. Postal Service and will continue daily through January. Debit card distribution will begin Jan. 4, 2021. While the Treasury has indicated it will honor the payment of EIPs prior to these dates, each bank must make their own decision related to when these funds will be made available based on risk and funding settlement date.

While the eligibility rules have changed slightly, it is the responsibility of the IRS to screen for EIP eligibility; it is NOT the bank's responsibility. The IRS issued a news release on Tuesday addressing EIP eligibility, payment issues and other matters. IBA member banks are encouraged to share this IRS release with consumers seeking information on EIPs.

To assist member banks in the handling of EIPs, the IBA has updated the Stimulus Payments FAQs on the IBA website to address operational questions and to inform members of key changes related to the second round of EIPs. Bankers are urged to review the IRS FAQs related to EIPs at the Economic Impact Payment Information Center as more information becomes available.

Read the Treasury Statement and the IBA’s Dec. 22 Compliance Clip.