Chase routing number rejected for NY unemployment direct deposit despite accurate information

So I've been trying for over a week now to set up direct deposit for my unemployment benefits through the NYS Department of Labor website and keep hitting a wall. When I try to enter my bank information (it's Chase), I'm getting this frustrating error message saying "This routing number cannot be used. Please use a traditional checking account or check 'cancel direct deposit' and receive a free KeyBank debit card." I triple-checked my routing number (121000497) against my actual check from THOMAS B. ANDERSON and MARY ANDERSON and online banking - it's definitely right! I know for sure this is a regular checking account, not savings or anything special. I've double checked the account number (1234567890) too. The website shows a sample check image that clearly marks where to find the routing number and account number, and I'm 100% following those instructions. The website says: "To register for direct deposit or change your current checking account information, please enter your 9-digit bank routing number and checking account number." And there's a warning that says "Important: Please be sure to enter your checking account information accurately. If you don't enter accurate information, your benefit payments may be delayed for 14 to 21 days." The site also mentions that "Before direct deposit can begin, a test transaction will be sent to your financial institution to verify the routing and account numbers. This test will take approximately 5 days from the time you submit the request for direct deposit." But I keep getting the same error message every time I try: "This routing number cannot be used. Please use a traditional checking account or check 'cancel direct deposit' and receive a free KeyBank debit card." Has anyone else had this problem lately with the NYS Department of Labor website? Do I actually need to just accept the debit card option? I really don't want to wait another 14-21 days for benefits while they mail me a card as the website warns. This is so frustrating! Any help appreciated!

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33 comments

Amara Eze

•3M

After struggling with the same thing I finally found a solution! I used this service called Claimyr (claimyr.com) and it actually worked. You put in your number and they call the unemployment office for you, stay on hold, then call you when a real person picks up. Talking to an agent got my direct deposit issues fixed in one call. Honestly it was the only way I could talk to a live agent and get my money flowing again. Check out their explanation video if you're curious: https://youtu.be/Rdqa1gKtxuE

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Zainab Ahmed

•2M

I work in banking (not for Chase but another major bank). This is happening because NY unemployment's system has outdated routing number databases. Banks occasionally update their routing numbers or have special ones for electronic transfers vs paper checks. Your best bet is to: 1. Call Chase directly and ask for their ACH routing number specifically for direct deposits. It might be different than what's on your check. 2. If that doesn't work, you'll need to contact unemployment directly. I know getting through is nearly impossible, but using a service like claimyr.com can help - they'll wait on hold for you and call when a rep picks up. 3. As a last resort, accept the KeyBank card but immediately set up a transfer to move the money to your regular account when it arrives. The system is rejecting certain routing numbers that have been flagged in their database for whatever reason. It's annoying but fixable if you can talk to a human.

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