Personal Finance: Are we facing terminal failure?
Shops and banks are working against the clock to ensure tills don't reject credit cards because of the Millennium. Paul Slade reports.
Saturday 21 February 1998
The problem arises when retailer systems fail to recognise the cards as valid. Like other computer systems, they were originally programmed to read only the final two digits of any given year, and crash when confronted with a reading of "00".
Visa and Mastercard's embargo on producing cards expiring in the year 2000 ended on 1 October last year. Barclays started producing 00 cards immediately, and now has over 1 million in use. The bank has so far had about 350 complaints from cardholders who have had their 00 cards rejected in shops and other outlets round the world, including 30 complaints in January.
Most other card issuers are also distributing 00 cards now, although none started as soon as Barclays. About four in 10 of the Barclays complaints arose in October. "Systems are becoming more compliant as time goes on," says the bank's Kirsty Robbie.
The big high street banks also supply their own credit card terminals to retailers, and have been busy updating those terminals to cope with the millennium bug for the past few years. Now, they say, all but a tiny handful of systems should be able to accept 00 cards with no problem.
But American Express is refusing to start producing its own 00 cards yet because it fears retail outlets worldwide will not be ready to accept them. Atalia DaSilva of American Express says: "I'm sure we'll issue year 2000 cards this year, but I don't know when. We want to make sure the merchants are ready to accept them in their point of sale devices. When a merchant's system rejects a card, it doesn't say why. It just rejects it. We want to avoid that happening."
Abbey National will not start issuing 00 cards till June this year, when its own systems testing is complete and it can be "completely confident" cards will not be rejected at point of sale. This has meant cutting the lifetime of its own cards to just 18 months - an expensive move for the bank.
NatWest started producing 00 credit cards about a month ago, and has since issued some 400,000, with no complaints so far. The bank has also been responsible for modifying the 170,000 terminals it has in shops and other retail outlets.
Last month two cases came to light where NatWest's modification of its terminals had failed. Both happened in Ikea branches, where customers' 00 cards were rejected, forcing staff to key in card details manually.
NatWest's Nick Gill says: "The upgrade had been put through for the year 2000, but there was a problem with the software. We realised that we'd need to write a new bit of software for it, because it was a bespoke terminal."
Mr Gill says the problem affected fewer than 100 of the terminals NatWest is responsible for, all of which have now been successfully dealt with. He says the bank is ahead of its rivals on year 2000 compliance.
Liz Phillips of the Credit Card Research Group says: "When you start issuing cards, you start finding the outlets where you're getting problems. It's often smaller retailers who've got a second-hand terminal which may not have been made Millennium compliant. The good thing is that the system behind the terminals is working OK."
Gerard Long, manager of Midland's year 2000 programme says: "It's where the terminals are owned by the retailer that there's an issue. They should go to their systems supplier and ensure they get a compliant version. There's only a small number of those out there and they are being addressed."
Some believe there will be more problems for cardholders using their plastic overseas than for those in the UK. Erica Harper of Royal Bank of Scotland says: "I suppose the test will be when the holiday season arrives. Internationally, I think there's likely to be more problems. People have always been advised to take lots of ways of paying for things when they go away, but this year I think that will apply all the more."
Visa divides the world up into six regions, all of which it says are 99 per cent or 100 per cent 2000-compliant. Visa's Matthew Talbot says: "We don't see any particular problem even in the most far-flung places. In the smaller, more remote, places, where Visa might be accepted, often you'll find a manual swipe machine, and no electronics at all."
If you should find your own 00 card rejected in a shop or restaurant, the owner should be able to phone whichever bank supplied his terminal to get authorisation, take a manual imprint of the card and put the transaction through while you wait.
Independent Partners; request a free guide on NISAs from Hargreaves Lansdown
Use the new pension freedoms to boost your retirement income
10 tips for taking out a personal loan
The 10 Best money-saving sites
Bank-beating exchange rates on your international payments
Simon Read: Payday loans that are marketed at kids? Why not? They're already brainwashed into wanting products
- 1 2015 General Election: Green party will not appear in TV debate alongside Ukip – says BBC
- 2 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 3 Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Of course, teenage girls need role models – but not like beauty vlogger Zoella
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Muslims, immigration and teenage pregnancy: British people are ignorant about almost everything
Nigel Farage and Frankie Boyle clash over Andrew Lawrence's 'Mock the Week' criticism
iJobs Money & Business
£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...
£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...
£45,000 - £65,000: Saxton Leigh: Our client is a well-known APAC Corporate and...
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...
Day In a Page
An eight-bedroom house on the south side of the The Green with cinema, wine cellars and summer house
This 17th century beauty is full of rustic cosiness, while the detached home office means you can also run a business
This five-bedroom red-brick beauty overlooks the village green and sits in just under two acres of land
Four exclusive apartments in a Grade II-listed former medical school with 2,275 sq ft of living space and 18ft ceilings
A five-bedroom terraced house on the popular Peterborough Estate, ideally located for both Eel Brook Common and South Park
A state-of-the-art farm-building conversion on the former Cliveden Estate, with 11,420sq ft of internal space, cinema and wine cellar
A three-bedroom, 15th-century cottage with original features in the picturesque village of Sissinghurst
A six-bedroom terraced house with large south-facing roof terrace, cinema room and wine cellar
A new seven-bedroom home built in Queen Anne-style with swimming pool and parkland views in Mortimer
A listed, four-bedroom farmhouse in the rural hamlet of Rushall with detached barn, four acres of gardens and paddocks
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens
A seven-bedroom Grade II-listed property with a separate self-contained apartment
A five-bedroom Victorian house with three reception rooms and galleried landing, £695,000