ATM Networks Say They're Ready For 2000

Updated 5:33 PM ET August 25, 1999By Andrew Clark

WASHINGTON (Reuters) - Automatic teller machines and electronic payment systems at retail outlets will work in the Year 2000 and U.S. consumers need not stuff cash in their mattresses at year end, industry executives said Wednesday.

Major U.S. electronic funds transfer networks, which link millions of banks and stores and process billions of ATM and retail transactions every year, have done the work necessary to beat the so-called millennium bug, they said.

"This industry is prepared, it is ready and consumers should have complete confidence that their services are going to work normally -- their payment services, their ATM services -- in the new year," said Dennis Lynch, president and CEO of the New Jersey-based NYCE electronic banking network.

Government regulators and industry experts do not expect major disruptions to the U.S. banking system from the Y2K problem, a coding glitch that could cause some computers to misread the year 2000 and fail, but surveys show some consumers still plan to have more cash than normal on hand just in case.

"Withdrawing large amounts of money from a financial institution at year end is unnecessary and unwarranted," said Stan Paur, president and CEO of the Texas-based PULSE network.

"The ATMs will work, the point of sale will be available," said Paur. "You'll be able to get cash back at tens of thousands of merchants across the country."

The ten largest U.S. funds transfer networks, which serve around 200,000 ATMs and nearly two million stores, have spent over $100 million ensuring their systems will work properly, under the close supervision of federal banking regulators.

"We've been under greater scrutiny on this particular issue than any other issue in the entire history of electronic banking systems," said Ronald Congemi, CEO of California's STAR system.

The networks, which form the electronic "arteries" through which ATM and debit card transactions flow, could even weather disruptions to power or telecommunications services that might result from the millennium date change, the executives said.

Congemi said STAR had laid in enough fuel to run backup power generators for up to two weeks. "And if we have a power outage for any period approaching that length of time, we won't just be worrying about our cash."

Still, many consumers remain concerned. A Gallup poll taken in April found 39 percent of those surveyed said they were very likely to withdraw and set aside cash, while a further 25 percent were somewhat likely to do so.

That's despite the fact that 79 percent of respondents to the poll said they were at least fairly confident they would be able to use their bank cards on Jan. 1, 2000.

Regulators, bankers and consumer groups all worry that criminals will be on the prowl for potentially rich pickings over the millennium and have urged people to leave their money where it is.

"There's no need to bury cash in the back yard. There's no need to stuff $20 bills under your mattress," said Philip Valvardi, president of the Delaware-based MAC network.

"When January 1 comes around, we are prepared and it will be business as usual."

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Ray

-- Ray (ray@totacc.com), August 25, 1999

Answers

Gawd, the smoke is really getting thick here. How about the banking system that feeds the buggers? Last I heard ... not there yet.

Still, the little buggers can be useful NOW. Just remember:

"ATM" really stands for "All The Money"

-- King of Spain (madrid@aol.com), August 25, 1999.

ATM machines are a straw man, really. The banks are ass deep in debt like everyone else.

Also, banks now play the stock market, sell insurance, speculate in derivatives and many other things now that they have been deregulated. We have yet to see how these multiple risk exposures will pan out after the rollover. A broke bank is still broke even if their computers work.

I for one will be fine since I have been cashing out in a controlled fashion for the past year.

-- Forrest Covington (theforrest@mindspring.com), August 25, 1999.

Bank lines are gonna be LOOOOOOONG the last week of december....

does anyone else see that happening? and once they are long, and people see other people getting their money, they'll want THEIR money... and so on, and so on

not to mention I think the majority of americans, will withdraw that 12-30-1999 check in it's entirety---

can the banking system take THAT? i think THAT is much more likely than a traditional "bank run"

-- Super (Slfsl@yahoo.com), August 25, 1999.

Here's the AP Version:

ATM Network Heads Reassure Clients

Ray

-- Ray (ray@tottacc.com), August 25, 1999.

I doubt it will hold together till the last week of December. Mid November is the *latest* I would say to anyone, course we've already taken most of ours out.

-- Dan G (earth_changes@hotmail.com), August 25, 1999.

More from cnn.com story on the same. snip.... "But the industry warned that problems could still occur if the companies that service, operate and record transactions from the teller machines are not prepared for the turnover. So network representatives recommended taking out enough cash for an extended weekend -- but not much more."

(me) On 1/1/00 Sign on ATM-- Out of Order- ATM works fine, but your bank records are gone!

But the bankers group, in line with U.S. government policy, suggests that consumers prepare for the 2000 transition in the same way they would for a weekend snowstorm.

That means keeping handy some extra food and water, candles and flashlights with fresh batteries.

(me) if you need candles and flashlights don't worry about the ATM, it won't work either.

"And since no one can give a 100 percent guarantee against Y2K failure, the best advice for ATM users is ask your bank about its preparations. And, just to be safe, keep good financial records on your own."

(me) Just ask the wolf who is guarding the chicken coop. "Will there be any problems Mr. Banker?" "My company lawyers said there will be no problems that they can't handle, if we have enough money. So our advise is to leave your money here so we will have enough."

Also, on cnn.com they have a survey asking if you trust the ATM's or plan to take money out early. So far 20,399 reponses, 54% Yes they trust ATM's, No 46% said they will take money out early. Better put the spin on overdrive, the sheeple are stirring.

-- Bill (tinfoil@desert.hat.com), August 25, 1999.

Guys guys guys (and gals),

the fed are NOT dumb (well, yes, thay are, actually), but anyhoos they are going to introduce cash withdrawl limits before rollover to try and prevent bank runs...

this is a no brainer...

my estimate... Hmmm, hard to say, the mechanism is basically in place and it can be implemented virtually overnight, a friday night no doubt, we've all heard rumours about september, I favour mid november, or immediately post crash, whichever comes first...

-- Andy (2000EOD@prodigy.net), August 25, 1999.

The bank may be their own worse enemy here. I heard my local station broadcast this propaganda story but they state the banks will have about 4 TIMES MORE MONEY ON HAND at the end of year. I don't know about robbers looking under my mattress when the BANKS will be brimming with cash. The bank are just shooting( no pun intended) themselve in the foot here and making people think more. .

-- y2k dave (xsdaa111@hotmail.com), August 25, 1999.