Credit Card Glitch : LUSENET : TimeBomb 2000 (Y2000) : One Thread

From the Government Community Conversations e-list

The computers of one of the largest point of sale credit card approval companies are posting transactions multiple times to credit card accounts. My information is that the President's Council and the Federal Reserve has decided not to make any public statement about this since it is a "private sector problem" although the banks wanted them to do so. Bottom line, watch your credit card bills and if you can do so to avoid using your credit card until this is fixed -- It shouldn't be long as I understand that the patch is available for download to the POS terminals and the media is already on to the story.

Leon A. Kappelman, Ph.D. Associate Professor, Business Computer Information Systems Associate Director, Center for Quality & Productivity College of Business Administration, Univ. of North Texas Co-chair, Society for Info. Management Y2K Working Group Steering Committee, YES Volunteer Corps ( Voice: 940-565-4698 Fax: 940-369-7623 Email: Website: ============================================================

-- ExCop (, January 07, 2000


this report is 100% true. I happen to sleep with a SVP of a major bank. Check your statements for postings from 31 December. This is not a crisis, however, and the banks will make adjustments. Just double check.

-- Larry McMurtry (, January 07, 2000.

Theuy'll make adjustments, after you PROVE that you have NOT made the transactions, to their satisfaction......

Night train

-- jes an ol footballer (nighttr@in.lane), January 07, 2000.

Larry, are living in "sin"? Think of the consequences! (I hope the SVP you're sleeping with isn't a guy!)

-- The Evangelist (, January 07, 2000.

larry, you gave me a good laugh. "i sleep with...." whatever.

-- tt (, January 07, 2000.

Unless "credit" means something else in USA law, then the onus is very much on the credit company to prove that you do owe them the money. Without your signature on paper or your voice on a tape (or perhaps a digitally signed and encrypted e-transaction), they should have no chance.

In practice it's little skin off their nose anyway. They just refund the disputed transaction to your account, withold payment from the retailer, and let the retailer make the next move, which is to provide the card company with the above paperwork or tape. No evidence - no money.

IANAL (but it works this way in the UK!)

-- Nigel (, January 07, 2000.


Did the Government Community Conversations e-list indicate what is the connection between Leon Kappelman and the paragraph above his name? For example, is he the author of it? If so, was he the person who published it in that e-list. If he is not the person who published it in that e-list, did the person who did publish it in that e-list make it clear how they came upon the statement and why Leon is mentioned?

Thanks in advance.


-- Jerry B (, January 07, 2000.


Are you part of the "oldest profession" crowd?

-- Just (, January 07, 2000.

Nigel, that's how it works here in the States as well. The only thing you have to do is call up and 'contest' the charge. They will then suspend the charge so that you don't pay any interest on it and then they go after the retailer.

The problem is when 5,000,000 customers do this all at one time. Not pretty.

-- ..- (dit@dot.dash), January 07, 2000.

Nah - just getting my finances in shape prior to making the big purchase. I guess sleeping with wasn't the appropriate phrase...

-- Larry McMurtry (, January 07, 2000.

I can confirm this as well. Check your statements carefully.


-- Roland (, January 07, 2000.

On the GICC site, the following was posted about the origin of the content of the post by which this thread opens, and which had previously been posted in a thread there:

"Leon sent the information contained in the second post of this thread via the Civic Prep COMM list, a group of Y2K grassroots individuals who meet twice monthly via conference call which is administered by John Koskinen's staff."

"Subj: Y2K ALERT: Watch your credit card bills Date: Thu, 6 Jan 2000 6:54:24 PM Eastern Standard Time From: "Leon A. Kappelman" "

So, it is indeed attributed to Leon Kappelman.


-- Jerry B (, January 07, 2000.


Y2K glitch causes duplicate credit card transactions

The problems afflict retailers that didn't upgrade card-swipe devices that verify credit status

Friday, January 7, 2000

By Steve Woodward of The Oregonian staff

Y2K problems are causing a small number of credit and debit card customers in Oregon and worldwide to be billed multiple times for the same purchase.

Customers shouldn't see duplicate transactions on their bills, however, thanks to safeguard systems used by credit card companies to catch and delete duplicates.

The problems afflict an unknown number of retail merchants who failed to upgrade software that allows card-swipe devices to verify a customer's credit worthiness. Most merchants who use the software, ICVerify, have successfully installed the Y2K-compliant version since it became available last spring. Others opted to wait until it failed.

"We hoped that everybody would upgrade their software, but not everybody did," said Sydney Rubin, a spokeswoman for CyberCash, a large electronic commerce firm based in Reston, Va., that makes ICVerify.

"Last year, we did mailings; we sent e-mail; we even phoned some of them."

The problems are not widespread. CyberCash had received 50 calls from merchants by Thursday. Rubin said Visa International, MasterCard and other credit card companies pinpointed the problem when a "larger-than-normal number" of merchants reported trouble with the software.

In Oregon, Wells Fargo Bank has about 60 merchant customers that are having problems, said Tom Unger, a bank spokesman. He said the bank expects the total number of affected merchants to be fewer than 1 percent of the bank's total customer base.

Unger advised customers who see duplicate transactions on their bills to call the customer service phone number on the backs of the credit cards. He said Wells Fargo would waive overdraft or over-limit fees for customers who overdraw their accounts as a result of the computer glitch.

Bank of America Oregon had few details about its situation Thursday.

"We believe it may have some impact," said Rich Brown, bank spokesman.

CyberCash's Rubin said the affected transactions are repeatedly posted to the cardholder's account every 24 hours. Third-party companies that process the accounts have systems in place that automatically eliminate duplicates, she said.

Merchants can still update their software by visiting CyberCash's Web site,, or by calling a toll-free customer service number, 800-900-6133.

The problem can affect virtually any credit or debit card, including Visa, MasterCard, American Express, Discover, Diners and Carte Blanche.

-- Homer Beanfang (, January 07, 2000.

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