Year 2000 Date Change Causes EFTPOS Terminal Fiasco in UK

Strategic Insights -

Thousands of EFTPOS terminals were unable to process credit and debit card transactions on December 29, 1999, due to the change in the year, causing long tailbacks in many stores across the UK. The problem, attributed to a software glitch in the Racal EFTPOS terminals, resulted in many stores being forced to use manual paper voucher systems or older terminals to continue operating.

Key Takeaways:

  • Approximately 20,000 Racal EFTPOS terminals were affected by the software glitch, causing widespread disruptions to credit and debit card transactions.
  • The problem was caused by the terminals' inability to handle the Year 2000 date change, specifically the requirement to process dates that overlap the year-end.
  • Racal and HSBC, the UK bank that distributed the terminals, reported that all affected stores were able to fall back on alternative terminals or manual processing systems, but many retailers were still left frustrated by the handling of the issue.
  • Some stores took the initiative to open tills for cash-only transactions to speed up service for customers.
  • Several smaller retailers are reportedly considering legal action against Racal and HSBC for lost trade due to the glitch.
  • The Bank of England downplayed the incident, stating that there was no reason to be concerned about the Year 2000 issue causing major disruptions.

Statistics:

  • 20,000: The number of EFTPOS terminals affected by the software glitch.
  • December 29, 1999: The date on which the software glitch caused widespread disruptions to credit and debit card transactions.
  • 1 January 2000: The expected date on which the terminals would resume normal functions, as reported by Racal and HSBC.

Sources:

  • Newsbytes.com, http://www.newsbytes.com.
  • Wires Online, Y2K, BUSINESS/UK Y2K/PHOTO.