Carry cash as well as a card, says German bank association

A programming error is causing debit and credit card transactions to be rejected

An end-of-the-decade programming glitch is causing problems for holders of millions of German credit and automated teller machine cards.

Some 20 million ATM cards, known as Girocards or EC cards in Germany, and 3.5 million credit cards are affected, according to a statement Tuesday by the German Savings Banks and Giro Association (DSGV). Officials from DSGV could not be immediately reached.

The problem is related to a programming error with ATM terminals and point-of-sale devices. DSGV said it expected up to 85% of the POS terminals to be updated and fixed by Thursday.

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An end-of-the-decade programming glitch is causing problems for holders of millions of German credit and automated teller machine cards.

Some 20 million ATM cards, known as Girocards or EC cards in Germany, and 3.5 million credit cards are affected, according to a statement Tuesday by the German Savings Banks and Giro Association (DSGV). Officials from DSGV could not be immediately reached.

The problem is related to a programming error with ATM terminals and point-of-sale devices. DSGV said it expected up to 85% of the POS terminals to be updated and fixed by Thursday.

Most of the cards were issued by German financial institutions. Those holding German cards who are overseas can try to use their cards, as about half are fine and the other half will work despite the problems with terminals within Germany, DSGV said. But the association did recommend that people keep enough cash on hand just in case the cards don't work.

The fiasco prompted one smart-card vendor to issue a press release saying its cards were not at fault. Oberthur Technologies, a smart-card and ATM technology vendor in France, said in a statement on Wednesday that its German-issued cards were functioning.

But security vendor Gemalto said its cards were experiencing problems. The vendor issued a statement on Tuesday saying it had been working with German banks since Sunday afternoon on a fix.

Part of the problem appears to be rooted in the cards. Gemalto said it was working on a "corrective process that avoids the replacement of the affected cards."

It wasn't clear from DSGV's statement how banking customers could identify cards affected by the problems.

The IDG News Service is a Network World affiliate.