VIDEO Jonathan Aiken checks into the Y2K-readiness of ATMs across the country. Windows Media 28K 80K  ALSO: Business as Usual Expected for Nation's ATMs on January 1st MESSAGE BOARD: Year 2000 bug

August 25, 1999
Web posted at: 11:28 a.m. EDT (1528 GMT)

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WASHINGTON (CNN) -- Consumers were reassured Wednesday that automated teller machines will be glitch-proof four months from now when the calendar turns to the year 2000.

"There is no need to hide $20 bills under your mattress or bury cash in your back yard, because, come the first of the year, it will be business as usual," said Philip Valvardi, president of MAC, an electronic funds network with 40,000 ATMs in the United States.

Fears stem from the millennium bug -- also called the Y2K bug -- a problem that could cause some computers to read the year 2000 as 1900.

Making ATMs Y2K compliant has been a top priority for banks, the networks that link them and federal regulators who have overseen efforts to be ready for the new century.

Some banks have put out signs reassuring customers that their ATMs will dispense money after the New Year

"ATMs are seen as a real key to consumer service, and institutions have been testing and re-testing those systems," says Donna Tanoue, head of the Federal Deposit Insurance Corporation.

For example, the MAC network of ATMs has done a "very extensive series of such tests," says Valvardi. "And all along the way, we have communicated with both our customers -- the banks -- and also with consumers, to let them know we will be ready."

In all, nine major ATM networks process more than two-thirds of the nearly 5 billion ATM and point-of-sale transactions that occur in the United States each year.

If there is a weak link in the chain, it's with subcontractors hired by ATM networks to manage and complete the transactions customers make. They might experience Y2K failures of their own, as could telephone companies and electric utilities.

"Then, of course, the availability of cash ... would be affected," says Stan Paur, CEO of Pulse, another ATM network.

"Obviously," says Valvardi, "we can't guarantee certain elements that are out of our control, but we are confident that working with vendors, such as the telecommunications companies ... that they will be ready to support us, come the first of the year."

The Federal Reserve Board is printing extra cash this year in anticipation that consumers will want more money in their pockets as the year 2000 approaches

Industry officials say travelers in the United States won't have problems using ATM networks away from home over the New Year's holiday. But it could be an issue for overseas travelers.

The general rule of thumb is: Treat Y2K like a long weekend -- withdraw a little extra cash and keep the rest in the bank.

Because consumers concerned about Y2K problems could want extra money in their pockets, the Federal Reserve Board is making sure there's enough to go around. It's increasing the amount of money it is printing this year by $50 billion.

But 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.

Reporter Jonathan Aiken contributed to this report, written by Jim Morris

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