A 2010 software bug has left millions of German debit and credit card holders unable to withdraw money or make payments in shops, and thousands stranded on holiday with no access to cash.
About 30 million chip and pin cards – a quarter of those in circulation in Germany – are thought to have been affected by the programming failure, which meant that microchips in cards could not recognise the year change to 2010.
A French card manufacturer, Gemalto, admitted yesterday it was to blame for the failure, which it is estimated will cost €300 million to rectify. Gemalto-manufactured cards in other countries were not affected.
Although some cash machines were quickly reconfigured to override the 2010 problem, many bank customers were forced to queue to withdraw cash over the counter.
Many Germans were stranded at ski resorts with no way of paying hotel and restaurant bills.
The problem will do little to boost Germans’ confidence in credit cards, still a relatively new method of payment in a country that is probably the most cautious in Europe when it comes to taking on debt. – (Guardian service)