OP ED: Card Cos. Work To Diffuse 2000 Crisis

As the millennium approaches, every industry that relies on technology has begun the countdown, carefully checking millions of lines of computer code to ensure computers recognize the date properly. But while the deadline still seems far away for many businesses, the future is now for the travel industry. Fortunately, a cooperative global effort by credit card companies aims to diffuse the issue long before the millennium change.

With almost 150 weekends left until the year 2000, few travelers are worrying whether credit cards will work in the new century. But faced with card expiration dates ending in "00," travel companies need to resolve the problem now.

What started 30 years ago as a cost- and memory-saving feature of computer programs-why use four digits to store the year when two will suffice?-has turned into a potentially damaging computer glitch. Computer programs around the world that rely on two-digit years instead of four face collapse unless quick, effective action is taken now.

The travel industry is not immune. Although the biggest year-2000 headache for travel companies is likely to be reservation systems, the more immediate problem is credit card authorization devices. The reason? Most banks issue cards with three-year card expiration dates; already some banks have issued cards expiring in the year 2000. And the point-of-sale devices that read the cards might misinterpret the date as 1900 instead of 2000. When that happens, the card is rejected, and agents are faced with big headaches and unhappy travelers.

To ensure a seamless transition to the year 2000, MasterCard, Visa and other card firms have launched global, coordinated campaigns. A goal of July 1, 1997 has been set to ensure that all institutions and merchants are able to accept year 2000 cards.

What should you do? Although you will eventually need a comprehensive plan for ensuring your computer systems are year-2000 compliant, you should make sure point-of-sale devices are ready. One way is to arrange for testing through your bank card processor. Most have test cards that can quickly check the status of any terminal. Once faulty terminals are identified, it is usually simple to fix the problem. But for large travel companies, however, in-house software might need more extensive programming changes.

MasterCard and Visa are conducting their own testing. Collaborating with leading card issuers, they've armed employees with year-2000 test cards to search for merchants needing upgrades. The companies are working closely with point-of-sale device manufacturers, software providers, credit card processors and member financial institutions worldwide.

Working together, card companies, processors, the travel industry, merchants and especially consumers can rest easy: Credit cards will be ready for the year 2000.

<I>Jason Rodgers is senior vice president for global acceptance relations at MasterCard International.