given the Bank of N.T. Butterfield until next month to ensure that merchants with credit card processing equipment are year 2000 compliant.

The well publicised "millennium bug'' created concern within the computer industry that much of the worldwide computer equipment has counted and displayed the year using just two digits.

There is worldwide worry about how such computers will react at the moment their internal clocks register the year 2000. Computers operating everything from elevators to security systems could be effected.

More contemporary software has corrected the problem, but a worldwide campaign has been underway to alert users of many systems of the potential hazards if non-compliant equipment is in use at the arrival of the new millennium. The bank is now trying to validate and certify that all their merchants are in compliance.

A letter this week from the bank's manager, electronic banking system, Sabrina Phillips, said, "We are required to complete this process by mid-March 1997.

Failure to do so will result in severe financial penalties being imposed on the bank by the credit card associations and also could result in lost transactions and revenue from the merchant and dissatisfaction and loss of goodwill with your customers.

"The Bank of Butterfield would therefore like to impress that it is imperative that all our merchants accommodate this certification process prior to that date.'' Merchants using bank-supplied equipment (Hypercom card readers and PIN equipment) will have the certification process completed by the bank on their behalf.

But those who use other equipment not supplied by the bank, such as DataCap, Synchronics, Micros, Tomax and r Verify, or any other equipment or machinery should check with hardware and software vendors regarding certification for Year 2000 compliance.