ATM: Automatic Teller Machine
ATM’s full form is an automated teller machine. ATM is an electro-mechanical machine used to manage financial transactions from a bank account. These machines are used to withdraw money from personal computers.
This makes the banking process much easier as these machines are automated and do not require a human cashier for transactions. ATM machines are of two types; One with the basic functions of withdrawing cash and the other with more advanced functions where you can deposit cash.
Basic ATM Components:
ATM is a user-friendly machine. It introduces various input and output devices to allow people to easily withdraw or deposit money. The basic input and output devices of the ATM are as follows:
Card Reader: This input device reads the data of the card, which is stored in the magnetic stripe on the back side of the ATM card. When the card is swiped or inserted in a given location, the card reader captures the account details and sends them to the server. It allows the customer to withdraw cash based on account details and orders received from the server.
Keypad: This enables the user to provide information such as personal identification number, amount of cash, receipt required or not. The PIN number is sent to the server in encrypted form.
Speaker: This is provided to provide audio feedback at the ATM when the key is pressed.
Display screen: This will display the transaction related information on the screen. It shows the cash withdrawal steps one by one. This could be a CRT screen or an LCD screen.
Acknowledgment Printer: It gives you a receipt with details of transactions printed on it. It tells you the date and time of the transaction, the amount of the withdrawal, the balance etc.
Cash Distributor: This is the main product of ATM as it disputes the cache. High precision sensors provided in an ATM allow the cash dispenser to collect the cash the customer needs.
How ATM Works:
To enable the functioning of ATMs, you must insert plastic ATM cards inside the ATM machines. In some machines you have to drop your cards, some machines allow you to change cards. These ATM cards contain your account details and other security information in the form of a magnetic strip. When you drop / exchange your card, the machine receives your account information and asks for your PIN number. After successful authentication, the machine allows financial transactions.
That’s what ATM Does:
Nowadays, ATMs have a lot of functionality, along with the basic use of cash disbursements. Some of them are:
Cash and check deposit
Exchange of funds
Cash Withdrawal and Balance Inquiry
Pin change and mini statement
Bill payment and mobile recharge.
The first ATMs were used in 1969 by Chemical Bank of New York (USA) to withdraw cash for customers.
Note: PIN is a 4 digit security number provided by the bank with an ATM card. The pin number is variable, you can change it according to your convenience.
Important / interesting things about ATMs
ATM inventor: John Shepard Baron.
ATM PIN Number: John Shepard Baron wanted to have a 6-digit PIN for the ATM, but his 6-digit PIN was not easy for his wife to remember, so he decided to produce a 4-digit ATP PIN number.
World’s first floating ATM: State Bank of India (Kerala)
The first ATM in India: Established in 1987 by HSBC (Hong Kong and Shanghai Banking Corporation).
World’s first ATM: It was founded on 27 June 1967 at Barclays Bank in London.
First person to use ATM: Renowned comic actor Reg Varney was the first to withdraw cash from an ATM.
Accountless ATM: In the European country of Romania, anyone can borrow money from an ATM without a bank account.
Biometric ATM: Biometric ATM is used in Brazil. As the name suggests, consumers should scan their fingers at these ATMs before withdrawing the money.
World’s Highest ATM: It is installed in Nathu-La mainly for the army personals. Its height is 14,300 feet above sea level and is operated by Union Bank of India.
ATM Machine and ATM
Let’s see the image of ATM Machine.
Let’s see the image of ATM card.