What Is An Automated Teller Machine (ATM)?
Known also as self-service kiosks, ATM burst onto the scene in 1967 and appeared in Barclay’s Bank London in 1967
From the time of its invention, ATM has shown to make the transaction process easier for the customers and banks alike. An automated teller machine is an electronic device that dispenses cash and allows the customers to complete basic financial transactions without the assistance of a bank representative or cashier.
People with a debit card or credit can access ATMs to utilize the convenient service it provides. First introduced in London, ATMs have become a ubiquitous machine around the world. From developed countries to developing societies, the ATM machine has secured a strong presence in every major part and small areas of the world.
Surprisingly, small islands, including Federated States of Micronesia and Kiribati, boast automated teller machines. After all, ATMs provide convenient and quick financial solutions, with allowing them to perform self-serve transactions from ATM placements. From cash deposits to money withdrawals, ATMs allow customers to do everyday banking easily.
Understanding ATMs
Known also as self-service kiosks, ATM burst onto the scene in 1967 and appeared in Barclay’s Bank London in 1967. Today, automated teller machines are surging into popularity, due to the modified and updated services they offer to customers.
Surprisingly, there are over 3.5 million ATM machines across the globe except for the U.S. The United States alone contains around 400,000 ATMs across the states. People in different parts of the world refer to ATMs as bank machines and automated bank machines (ABM).
At present, there are two types of ATMs- basic units and complex machines. Well, the basic ATM units facilitate customers only with cash withdrawal and balance inquiry. Modified yet complex machines, on the other hand, provide the customers with more intricate solutions, such as line-of-credit payments, online transactions, check deposits, and account information reporting.
However, to use the machine, a person must have an account in the respective bank that operates ATM. Well, analysts have anticipated that ATMs will become more popular in coming years, with forecasting a significant increase in the number of cash withdrawals. Of course, ATMs today offer full service that saves customers from commuting to the bank every other day for their transaction process.
What Does an ATM Include?
No doubt, ATMs offer the customers plenty of specialized services. The user requests a transaction through the interface, which the machine renders through different components. Therefore, it is essential to know the functions of its parts to understand how ATM works completely.
- Card Reader: Credit cards and debit card contain a magnetic stripe or EMV chip that stores cardholder’s details. On swiping or inserting the card in ATM, the card reader detects cardholder’s account details. The bank verifies the detail to allow the transaction to complete.
- Keypad: The keypad in the automated teller machine allows the user to choose the option for the transaction. The screen of the machine shows several transaction options, including cash withdrawal, check deposit, and balance inquiry, etc. Furthermore, the keypad allows the customer to input the PIN to verify the transaction.
- Cash Dispenser: ATM device contains a cash dispenser at the bottom of the machine. Through it, a customer receives banknotes.
- Printer: The ATM machine contains a printer that gives the customer transaction details in the form of the printed receipt. Moreover, the receipt shows the remaining balance of the cardholder’s account.
The Bottom Line
In a nutshell, automated teller machines are the electronic device that offers basic and complex banking services to customers. While using an ATM, customers can complete transactions without the help of any bank representative. Moreover, customers must have a debit card or credit card with a Personal Identification Number (PIN) to complete the transaction.
While many businesses in the U.S. are incorporating ATMs, MOBILEMONEY can help retail store owners and other business owners to make the best decision in regards to ATM investment.
