ATM stands for Automated Teller Machine. An ATM is an electronic machine that is used for financial transactions. ATMs allow customers to withdraw cash from their respective bank accounts without them visiting their bank branch. It is a convenient and trouble-free platform where the customers can self-service all their transactions like cash withdrawal, cash deposit, amount transfers without the help of any bank representative. On the transaction, a nominal fee is charged by the operator of the ATM that does not hold our account. This fee can be avoided if we use the ATM of the respective bank in which our account is present. ATM is a much-used option all around the world and in some parts, it is also called Automated Bank Machines.
Procedure:
The bank authorities provide the customer with an ATM card and a security pin to access the card. When this ATM card is inserted in any ATM machine the machine asks for a PIN to be entered. The customer has to enter the PIN that must match the PIN that is stored in the chip of the card. Once the correct PIN is entered, the customer gains access to their bank account and thus they can carry on with their transaction.
History:
The first device that was operational was known as ‘Computer Loan Machine’. This device was supplied by the Japanese in 1966. The machine used to dispense cash as a loan basis after the insertion of a credit card into the machine.
The cash machine was first bought in use in 1967 at the branch of Barclays Bank in North London. This machine was inaugurated by actor Reg Varney. Later in the year 1970, after a discussion with other banks, the card of one bank could be used in another bank’s ATM for transactions. Now ATM is a worldwide used facility which makes the life of people much simpler. There are around more than 3 million ATM’s that are used across the world.
Types of ATM:
The 2 basic types of ATM are:
Onsite ATM: The ATM of the respective branch resides within the premises of the bank branch.
Off-site ATM: The ATM machine is present elsewhere than the bank premises. This is done to make sure people can have better access to their facilities despite the bank branch being far. It is one of the ways the bank gets its promotions for easy accessibility.
The other varieties of ATM are based on the labels they are given:
White label ATM: These are owned by the entities other than the particular bank. There is no logo of any bank on the ATM machines. The first one to be introduced was by the TATA group.
Brown label ATM: These ATMs are operated by a third party other than the bank.
Green label ATM: These ATMs are used for agricultural transaction purposes.
Yellow label ATM: These ATMs are used for the purpose of E-commerce.
Orange label ATM: Is used for share transactions.
Pink label ATM: They are specifically made for access to females for them to avoid any long lines to make their transactions.
Biometric ATM: This ATM uses biometric features like an eye scanner or a fingerprint scanner to be operated.
ATM Machine Parts:
ATMs all around the world are designed differently but they have some basic parts setup.
1. There is a display screen that looks much like the screen of a computer monitor.
2. A speaker through which the instructions can be heard regarding the access to the machine.
3. A card reader is present in which the card has to be inserted soon after which the display shows some options like language, transaction details, and customer ID or PIN after which the person can have access to their account.
4. The keypad is present in which the customer has to type the information the machine asks for the transaction to take place.
5. Cash dispenser is present through which the cash can be collected. The cash is safely and securely stocked into the machine by the bank officials for the customer transaction.
6. A receipt printer is present which prints a sheet that displays the transaction details.
Advantages
There are many advantages of ATM’s which are as follows:-
We can use ATMs everywhere because every bank has an ATM machine.
Money can be withdrawn at any time, as the ATM’s are open 24×7.
We can withdraw money not from a specific bank, but from any bank’s ATM.
It reduces pressure for staff in the bank.
It refuses unnecessary lines in the bank.
Cash flow is easy in this process.
It saves the time of the people and the bank.
ATMs are useful even to check the balance in the account.
It gives a receipt of the balance of the account which can be used as proof whenever needed.
We can even check the last transactions done.
It is a secure process in which people use their own ATM card to withdraw money.
Everyone can use an ATM as it has many language options.
People can change the pin through the ATM, they don’t have to rush to the bank every now and then.
It has a security pin that is only known to the cardholder which makes it more secure.
ATM’s are more useful to travelers because not everyone travels carrying cash.
ATM’s are located in every corner of the city, even in the railway stations, airports, hospitals, malls etc. which makes it convenient.
Another use of the ATM is a deposit of cash from anywhere straight to the desired account.
Disadvantages
There are some disadvantages of ATM to which are mentioned below:-
It has a limitation for the withdrawal of cash.
Not everywhere ATMs are available.
Sometimes the servers are down because of which it is not possible to withdraw the cash in an emergency.
Not every ATM has sufficient cash for everyone, sometimes what happens is that it runs out of cash.
Robbers and thieves loot the ATMs
Using ATMs charges some charges as routine charges, which not everyone can afford every time especially the poor people.
There are chances that there can be fraud by the hackers in which there is a risk of the money deposited in the account.
Rural areas do not have access to ATMs as not every rural area has a bank.
People can take advantage if they know the pin of the ATM card of others.
When the ATMs are used frequently it goes out of order.
The new problem is that ATM cards are introduced with a chip installed on the card which nowadays is only accepted by the machine to withdraw cash. People who have not updated their cards can face trouble withdrawing from ATMs.
Usually, ATM PINs are 4 digit numbers, but some ATM cards have 6 digits to secure them more and people tend to forget the pin to which they need to reset it to use it again.
Only a limited amount can be used per day because every bank has given a limit to withdraw and spend per day.
ATMs give out the particular denomination to which it becomes to make change out of it.
People who are uneducated cannot use ATMs because everything is written on the screen and they cannot read it. They need help from others to use it.
There are modern techniques used for fraud like cloning the ATM card, they use hidden cameras to capture the security pin of an ATM card so that they can easily have access to their account.
Having the convenience to reach out for cash easily can affect the spending of a person more than usual.
ATM stands for Automated Teller Machine. An ATM is an electronic machine that is used for financial transactions. ATMs allow customers to withdraw cash from their respective bank accounts without them visiting their bank branch. It is a convenient and trouble-free platform where the customers can self-service all their transactions like cash withdrawal, cash deposit, amount transfers without the help of any bank representative. On the transaction, a nominal fee is charged by the operator of the ATM that does not hold our account. This fee can be avoided if we use the ATM of the respective bank in which our account is present. ATM is a much-used option all around the world and in some parts, it is also called Automated Bank Machines.
Procedure:
The bank authorities provide the customer with an ATM card and a security pin to access the card. When this ATM card is inserted in any ATM machine the machine asks for a PIN to be entered. The customer has to enter the PIN that must match the PIN that is stored in the chip of the card. Once the correct PIN is entered, the customer gains access to their bank account and thus they can carry on with their transaction.
History:
The first device that was operational was known as ‘Computer Loan Machine’. This device was supplied by the Japanese in 1966. The machine used to dispense cash as a loan basis after the insertion of a credit card into the machine.
The cash machine was first bought in use in 1967 at the branch of Barclays Bank in North London. This machine was inaugurated by actor Reg Varney. Later in the year 1970, after a discussion with other banks, the card of one bank could be used in another bank’s ATM for transactions. Now ATM is a worldwide used facility which makes the life of people much simpler. There are around more than 3 million ATM’s that are used across the world.
Types of ATM:
The 2 basic types of ATM are:
Onsite ATM: The ATM of the respective branch resides within the premises of the bank branch.
Off-site ATM: The ATM machine is present elsewhere than the bank premises. This is done to make sure people can have better access to their facilities despite the bank branch being far. It is one of the ways the bank gets its promotions for easy accessibility.
The other varieties of ATM are based on the labels they are given:
White label ATM: These are owned by the entities other than the particular bank. There is no logo of any bank on the ATM machines. The first one to be introduced was by the TATA group.
Brown label ATM: These ATMs are operated by a third party other than the bank.
Green label ATM: These ATMs are used for agricultural transaction purposes.
Yellow label ATM: These ATMs are used for the purpose of E-commerce.
Orange label ATM: Is used for share transactions.
Pink label ATM: They are specifically made for access to females for them to avoid any long lines to make their transactions.
Biometric ATM: This ATM uses biometric features like an eye scanner or a fingerprint scanner to be operated.
ATM Machine Parts:
ATMs all around the world are designed differently but they have some basic parts setup.
1. There is a display screen that looks much like the screen of a computer monitor.
2. A speaker through which the instructions can be heard regarding the access to the machine.
3. A card reader is present in which the card has to be inserted soon after which the display shows some options like language, transaction details, and customer ID or PIN after which the person can have access to their account.
4. The keypad is present in which the customer has to type the information the machine asks for the transaction to take place.
5. Cash dispenser is present through which the cash can be collected. The cash is safely and securely stocked into the machine by the bank officials for the customer transaction.
6. A receipt printer is present which prints a sheet that displays the transaction details.
Advantages
There are many advantages of ATM’s which are as follows:-
We can use ATMs everywhere because every bank has an ATM machine.
Money can be withdrawn at any time, as the ATM’s are open 24×7.
We can withdraw money not from a specific bank, but from any bank’s ATM.
It reduces pressure for staff in the bank.
It refuses unnecessary lines in the bank.
Cash flow is easy in this process.
It saves the time of the people and the bank.
ATMs are useful even to check the balance in the account.
It gives a receipt of the balance of the account which can be used as proof whenever needed.
We can even check the last transactions done.
It is a secure process in which people use their own ATM card to withdraw money.
Everyone can use an ATM as it has many language options.
People can change the pin through the ATM, they don’t have to rush to the bank every now and then.
It has a security pin that is only known to the cardholder which makes it more secure.
ATM’s are more useful to travelers because not everyone travels carrying cash.
ATM’s are located in every corner of the city, even in the railway stations, airports, hospitals, malls etc. which makes it convenient.
Another use of the ATM is a deposit of cash from anywhere straight to the desired account.
Disadvantages
There are some disadvantages of ATM to which are mentioned below:-
It has a limitation for the withdrawal of cash.
Not everywhere ATMs are available.
Sometimes the servers are down because of which it is not possible to withdraw the cash in an emergency.
Not every ATM has sufficient cash for everyone, sometimes what happens is that it runs out of cash.
Robbers and thieves loot the ATMs
Using ATMs charges some charges as routine charges, which not everyone can afford every time especially the poor people.
There are chances that there can be fraud by the hackers in which there is a risk of the money deposited in the account.
Rural areas do not have access to ATMs as not every rural area has a bank.
People can take advantage if they know the pin of the ATM card of others.
When the ATMs are used frequently it goes out of order.
The new problem is that ATM cards are introduced with a chip installed on the card which nowadays is only accepted by the machine to withdraw cash. People who have not updated their cards can face trouble withdrawing from ATMs.
Usually, ATM PINs are 4 digit numbers, but some ATM cards have 6 digits to secure them more and people tend to forget the pin to which they need to reset it to use it again.
Only a limited amount can be used per day because every bank has given a limit to withdraw and spend per day.
ATMs give out the particular denomination to which it becomes to make change out of it.
People who are uneducated cannot use ATMs because everything is written on the screen and they cannot read it. They need help from others to use it.
There are modern techniques used for fraud like cloning the ATM card, they use hidden cameras to capture the security pin of an ATM card so that they can easily have access to their account.
Having the convenience to reach out for cash easily can affect the spending of a person more than usual.
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