The full form of ATM is the Automated Teller Machine. ATM is an electro-mechanical machine that’s used for creating financial transactions from a checking account. These machines are wont to withdraw money from personal bank accounts. This makes the banking process very easy because these machines are automatic and there is no need for the human cashier for transactions. The ATM machine is often of two types; one with basic functions where you’ll withdraw cash and another one with more advanced functions where you’ll also deposit cash.
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Basic ATM Parts:
The ATM is a user-friendly machine. It features various input and output devices to enable people to easily withdraw or deposit money. The basic input and output devices of an ATM are given below:
Card Reader: This input device reads the data of the card which is stored in the magnetic stripe on the backside of the ATM card. When the cardboard board is swiped or inserted into the given space the card reader captures the account details and passes it to the server. On the basis of account details and the commands received from the user, the server allows cash dispensers to dispense the cash.
Keypad: It helps the user to supply the small print asked by the machine-like personal number, amount of money, receipt required or not, etc. The personal identification number shipped within the encrypted form to the server.
Speaker: It provided within the ATM to supply the audio feedback when a key’s pressed.
Display Screen: It displays the transaction-related information on the screen. It shows the steps of money withdrawal one by one in sequence. It can be a CRT screen or an LCD screen.
Receipt Printer: It provides you the receipt with details of transactions printed thereon. It tells you the date and time of the transaction, the withdrawal amount, balance, etc.
Cash Dispenser: it’s the most output device of the ATM because it dispenses the cash. The high precision sensors provided within the ATM allows cash machine to dispense the right amount of money as needed by the user.
How ATM works?
To start the functioning of ATM, you’ve got to insert plastic ATM cards inside the ATM machines. In some machines you have to drop your cards, some machines allow swapping of cards. These ATM cards contain your account details and other security information within the sort of a magnetic strip. When you drop/swap your card, the machine gets your account information and asks for your PIN no. After successful authentication, the machine will allow financial transactions. The full form of ATM is the Automated Teller Machine.
What ATM do?
Now a day, ATM features a lot of functionalities alongside its basic use of money dispensing. Some of them are:
- Cash and cheque deposit
- Fund transfer
- Cash withdrawal and balance inquiry
- PIN change and mini statement
- Bill payments and mobile recharge etc.
The first ATM used to dispense cash for customers by Chemical bank in New York (USA) in 1969. The full form of ATM is the Automated Teller Machine.
Important/Interesting Facts about ATM
The inventor of ATM: John Shepherd Barron.
ATM Pin Number: John Shepherd Barron thought to keep a 6 digits pin number for the ATM, but it was not easy for his wife to remember a 6 digits pin so he decided to organize a 4 digits ATP personal identification number .
World’s first floating ATM: depository financial institution of India (Kerala).
First ATM in India: Installed by HSBC (Hongkong and Shanghai Banking Corporation) in 1987.
The First ATM within the World: It had installed on 27 June 1967 at the Barclays Bank of London.
First Person to use ATM: The famous comedy actor Reg Varney was the primary person to withdraw cash from the ATM.
ATM without an Account: In Romania, which may be a European country , one can withdraw money from an ATM without having a checking account .
Biometric ATM: Biometric ATM used in Brazil. As the name suggests, the user required to scan his or her fingers at these ATMs before withdrawing money.
World’s Highest ATM: It installed in Nathu-La mainly for army personals. Its height is 14,300 feet above water level and operated by Union Bank of India.