The Full-Form of ATM is an automated teller machine, it is an electro-mechanical machine having automated banking platforms that allow customers to conduct smooth transactions without the assistance of a branch representative or teller. A debit card or credit cardholder should be able to withdraw cash from most ATMs.
ATMs are advantageous, allowing customers to perform fast self-service transactions such as cash withdrawals, deposits, bill payments, and account-to-account transfers. The fee is usually paid for cash withdrawal by the bank where the account is held, by the ATM operator, or both. Some of these charges can be avoided by using an ATM that is operated directly by the account holder’s bank.
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History of ATM
The first ATM became operational in 1967 at a Barclays Bank branch in London, although there are records of a cash dispenser in Japan dating back to the mid-1960s. So Interbank transactions allowed a customer to use one bank’s card at another bank’s ATM in the 1970s.
And ATMs spread around the world within a few years, gaining a foothold in every major country. So They can now be found in small island nations such as Kiribati. Currently, there are more than 3.5 million ATMs in operation around the world
Full-Form Of ATM: Basic ATM Parts
ATM is a user-friendly machine. It offers various input and output devices to enable people to withdraw or deposit money easily. The basic input and output devices of ATM are given below:
Card Reader: This input device reads the data on the card which is stored in the magnetic stripe on the backside of the ATM card. When the card is swiped or inserted into the space provided, the card reader captures the account details and sends them to the server. Allows cash dispenser to withdraw cash based on account details and orders received from user server.
Keypad: It helps the user to provide the details asked by the machine-like personal identification number, amount of cash, receipt required or not, etc. The PIN number is sent to the server in an encrypted form.
Speaker: This is provided to give audio feedback on pressing the key in ATM.
Display Screen: It displays the transaction-related information on the screen. It shows the cash withdrawal steps one by one in sequence. This can be a CRT screen or an LCD screen.
Receipt Printer: It provides you with the receipt with the transaction details printed on it. It tells you the date and time of the transaction, withdrawal amount, balance, etc.
Cash dispenser: This is the main output device of the ATM as it dispenses cash. The high-precision sensors provided in the ATM allow the cash dispenser to dispense the right amount of cash as required by the user.
How Does ATM Work
You will need to insert the plastic ATM card inside the ATM machines for the ATM to start functioning. Some machines require you to drop your cards, some machines allow card swapping. These ATM cards contain your account details and other security information in the form of a magnetic stripe. When you drop/swap your card, the machine receives your account information and asks for your PIN number. After successful authentication, the machine will allow financial transactions.
Full-Form Of ATM: Different Types Of ATM
There are mainly two types of ATMs.
- Basic units only allow cash withdrawal by customers and provide updated account balances.
- More complex machines in which you can also deposit cash, facilitate credit line payments and transfers, and access account statements.
Working principle of ATM
You need to insert the plastic ATM card inside the ATM to start ATM operations. You need to insert your cards on some machines and some machines require card swapping. These ATM cards carry your account details and other security information on a magnetic stripe. When you drop or swap your card, the computer receives details about your account and requests your PIN number. Once the authentication is validates, the machines allow cash transactions.
Functions of ATM
- cash deposit
- cash withdrawal
- transfer of cash
- statement of accounts
- mini statement
- regular bill payment
- account balance statement
- prepaid mobile recharge
- change pin code
Advantages of ATM
- ATM service is available 24/7.
- It reduces the work pressure on the bank employees.
- ATMs are more useful for travelers.
- ATM gives service without any error.
FAQ On Full-Form Of ATM
Why are ATMs used?
An ATM, which stands for Automatic Teller Machine, is a specialized computer that makes it convenient to manage a bank account holder’s funds. It allows an individual to check account balances, withdraw or deposit money, print details of account activities or transactions, and even purchase tickets.
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Why do ATMs have a 4 digit PIN?
However, his wife, Carolyn Murray, was of the opinion that 6 digits two is too much and that people keep forgetting their PINs. He found it difficult to remember himself and so, he reduced the number to 4 digits, which seemed easier to remember!
Who owns the ATM?
The three main parties in every ATM business are the ATM owner, the location owner, and the ATM processor. The owner of the ATM (“You”) is the one who is buying the machine and keeping it at a specific location or location. The owner of the site is the person you have contacted and negotiated with to install your ATM machine.
What is ATM Business?
The concept of ATM Franchise has come as an option where you can do your own business without much risk and at minimum cost. Setting up an Automated Teller Machine (ATM) is one of the fastest-growing investment options in India.