ATM full form – The full form of ATM is Automated teller Machine, it is an electro-mechanical machine which consists of automated banking platforms that allow clients to perform smooth transactions without the assistance of a branch representative or teller. A debit card or credit cardholders should be able to withdraw cash at most ATMs.
ATMs are beneficial, allowing clients to conduct fast self-service transactions such as cash withdrawals, deposits, bill payments and account-to-account transfers. Fees are usually paid out for cash withdrawals 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 which is operated directly by the account holding bank.
ATMs are recognized in different parts of the world as ABM (Automated Bank Machines), or Cash Machines.
The Basics (ATM full form)
Customers are identified after they insert their plastic ATM card into the machine. Most ATM cards have a magnetic strip or a processing chip, which contains a card number unique to the owner. Then customers are asked to insert a personal identification number (PIN) to verify their identity.
History of ATM
The Inventions of ATM 1960 – 1965
ATMs around since 1960 when American inventor luther simjian and patented the first automated banking machine as the bankograph this device was impressive for its time is it automatically accept cash or cheque at any time of the day in 1960. Simjian is able to convince them your Citibank to take a few is machines are not trying to see how they work they essentially function as follows a user would submit their check or money in the microflim camera inside of the machine would take a snapshot of the deposit customers would then receive a copy of this photo as their receipt then there Bankers will come in and make the physical deposit as a regularly banking hours.
These machines may seem impressive convenience for 1960 the people who wanted to use them were prostitutes and gamblers who wanted an inconspicuous way to make deposit while the bankograph was the first iteration of a machine resembling and ATM it didn’t quite make the cut in its day likely because people did not trust a machine with their money it took until the end of the 1960s people in the US to become willing to use self-service banking meanwhile, in 1966 the first cash dispensing machine was installed in Japan but it is time to a credit account, not a bank account the modern version of an ATM had not yet come to be it was in 1965 that an inventor from scotland named john shepherd-barron had an ingenious idea while taking a bath vending machines for candy existed so why not for cash these first ATMs or automated money dispensing machines used paper vouchers with radioactive ink to withdraw cash in place of credit or debit cards the most a user can withdraw at the time was 10 ponds.
In mid 1969 – 1999
The Machines proved attractive to London banks who struggling with Union demands to end Saturday banking hours while londoners were busy acquainted with automated Tellers in the US a dallas, texas-based engineer named donald wetzel had come up with his own ATM design where is machines were the first to use plastic cards with magnetic strips in 1969.
A bank in Long Island was the first to install one of these early Machines by the early 1970s banks across the US and london had signed up the have their own ATM these banks used massive advertising campaigns to get consumers to be comfortable with the new machines however it wasn’t until 1977.
When ATMs were would be integrated into modern society Citibank invested 100 million US Dollars to install ATMs all across New York city the following year when a message snowstorm shutdown the city ATM usage increased by 20% has all the banks were closed Citibank successful investment proof that ATMs were here to stay as of 2019 more there were more than 3 million ATMs across the globe although their use is on the decline as more people use credit and debit cards for many transactions still, no one can deny how indispensable ATMs are in modern society.
Although the use of ATMs purely for dispensing Cache has decreased it is been a rise in ATM-like machines for other purposes such as airline ticketing and even dispensing cryptocurrencies and medicine now that wee have looked at ATMs fascinating history here are seven more interesting facts about these machines The first ATMs used radioactive paper containing carbon 14 in place of cards this is the same isotope of carbon that is used at in carbon trading after was The first ATM was Installed at a barclays branch in london and the other second was installed in Sweden the first ATM heist was reportedly, though there are records of a cash dispenser in Japan in the mid-1960s. The interbank transaction that allowed a customer to use one bank’s card at another bank’s ATM in the 1970s.
ATMs had spread across the globe in just a few years, establishing a foothold in every major country. They can now be found in small island nations such as Kiribati. Currently, more than 3.5 million ATMs are in operation worldwide.
Various Types of ATM
There are mainly two types of ATMs.
- Basic units permit only cash withdrawal by clients and provide updated account balance.
- The more complicated machines in which you can also deposit cash, facilitate credit line payments and transfers, and access account details.
Basic Parts of ATM
The ATM is easy to use. It contains input and output tools, allowing people to deposit or withdraw money comfortably. Underneath are the essential output and input devices of an ATM.
Input device (ATM full form)
Card reader – Card reader recognizes the card data stored on the ATM card in the magnetic stripe, which is located on the back. The account details are collected by the card reader and sent to the server, once the card is inserted in the specified location. Cash dispenser allows the cash to be dispensed based on account information and the commands obtained from the user server.
Keypad – Keypad helps the user with the requested data from the machine such as personal ID number, cash amount, receipt needed or no needed and other information. In the encrypted form, the PIN is sent to the server.
Output Devices (ATM full form)
Speaker – Speaker is available in the ATM to generate the audio input when a button is pressed.
Display Screen – Displays details on the screen concerning the transaction. It indicates the steps of cash withdrawal, one by one in order. The screen may be CRT or LCD.
Receipt Printer – A receipt shows you information about the transactions printed on it. It informs you of the time and date of the transaction, balance and withdrawal amount, etc.
Cash Dispenser – Cash dispenser is the ATM ‘s essential output tool as it hands out the cash. The highly accurate sensors provided in the ATM allow the cash dispenser to administer the appropriate cash amount as the consumer needs.
Working Principle of ATM
You need to insert plastic ATM cards inside the ATMs to start ATM operating. You have to drop your cards on some machines and some machines require card swapping. These ATM cards contain your account details and other security information on the magnetic stripe. When you drop or swap your card, the computer receives details about your account and requests for your PIN No. Once the authentication is valid, machines will permit cash transactions.
Functions OF ATMs
- Deposit of cash
- Withdrawal of cash
- Transfer of cash
- Accounts details
- Mini statement
- Regular payment of the bill
- Account balance details
- Recharge of prepaid mobile
- Change the pin code
Advantages of ATM
- ATM service is available for 24 ✕ 7.
- It reduces the work pressure on bank staff.
- For travellers, ATMs are more useful.
- ATM gives service without any error.
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