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What is the full form of an ATM?
ATM is the full form of an Automated Teller Machine. It is an electro-mechanical machine that allows clients to perform transactions without the assistance of a branch representative or teller. A debit card or credit cardholder can withdraw cash at most ATMs.
History of ATM
The first ATM, or cash dispenser, was installed at a Barclays Bank branch in London, England, in 1967. While there are records of similar machines being used in Japan as early as the mid-1960s, the Barclays ATM is credited with being the first of its kind to be widely available to the public.
In the 1970s, the interbank transaction system that allowed customers to use one bank’s card at another bank’s ATM was developed. This made it possible for people to access their accounts from practically any ATM location. The popularity of ATMs exploded in the 1980s and 1990s as banks began to install them at ever-growing numbers of branches.
Today, there are more than 2.3 million AT Ms in operation worldwide. This number is expected to grow as more people become comfortable using this technology for their banking needs.
Types of ATM
There are different ATMs, each with its unique capabilities. The most basic type of ATM allows you only to withdraw cash from your account. More complex ATMs offer a variety of other functions, such as the ability to deposit cash, make credit line payments and transfers, and access your account details. Knowing which type of ATM is best for your needs is important to get the most out of your banking experience.
Parts of ATM
An ATM is easy to use. It typically contains input and output tools, allowing people to deposit or withdraw money comfortably. Below are the actual output and input devices of an ATM.
Input Device:
Card reader – Card reader recognizes the card data stored on the ATM card in the magnetic stripe located on the back. The card reader collects the account details and sends them to the server once the card is inserted in the specified location. The cash dispenser allows the cash to be dispensed based on account information and the commands obtained from the user server.
Output Devices:
Dispenser: Dispenses cash corresponding with account information and user commands received from the server. Receipt printer prints a receipt that includes the user’s account information and recent transactions.
Other devices may be included in an ATM, such as a keypad for PIN entry, a touch screen for user interaction, and speakers for audio feedback. However, the card reader, cash dispenser, and receipt printer are the essential parts of an ATM.
Working Principle of ATM
An ATM is a machine that dispenses cash and allows you to conduct transactions such as checking your account balance or making deposits. You need to insert a plastic ATM card into the machine to use an ATM. The ATM will read the information on the magnetic stripe on the back of the card and request your PIN. If the authentication is successful, you will be able to withdraw cash or conduct other transactions.
Functions OF ATM
ATMs are one of the most popular and convenient ways to withdraw cash. But what do you do if your card isn’t accepted or the machine is out of order? Here are some of the most common 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 24 ✕ 7. This means that it is available all the time, which reduces the work pressure on bank staff. ATMs are more useful for travellers as they can withdraw money without any error. ATM also gives service without any error, making it a preferable choice for many people.
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