3. An automated teller machine (ATM)
is a computerized telecommunications device by which
customers can access their bank accounts in order to make
cash withdrawals and check their account balances in a
public space without the need for a human clerk or bank teller.
Security is provided by the customer
entering a personal identification number (PIN).
ATMs are known by various casual terms including
automated banking machine, money machine, cash machine,
hole-in-the-wall, cashpoint or Bancomat (in Europe and Russia).
4. HISTORY
A mechanical cash dispenser was developed and built by Luther George
Simjian and installed in 1939 in New York .
The idea of a PIN stored on the card was developed by the British engineer
John Rose in 1965.
Then ATM was invented by Scot John Shepherd-Barron in 1967.
The world's first ATM was installed in a branch of Barclays in London in
1967.
The modern, networked ATM was invented in Dallas, by Don Wetzel in 1968.
ATMs first came into wide UK use in 1973 ,the IBM 2984 was designed at
the request of Lloyds Bank.
Notable historical models of ATMs include the IBM 3624 and 473x series,
Diebold 10xx and TABS 9000 series, and NCR 5xxx series.
6. Parts of the Machine:
An ATM has two input devices:
Card reader –
The card reader captures the account information stored on the
magnetic strip on the back of an ATM/debit or credit card.
The host processor uses this information to route the transaction to the
cardholder's bank.
Keypad - The keypad lets the cardholder tell the bank what kind of
transaction is required (cash withdrawal, balance inquiry, etc.) and for
what amount.
Also, the bank requires the cardholder's personal identification number
(PIN) for verify
Federal law requires that the PIN block be sent to
the host processor in encrypted form.
Contd…
7. An ATM has four output devices:
Speaker - The speaker provides beep sounds so that cardholder’s are
will take out the money.
Display screen - The display screen prompts the cardholder through
each step of the transaction process.
Leased-line machines commonly use a monochrome or
color CRT (cathode ray tube) display.
Dial-up machines commonly use a monochrome or color LCD.
Receipt printer - The receipt printer provides the cardholder with a paper
receipt of the transaction.
Cash dispenser - The heart of an ATM is the safe and cash-dispensing
mechanism.
The entire bottom portion of most small ATMs is a safe that contains the cash.
Contd…
9. An ATM is simply a data terminal with two input and four output devices.
Like any other data terminal, the ATM has to connect to, and communicate
through, a host processor.
The host processor is analogous to an Internet service provider (ISP)
in that it is the gateway through which ATM networks become
available to the cardholder (the person wanting the cash).
There are two types of connectivity i.e. a) leased-line b) Dial-up.
Leased-line machines connect directly to the host processor through a four-wire,
point-to-point, dedicated telephone line.
Dial-up ATMs connect to the host processor through a normal phone line using a
modem and a toll-free number, or through an Internet service
provider using a local access number dialed by modem.
Contd…
Leased line
• High throughput.
• Initial cost of setting up very high.
• Monthly operating costs very high.
Dialed-up line
Low throughput.
Initial cost of setting up very less.
Monthly operating costs very less.
12. SAFE USAGE
► Don’t scratch or bent your ATM card.
► Don’t write down your PIN anywhere.
► Make your PIN a series of numbers or alphabets
that you can easily remember.
► Cover the ATM keypad when you type your PIN
so that other people cannot see it.
13. Contd….
PIN should be a number that you could easily remember,
but that would not be readily available to thieves.
15. Benefits
FOR THE BANK:
Increases existing
business.
Provides additional
revenue streams.
FOR THE CUSTOMER:
Saves time and money.
Can get cash whenever
and wherever required.
16. Use of ATM
When we are short on cash,
so we walkover to the ATM
(automated teller machine),
insert our card into the card reader,
respond to the prompts on the
screen, and within a minute you
Walk away with your money and a
receipt.
These machines can now be found at
most supermarkets, heart of the city,
university, convenience stores and
travel centers.
18. CONCLUSION
• Since ATMs are used in banking field
it creates easier path for
transaction. It reduces the
employees & also their works. Less
time is required for transaction. ATM
is working for 24 hours in a day.
• So ATM is otherwise called as EASY
BANKING.
