3. 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 all the various ATM networks
become available to the cardholder (the person
wanting the cash).
4. British actor Reg Varney using the world's first ATM in 1967,
located at a branch of Barclays Bank, Enfield. The system was
developed by De La Rue
• A mechanical cash dispenser was developed and built by
Luther George Simjian and installed in 1939 in New York City by
the City Bank of New York, but removed after 6 months due to
the lack of customer acceptance.[1]
• The ATM got smaller, faster and easier over the years.
Thereafter, the history of ATMs paused for over 25 years, until
De La Rue developed the first electronic ATM, which was
installed first in Enfield Town in North London, United Kingdom
[2]
on 27 June 1967 by Barclays Bank.[3] However, the modern,
networked ATM was invented in Dallas, Texas, by Don Wetzel in
1968. Wetzel was a department head at an automated baggage-
handling company called Docutel. In 1995 the Smithsonian's
National Museum of American History recognized Docutel and
Wetzel as the inventors of the ATM.
5. ATMs are placed not only near or inside the premises of banks,
but also in locations such as shopping centers/malls, airports,
grocery stores, petrol/gas stations, restaurants, or any place large
numbers of people may gather. These represent two types of ATM
installations: on and off premise. On premise ATMs are typically
more advanced, multi-function machines that complement an
actual bank branch's capabilities and thus more expensive. Off
premise machines are deployed by financial institutions and also
ISOs (or Independent Sales Organizations) where there is usually
just a straight need for cash, so they typically are the cheaper
mono-function devices. In Canada, when an ATM is not operated by
a financial institution it is known as a "White Label ATM".
•
6. HARDWARE
•Card reader - The card reader captures the
account information stored on the magnetic stripe 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.
•You're probably one of the millions who has used an
ATM. As you know, an ATM has two input devices:
•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 verification.
Federal law requires that the PIN block be sent to
the host processor in encrypted form.
•
7. OUTPUT DEVICES:
•Speaker - The speaker provides the cardholder
with auditory feedback when a key is pressed.
•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.
8.
9. SOFTWARE
Typical platforms used in ATM development include RMX, OS/2,
and Microsoft operating systems (such as MS-DOS, PC-DOS,
Windows NT, Windows 2000, Windows XP Professional, or
Windows XP Embedded). Java, Linux and Unix may also be used in
these environments.
Linux is also finding some reception in the ATM marketplace.
10. Settlement Funds
When a cardholder wants to do an ATM transaction, 1) He or she
provides the necessary information by means of the card reader
and keypad.
2) The ATM forwards this information to the host processor,
which routes the transaction request to the cardholder's bank or
the institution that issued the card.
3) If the cardholder is requesting cash, the host processor causes
an electronic funds transfer to take place from the customer's
bank account to the host processor's account.
4) Once the funds are transferred to the host processor's bank
account, the processor sends an approval code to the ATM
authorizing the machine to dispense the cash.
11.
12. ALTERNATIVES USES:
Although ATMs were originally developed as just cash dispensers, they have evolved
to include many other bank-related functions. In some countries, ATMs include
many functions which are not directly related to the management of one's own
bank account, such as:
•Deposit currency recognition, acceptance, and recycling
•Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees,
taxes, etc.)
•Printing bank statements
•Updating passbooks
•Purchasing
•Postage stamps.
•Lottery tickets
•train tickets
•Shopping mall gift certificates.
•Games and promotional features
•Donating to charities
13. RELIABILITY
Before an ATM is placed in a public place, it typically has
undergone extensive testing with both test money and the
backend computer systems that allow it to perform
transactions.
ATMs and the supporting electronic financial networks are
generally very reliable, with industry benchmarks typically
producing 98.25% customer availability for ATMs and up to
99.999% availability for host systems. If ATMs do go out of
service, customers could be left without the ability to make
transactions until the beginning of their bank's next time of
opening hours.
