2. ATMs

The first step towards automated banking was the invention of the Automatic Teller Machines or ATM as they are usually called. Sometimes also called cashpoints or just a 'hole-in-the-wall'.

The first ATM was installed into a bank 40 years ago.

For the first time, customers could get hold of their money without having to queue. This saved the customers time, it also saved the bank a huge amount of money since fewer staff were needed. ATMs are open 24 hours a day and so they are a very convenient way of getting some cash.

ATMs operated by the banks have a daily withdrawal limit. This is to reduce the chances of personal loss through fraud and it makes it more likely that there will be physical cash remaining in the machine for other customers.

All ATMs require you to insert your debit card and enter your PIN number using a number keypad. If the PIN is correct, then you are allowed to proceed. If there is a 'stop' on the card, such as it have been reported as stolen, then the machine will retain the card.

Modern ATMs provide customers with their bank account balance, they can issue money, print statements and even take cash deposits. Customers are able to use almost any ATM in any bank, supermarket or garage. And in this country, it is normally a free service although there are some pay kiosks as well.

ATMs also offer additional services such as changing your PIN number or top up your mobile phone.

ATMs use a simple menu system to offer their services. The customer simply selects the service they want either by pressing the touch screen or a physical button.

How an ATM works

Behind the ATM is a host computer that sends the correct messages to the customer’s bank. If everything is OK then the services requested is carried out.



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Click on this link: Automatic Teller Machine