An ATM is a computerized machine that dispenses cash and offers basic financial services to bank customers without human interaction. It reduces long lines during banking hours and is available 24/7. Customers use a bank card and PIN to access the machine, and transaction fees may apply. The first ATM was created by Barclays Bank in 1967.
An automated teller machine (ATM or automated teller machine) is a computerized machine designed to dispense cash to bank customers without the need for human interaction. The ATM can also take deposits, transfer money between bank accounts, and provide other basic financial services.
Most banks have one or more “local” ATMs so that customers have access to services 24 hours a day, seven days a week. During banking hours, the ATM can reduce long lines inside the bank by providing an alternative to a human teller. Even better, the ATM is still available long after the bank closes. If you need cash at night, on a holiday or on a Sunday, the ATM is there to serve you.
To use an ATM, the customer feeds it with a bank card, sometimes called a debit card. This looks like a credit card but is issued by the bank for use with an ATM. Once the machine reads the card’s magnetic stripe, it requests a personal identification number, or PIN. The PIN provides security in case the card is lost or falls into the wrong hands.
Upon entering the associated PIN correctly, the customer will see a list of options on the ATM screen. Through the touch screen or buttons, the customer navigates through the ATM screens to complete the desired transaction. If the customer chooses to withdraw cash, the cash is dispersed through a slot in the feeder. If making a deposit, the customer inserts the deposit envelope into a deposit slot when prompted by the machine. Receipts are optionally printed for the customer, but the ATM retains a record of all transactions. Linked to the bank’s computer system, the ATM can automatically deduct withdrawals or add deposits to the customer’s account(s).
Many banks do not charge customers a fee for using their own ATMs. However, if you withdraw cash from an ATM that is not owned by your bank, you will likely incur transaction fees. ATMs have typically published non-customer fee information, although this will not include fees your own bank might charge.
Patents for ATMs were reportedly filed as early as the 1930s, but the first real ATM is credited to Barclays Bank of London in 1967. The latest incarnations of these now-ubiquitous machines include Linux and Microsoft-based displays. , and ATMs for the blind .
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