An automated teller machine (ATM) is an electronic banking terminal that enables customers to conduct basic transactions without the assistance of a teller or branch representative. Anyone with a credit or debit card can get cash at most ATMs. Click here to know how to Import & Export Data from Excel to Tally.
ATMs are convenient because they allow customers to do self-service operations such as deposits, cash withdrawals, bill payments, and account transfers. ATMs are also known as automated bank machines (ABM) or cash machines in different regions of the world.
Types of ATMs
ATMs are divided into two categories. Customers can only withdraw cash and receive updated account balances from basic units. Deposits are accepted, line-of-credit payments and transfers are facilitated, and account information is accessed on the more advanced devices.
A user must often be an account holder with the bank that controls the machine in order to access the advanced capabilities of the complicated machines.
Analysts predict that ATMs will become even more popular and that the number of ATM withdrawals will rise. Rather than or in addition to traditional bank tellers, future ATMs are anticipated to be full-service terminals.
Bitcoin ATMs, internet-connected devices that dispense cash in exchange for crypto or accept cash or credit card as payment, allow cryptocurrency aficionados to buy and sell Bitcoin and other cryptocurrencies. Nearly 10,000 Bitcoin ATMs have already been installed throughout the world.
ATM Design Elements
Despite the fact that each ATM has a unique design, they all have the same basic components:
- Card reader: This component reads the magnetic stripe on the back of the card or the chip on the front of the card
- Keypad: The customer uses the keypad to enter information such as their personal identification number (PIN), the kind of transaction required, and the transaction amount
- Bill dispenser: Bills are dispensed through a slot in the machine that is connected to a safe at the machine’s bottom
- Printer: Consumers can ask for receipts to be printed here if they need them. The type of transaction, the amount, and the account balance are all recorded on the receipt
- Screen: The ATM displays instructions that aid the customer through the transaction process. Details such as account information and balances are also displayed on the screen.
Slots for depositing paper checks or cash are now common on full-service machines.
Special Considerations: Using ATMs
ATMs are located both inside and outside of bank branches. Other ATMs can be found in high-traffic areas such as shopping malls, supermarkets, convenience stores, airports, bus and train stations, petrol stations, casinos, restaurants, and other places. The majority of ATMs in banks are multi-functional, whereas off-site ATMs are mostly or totally geared for cash withdrawals.
To conduct a transaction at an ATM, customers must use a plastic card—either a bank debit card or a credit card. Before any transaction can be completed, consumers must be validated using a PIN. Click here to know the Bills Receivable Report in Tally.
A chip is found on many cards, and it transmits data from the card to the machine. These function in the same way that a barcode scanned by a code reader does.