Escolar Documentos
Profissional Documentos
Cultura Documentos
Introduction ATM Machine History & Invention How Do ATMs Work? Parts of the Machine ATM Security Benefits
ACKNOWLEDGEMENT
I am really thankful to all those people, who have helped me in my project some way or the other. Rakesh Mishra is responsible to bring out the text in its present form.. Lastly, the blessing of my parents has helped me to grasp the challenging subject mater.
Introduction
Automated teller machines can offer significant benefits to both banks and their depositors. The machines can enable depositors to withdraw cash at more convenient times and places than during banking hours at branches. At the same time, by automating services that were previously completed manually, ATMs can reduce the costs of servicing some depositor demands. These potential benefits are multiplied when banks share their ATMs, allowing depositors of other banks to access their accounts through a banks ATM. The decision by banks to share their ATMs is partially determined by the terms under which the sharing would occur. In particular, there are several prices that can be charged to or collected by the three main parties involved in an ATM transaction, the cardholder, the cardholders bank, and the ATM owner. How, and by whom, these prices are set affects a number of economic decisions, including the number of machines that banks and non-banks choose to deploy, deposit market interest rates, distances traveled by depositors and non-depositors that wish to withdraw cash, profits of banks, and welfare of bank customers.
ATM machine
(Automatic Teller Machine machine) A banking terminal that accepts deposits and dispenses cash. ATMs are activated by inserting a cash or credit card that contains the user's account number and PIN on a magnetic stripe. The ATM calls up the bank's computers to verify the balance, dispenses the cash and then transmits a completed transaction notice. The word "machine" in the term "ATM machine" is certainly redundant, but widely used.
Automated teller machine (ATM), device used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. The strip contains an identification code that is transmitted to the bank's central computer by modem. To prevent unauthorized transactions, a personal identification number (PIN) must also be entered by the user using a keypad. The computer then permits the ATM to complete the transaction; most machines can dispense cash, accept deposits, transfer funds, and provide information on account balances. Banks have formed cooperative, nationwide networks so that a customer of one bank can use an ATM of another for cash access; by 1997 there were more than 160,000 ATMs across the United States. Some ATMs will also accept credit cards for cash advances. The first ATM was installed in 1969 by Chemical Bank at its branch in Rockville Centre, N.Y. A customer using a coded card was dispensed a package containing a set sum of money.
Most host processors can support either leased-line or dialup machines. 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. The host processor may be owned by a bank or financial institution, or it may be owned by an independent service provider. Bank-owned processors normally support only bank-owned machines, whereas the independent processors support merchant-owned machines.
Receipt printer - The receipt printer provides 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.
Sensing Bills
The cash-dispensing mechanism has an electric eye that counts each bill as it exits the dispenser. The bill count and all of the information pertaining to a particular transaction is recorded in a journal. The journal information is printed out periodically and a hard copy is maintained by the machine owner for two years. Whenever a cardholder has a dispute about a transaction, he or she can ask for a journal printout showing the transaction, and then contact the host processor. If no one is available to provide the journal printout, the cardholder needs to notify the bank or institution that issued the card and fill out a form that will be faxed to the host processor. It is the host processor's responsibility to resolve the dispute. Besides the electric eye that counts each bill, the cash-dispensing mechanism also has a sensor that evaluates the thickness of each bill. If two bills are stuck together, then instead of being dispensed to the cardholder they are diverted to a reject bin. The same thing happens with a bill
ATM Security
ATMs keep your personal identification number (PIN) and other information safe by using encryption software such as Triple DES (Data Encryption Standard). But there are lots of things that you can do to protect your information and your money at an ATM. Many banks recommend that you select your own PIN. Visa offers the following PIN tips: Don't write down your PIN. If you must write it down, do not store it in your wallet or purse. Make your PIN a series of letters or numbers that you can easily remember, but that cannot easily be associated with you personally. Avoid using birth dates, initials, house numbers or your phone number.
strongly recommended that they pull the money out of the machine when they close, just like they do with their cash registers, and leave the door to the security compartment wide open like they do with an empty cash-register drawer. This makes it obvious to any would-be thief that this is not payday.
Some Facts about ATM Machines: ATM customers spend an average of 20 to 25% more than non-ATM customers. 60% of Americans ages 25-34 and 51% ages 25-49 use ATM machines 8 times a month, withdrawing an average of $55.00 per transaction. In 1994, there were 8.3 billion ATM transactions in the United States. Bank ATMs average 6,400 transactions per month. The most popular day for ATM usage is Friday. Among people that use both credit and debit cards, debit cards are used most often. 5.9 times per month versus 5.1 times per month. Independent studies show that cash retention among large retailers is 30-33%. Retention among smaller retailers is 35-40%. Night clubs are seeing 70-80% of the dispensed cash staying at the club. Retail location ATM machines that dispense $20.00 bills increase store sales by over
8%.
Benefits
Consumers today see ATM'S as a necessity not just convenience.Cash dispensing ATM'S have become the fastest growing and must requested service.Intially banks operated expensive lease line ATM'S with the Introduction of dial up ATM'S owners became aware of the greater benefits of having one site.
Conclusion
From my point of view ATM is one of the gift from the inventor to humanity.