SEMINAR REPORT ON ATM

Submitted By: MAYANK GUPTA Roll No. 2105198 B.TECH (8TH Sem.)

CONTENTS:INTRODUCTION NAMES HISTORY NETWORKING ATM CHARGES HARDWARE AND SOFTWARE RELIABILITY ATM CARD VS CREDIT CARD HOW ATM WORKS PARTS OF MACHINE SETTLEMENT FUNDS SECURITY TIPS FOR SAFE ATM USAGE NEW INNOVATIONS GLOSSARY

Introduction : AUTOMATIC TELLER MACHINE: An Automatic Teller Machine (ATM) is a machine permitting a Banks customers to make cash withdrawals and check their account at any time and without the need for a human teller. Many ATMs also allow people to deposit cash or cheques and transfer money between their bank accounts.

History:-

The world's first ATM was installed in Enfield Town in the London Borough of Enfield, London on June 27, 1967 by Barclays Bank. In modern ATMs, customers authenticate themselves by using a plastic card with a magnetic stripe, which encodes the customer's account number, and by entering a numeric passcode called a PIN (personal identification number), which in some cases may be changed using the machine. Typically, if the number is entered incorrectly several times in a row, most ATMs will retain the card as a security precaution to prevent an unauthorised user from working out the PIN by pure guesswork.

Networking:Most ATMs are connected to interbank networks, enabling people to withdraw money from machines not belonging to the bank where they have their account. (Deposits can only be made at machines belonging to the bank that has the account.) This is a convenience, especially for people who are travelling: it is possible to make withdrawals in places where one's bank has no branches, and even to withdraw local currency in a foreign country, often at a better exchange rate than would be available by changing cash.

ATM Charges:Many banks in the USA charge fees for the use of their ATMs by nondepositors, for withdrawals over the network by their own customers, or both; however, in the UK strong public reaction soon persuaded banks not to do this. There is also now a flourishing business in the United States of placing ATMs in grocery stores, malls, and other locations other than banks: some of these machines have signs advertising "low" fees.

Hardware and Software:ATMs contain secure cryptoprocessors, generally within an IBM PC compatible host computer in a secure enclosure. The security of the machine relies mostly on the integrity of the secure cryptoprocessor: the host software often runs on a commodity operating system.

ATM CARD VS CREDIT CARD:The card you use at the ATM is known as a debit card. When debit cards first appeared it was easy to tell them apart from credit cards. Debit cards didn't have a credit card company logo on them; instead, they usually just had your bank name, your account number and your name. Today debit cards look exactly like credit cards even carrying the same logos. Both types of cards can be swiped at the checkout counter , used to make purchases on the internet, or to pay for the fill-up at the gas pump. When you use your debit card to make a purchase, it's just like using cash. The account that is attached to your debit card, in most cases your checking account, is automatically debited when you use your debit card. The cost of your purchase is deducted from the funds you have in that account. On the other hand, when you use your credit card to make a purchase you are using someone's else's money, specifically the issuer of the credit card, usually a banking institution.

How Do ATMs Work?

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).

Parts of the Machine:You're probably one of the millions who has used an ATM. As you know, an ATM has two input devices: 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. 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.

And an ATM has four 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. Leasedline 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.

Settlement Funds:-

Settlement Funds:-

ATM Security:Early ATM security focused on making the ATMs invulnerable to physical attack; they were effectively safes with dispenser mechanisms. A number of attacks on ATMs resulted, with thieves attempting to steal entire ATMs by ram-raiding. Modern ATM physical security concentrates on denying the use of the money inside the machine to a thief, by means of techniques such as dye markers and smoke canisters. This change in emphasis has meant that ATMs are now frequently found free-standing in places like shops, rather than mounted into walls. Another trend in ATM security leverages the existing security of a retail establishment. In this scenario, the fortified cash dispenser is replaced with nothing more than a paper-tape printer. The customer requests a withdrawal from the machine, which dispenses no money, but merely prints a receipt. The customer then takes this receipt to a nearby sales clerk, who then exchanges it for cash from the till.

New Innovations:Several companies are advertising ATMs for the blind. These machines would be located at kiosks rather than bank drive-thrus. For several years, the keypads at ATMs were equipped with braille for the blind or visually impaired. New innovations in this technology will include machines that verbally prompt the customers for their card, their PIN and the type of transaction they would like to make.

GLOSSARY:Secure Cryptoprocessor : A secure cryptoprocessor is a dedicated computer for carrying out cryptographic operations,embedded in a packaging with multiple physical security measures,which give it a degree of tamper resistance. The purpose of secure cryptoprocessor is to act as a keystone of a security subsystem,eliminating the need to protect the rest of the sub-system with physical security measures. Modem : The word "modem", a portmanteau word constructed from "modulator" and "demodulator", refers to a device that modulates an analog "carrier" signal (such as sound), to encode digital information, and that also demodulates such a carrier signal to decode the transmitted information. The goal is to produce a signal that can be transmitted easily and decoded to reproduce the original digital data. Primarily used to communicate via telephone lines, modems can be used over any means of transmitting analog signals, from driven diodes to radio.

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