Automated Teller Machine
From Halbeeg, the open encyclopedia · Af-Soomaali
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An automated teller machine (ATM) is a computer-operated device that allows bank customers to withdraw cash, make deposits, check account balances, or conduct transfers without being present before a bank employee. Users access the machine using a magnetic stripe or chip card and a personal identification number (PIN) to verify their identity.
ATMs are typically located in bank branches, markets, airport terminals, and public streets. They are connected to a networked system that verifies a customer's account in real time. When the bank that issued the card and the bank operating the machine are different, intermediary networks process the customer's transaction, which can sometimes result in added fees.
Structure and operation
An ATM consists of a visible component—a screen, buttons or touchscreen, card reader, secure keypad, and a metal vault containing cash—and software that serves the customer. When the PIN is entered, the keypad immediately converts the data to encrypted text, a number that is not stored in the machine. Cash storage is divided into cassettes, each holding a specific denomination; the machine counts the bills and rejects those that are worn or stuck together.
Brief history
The first cash-dispensing machines appeared in the late 1960s, with Britain and other countries experimenting with different systems using punch cards or magnetic cards. The expansion of communications networks and the adoption of magnetic card technology enabled ATMs to be widely networked, allowing customers to withdraw cash from banks other than their own.
Security and risks
Major risks include skimming—the installation of hidden devices that copy card data—and small cameras that capture PINs. Another threat is malicious software installed on the machine to dispense cash. Banks use various countermeasures, including EMV chip technology, card reader protection, surveillance cameras, daily cash limits, and SMS alerts to customers.
Changing service patterns
The growth of mobile money and electronic payments has reduced cash usage in many places, leading some banks to reduce their ATM fleets. In other areas, particularly where branch banking is limited, ATMs remain an essential tool for obtaining cash. Modern machines also provide bill payment, prepaid card loading, and account statement printing.