ATM Machines
An automated teller machine (ATM) is a computerized system used to deposit and withdraw money without the need for another person, such as a teller. Most banks provide this service to their customers as a way to deposit or withdraw money into their own individual checking and savings account when the bank is not open. However, now ATM machines are located everywhere – grocery stores, movie theaters and restaurants. This allows someone to gain access to cash without even going to the bank.
An ATM machine is basically a large computer that works like a vending machine for money. In order to provide all the services it does, it has many different parts. The computer inside has an interface and keypad. This keypad is how the customer provides information regarding PIN numbers and amounts to the computer. It also includes a magnetic card reader to read information from each individual ATM card. This information includes the person’s name, bank account information including routing and account numbers. When a person inserts their ATM card, the machines reads it and returns it after the transaction is complete. If you forget to take your ATM card out of the machine, it will retract it so that the next person cannot have access to it.
Inside the ATM is a cash drawer that has to be refilled and counted by an employee each day. For instance, if the machine runs out of $10 bills it will simply not allow any more $10 transactions so the bank wants to keep it fully functional by checking the bills and balancing the machine at least once a day. There is also a printer that will give the customer a receipt of their transaction, usually on thermal paper. This receipt will include balance information, fees access and details of the specific transaction. Some ATM’s also provide envelopes for your cash and/or receipt. Many ATM companies are now installing security cameras to have a record of the person conducting each transaction. This also helps prevent against theft of the machine.
In order to access accounts, the computers inside ATM machines are connected to a complex interbank network. This network will allow customers from many different banks to access accounts through this machine even if it’s not at their bank. ATM’s must gain permission from a person’s bank through this network to allow them to withdraw money from their account. When the transaction is complete the bank then relays the information back to the customers bank so they can reflect the appropriate addition or subtraction of money to the correct account.
ATM machines located at a branch of your bank are usually free to customers, however independent ATM’s must charge a fee to customers to cover costs of operations, employee labor to maintain the machine and fees to use the interbank network. These fees can range from .75 cents to 2 dollars! Most ATM’s will give you an opportunity to cancel the transaction if you don’t agree with the fee amount.