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ATM Abbreviation

An ATM (Automated Teller Machine) is an outlet of electronic banking that permits users to complete common transactions without taking the help of a branch teller or representative. With a debit card or credit card, anyone can access the cash in most of the ATMs.

ATMs are very convenient and they permit users to perform self-service transactions quickly such as transfer money between accounts, bill payments, cash withdrawals, and deposits. Commonly, fees are charged for money withdrawals by the ATM operator, and by the bank in which our account is registered. All or some of these fees could be ignored by directly withdrawing the money from the bank.

Note: ATMs are called as cash machines or automated back machines (ABM) in different locations of the world.

Benefits of ATM

The first ATM was shown in 1967 in London at the Barclay's Bank branch. Although, in Japan, there are cash dispenser reports that were in use in the middle of the 1960s. Various interbank communications networks that permitted a user to use a single card of a bank in another ATM of a bank came later in the 1970s.

ATMs had developed across the globe and they are securing an existence in all the major countries. Now, they are detected even in small island nations like the United States of Micronesia and Kiribati.

Now, there are 3.5 million+ ATMs available in use around the globe.

Key Benefits

Let's discuss some benefits.

  • A few are general cash dispensers during others that permit a range of transactions like bill payments, balance transfers, and check deposits.
  • ATMs are the outlets of electronic banking that permit users to fulfill their transactions without need to go to their respective bank branches.

Types of Automated Teller Machines

There are two kinds of ATMs available, called basic and complex units. The basic units permit users to get updates on account equities and withdraw cash. The complex machines allow deposits, offer line-to-credit transfers and payments, and authenticate account information.

A customer should be the holder of an account at the bank which operates a particular machine for accessing the advanced benefits of these complex units.

Analysts anticipate automated teller machines will become more famous and estimate an expansion in the ATM withdrawal numbers. The future ATMs are expected to be complete service terminals in addition to or rather than traditional bank tellers.

However, the design of all ATMs is distinct. Each unit includes similar parts:

ATM Abbreviation

1. Card reader

Card readers are used to reading the chip. This chip is placed on the front side of the card or some magnetic stripes on the opposite side of the card.

2. Cash dispenser

Many bills are dispensed by a slot inside the machine. This slot is linked to the safe at the machine's bottom area.

3. Keypad

This part is used by the users of the machines to input data or information, including the transaction amount, transaction type, and personal identification number (also known as a PIN).

4. Printer

Customers can claim receipts that are printed here if required. The receipt can record the account balance, the amount, and the transaction type.

5. Screen

The issues of an ATM prompt that guide the user from the process of running the transaction. Also, information is transmitted over the screen like account balances and information.

Note: Now, full-service machines often have some slots to deposit paper checks.

Modern ATM features

ATMs have been varying over time. The technology of the machine is becoming sophisticated to facilitate a great experience for the consumers. It makes transactions secure and safe. A few of the wide changes are as follows:

ATM Abbreviation
  • No language barrier: Our country has infinite languages and use of any single language to operate ATMs is becoming difficult for many consumers. Modern ATMs are designed with more than one language and consumers can also select the language of her/his choice. It will make it easy for everyone to use the ATM.
  • Easy to use: The latest ATMs are developed in a manner that will be very easy for everyone to use the machine including specially-abled people, illiterate individuals. Technology such as biometric identification scanners can make it easy-to-use for everyone.
  • Multipurpose Nature: Modern ATMs are offering the facilities of the cash deposit, producing mini statements, bill payments, and fund transfer. These are only some services, but there are several other practical services offered by the banks.

ATM card use Benefits

The benefits of using ATM card are listed below:

  • ATMs are easily located at more than one location. Customers can visit any bank's ATM for performing any kind of transaction.
  • It supports to withdraw cash in a way of minutes and hence saves time.
  • No documentation is needed for the ATM card and the procedure to get the ATM card is very easy and hassle-free. Almost every bank facilitates ATM cards when we open an account in the bank.
  • It supports to get the transaction details, mini statements, and total balance.
  • A few ATMs offer the facility of fund transfer and depositing cash.
  • It supports paying service bills and other payments and bills.
  • The facility is accessible 365 days a year and 24*7.
  • ATMs are secure and safe because the ATM use is restricted to the individual who knows their PIN. Hence, if the users keep their PIN a secret, no one can use the ATM card other than the user.
  • ATM is self-service and hence reduces the call-of-duty of the bank members.
  • ATMs are reducing the requirement to carry cash because individuals can take out their cash at the ATM anywhere in the world.

Special Considerations of ATM

Various ATMs are placed in areas such as restaurants, casinos, gas stations, railway and bus stations, airports, convenience stores, grocery stores, shopping centers, and other places.
Most of the ATMs are detected in banks.

These ATMs are multi-functional, but other ATMs outside tend to be entirely or primarily created for cash withdrawals. Mainly, ATMs require users for using plastic cards to complete their transactions.

These plastic cards can either a bank credit card or a debit card. Users need to specify the PIN before completing a transaction.

Several cards come along with a chip. This chip transmits information from the card to that machine. It works similarly as the code reader scans the bar code.

Fees of ATM

The holders of an account can use the ATM of the bank with no charges. On the other hand, accessing cash from a unit purchased by any competing bank incurs a fee usually.
A few banks will refund the fee to their consumers. Especially, when there are no comparable ATMs available in that location.

Ownership of ATM

In several cases, credit and bank unions own the ATMs. However, businesses and individuals may also lease or buy ATMs over their own or from the ATM franchise. The benefit model is dependent on some charging fees to the users of the machine if small businesses or individuals like gas stations and restaurants own ATMs.

Also, banks own ATMs along with intent. They apply an ATM convenience for attracting clients. ATMs overcome a few of the burdens of user service through bank tellers and saving money from banks in payroll costs.

ATM Disadvantages

There are disadvantages too. Let's discuss some of the disadvantages.

ATM Abbreviation
  • Fraud: Criminals may fit small cameras and skimming devices inside the ATMs. These devices can record personal identification numbers and account details which the criminals use for withdrawing money through those accounts.
  • Fees: Machine and bank owners draw a great revenue source through ATM fees. Usually, cardholders can withdraw money for free through ATMs owned via bank. However, a user must pay for using machines owned by any other companies.
  • Theft Risk: We are walking to a secured place watched by a lifeguard or the camera. Those components encourage criminals to keep the distance from any bank. We will not find such an issue with the ATM. Also, it takes time for taking out a card, inserting it into the machine, authenticates our account, and then withdraws our cash. The time is enough for a criminal to attack.
  • Non-Reachable in some areas: Various banks are positioned in some rural areas. These areas have a few computerized branches and mainly depend on manpower for various tasks. There are only a few ATMs installed in these rural places which don't operate properly as well. Therefore, the services of ATMs are not available in these rural locations properly.
  • Cash Withdrawal Limitation: Using ATM, the bank imposes constraints on limits for withdrawing cash. There are some restrictions on the money amount or the number of free transactions that could be withdrawn per each transaction. Most of the banks set the amount of withdrawal limit for the customers, where the cash withdrawal limit is around 25000 at a time.

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