Here, we will learn what is ATM, how it works and what is its Full Form. So, let’s start to read to understand it. In today’s time, you use ATM in making the financial transactions of the bank. But, do you know what the full form of ATM is? ATM is an abbreviation of Automated Teller Machine.
The Automated Teller Machine is an electro-mechanical machine which allows the clients and customers of a bank to complete their financial transactions without the use of cashier, teller, and branch representative.
John Shepherd-Barron was a British inventor who invented the Automated Teller Machine which is a first cash machine.
In the year 1969, the first ATM machine was installed at a branch of Barclay’s bank in LONDON. In the year 1987, the first ATM machine was installed by HSBC in INDIA.
Most ATM machines are used for only withdrawing cash. But, some Automated Teller Machines are used for different purposes. Customers use the ATM machines for transferring funds, withdrawing money, depositing money, and other enquiries related to our account.
These machines make the various process of bank very easy. We have no need to go to our banks for doing the processes which can be done by ATM machine.
Let’s discuss about the parts (Input and output devices) of Automated Teller Machine (ATM).
Following are the two input devices of Automated Teller Machine:
This input device of Automated Teller Machine reads the account number and PIN which is stored on the magnetic strip available on the back-side of debit and credit card. After reading the details of the customer, the machine passes the details to the server. Then, the server allows the cash dispenser to dispense the cash based on the customer details.
The keypad device of Automated Teller Machine allows the users to enter the PIN number for authentication. It also allows you to enter the amount of money for depositing and withdrawing.
Following are the four output devices of Automated Teller Machine:
This output device is available in the ATM machines which produce sound when the user do their transaction on a machine.
This output device provides a receipt printed by ATM. The receipt tells the information about the withdraw and deposit amount, balance, and the date and time of the transaction.
Display screen is an output device of ATM which shows the account related information of customer whose plastic card is swiped or inserted in the ATM.
It also displays the transaction steps one by one to the customer until the transaction is successfully completed.
Some Automated Teller Machines provides a touch screen.
Cash Dispenser is the essential output device of ATM. This device dispense the cash which is entered by the ATM user.
When you inserted your plastic card (debit/credit card) into the card reader of Automated Teller Machine, then the working of the machine begins.
There is a magnetic strip on your debit and credit cards which contains your account number and PIN for security. Some machines allow only swapping of cards and some restrict you to drop your cards in machines until the transaction is completed.
When the card is successfully swiped or inserted then the machines asks for your PIN. When the authentication process is valid then the machine allows you to do the bank transactions.