What is the full form of ATM?
The ATM full form is “Automated Teller Machine“.
What Is an Automated Teller Machine (ATM)?
An Automated Teller Machine (ATM) or cash machine is a specialized machine or computer that distributes cash or performs banking services when an account holder inserts a bank card.
ATM makes it convenient to manage a bank account holder’s funds. It helps a person check account balances, withdraw and deposit money, and print account statements or transactions.
Anybody with a debit card or credit card can access cash at ATMs.
ATM has many different names. For example, In the UK and New Zealand, users called it Cashpoint or Cash Machine. In Australia and Canada, people called it Money Machine.
History of the Invention of ATMs
John Shepherd Barron (Scottish) created ATM.
In 1965, Barron arrived in a bank to withdraw money One day, but the bank closed due to a one-minute delay.
After this incident, John Shepherd Barron thought, why not make a machine whereby anyone can withdraw money 24 hours. John Shepherd Barron invented the first ATM within about two years with this thought.
First Use of ATMs
ATM first appeared at a branch of Barclay Bank in London in 1967.
However, there are records of cash distribution in Japan in the mid-1960s. In the 1970s, the interbank communications network allowed a consumer to use a bank card at another bank’s ATM card.
America first introduced ATM on September 2, 1969, at Chemical Bank in Rockville Centre, New York. By the 1980s, Automated Teller Machine (ATM) had become widely popular and handled many functions.
Now-a-days, ATMs are obligatory to most people like smartphones and Email.
Today, there are more than 4 million ATMs in use across the world.
Types of Automated Teller Machine (ATMs)
There are different types of ATMs across the world, such as:
- On-site ATM – This presents and works within the bank’s premises.
- Off-site ATM – This ATM controls and operates outside the bank premises.
- Worksite ATM – This ATM is situated within the premises of a company and is generally intended only for that company’s employees.
- Cash Dispenser – It allows only cash withdrawals, balance inquiries, and mini statements.
- Mobile ATM – Mobile ATMs are those ATMs that move in areas for the users. COVID 19 has led to the flow in the number of Mobile ATMs.
- White Label ATM – Non-Banking financial companies provide white Label ATMs.
- Green Label ATM – Green ATMs are provided for Agricultural Transaction.
- Orange Label ATM – Orange Label ATMs are provided for share transactions.
- Yellow Label ATM – These ATMs are provided for online purchase.
- Pink label ATM – ATMs which are provided for women.
- Brown label ATM – In Brown label ATMs, a service provider owns the hardware and the ATM lease. However, the sponsor bank offers cash management and connectivity to banking networks.
Facts about Automated Teller Machine (ATMs)
- The first use of the term ‘automated teller machine’ dates back to 1967.
PIN of ATM – John Shepherd Barron wanted to keep 6 digits ATM PIN, but his wife Carolyn did not remember six (6) digits. Therefore, he prepared four (4) digits ATM.
- Japan installed the first “cash-dispenser” in 1966. However, Japan connected it to a credit account, not the user’s bank account, and it was not an actual ATM.
- Barclays chose its Enfield, London, branch for the first installation.
- A significant factor in the ATM development was the British clearing banks’ agreement to union demands for an end Saturday banking hours.
- The first ATM dispensed paper vouchers impregnated with Carbon-14.
- As mentioned above, vouchers for the ATM had to be purchased in advance from a teller. Customers were limited to one withdrawal per day of one 10 pound note (equivalent to 126.9 pounds or $161.46 today).
- In July 1967, the first ATM to use a four-digit PIN was installed at Westminster Bank July 1967. A plastic card with perforated holes was inserted into the machine, and then the user punched in a PIN. If everything matched up, cash was dispensed.
- Sweden installed the second ATM in the world just a few weeks after installing Barclays ATM.
- If someone steals the entire ATM, then he can’t go far enough. Because in this machine a chip has installed which can be tracked from GPS.
Ink in the ATM
A blue ink bottle is installed inside the ATM, where notes are placed. If someone tries forcefully withdrawal a note or breaks the machine, then ink spreads on the notes.
- According to one anecdote, in the spring of 1968, a thief in Sweden figured out the algorithm that associated card numbers with PINs and then traveled about the country emptying ATMs.
- Britain’s Midland Bank (today HSBC) was the first to introduce the magnetic stripe card for ATM access (in late 1969.)
- U.S. patents for magnetic stripe card use at ATMs were not granted until 1972 (U.S. Patent No. 3,685,890) and 1973 (U.S. Patent 3,761,682).
- The U.S. ventured into the banking automation market in 1962 with the Bankograph by Simjian. However, the machine only took envelope deposits and did not dispense cash. The concept never really took off.
- Docutel filed the patent application for the first freestanding ATM in 1971.
- By 1971, only 11 U.S. banks could claims an ATM; by 1994, banks in the U.S. owned and operated beyond 100,000 ATMs.
- In 1975, Iowa-based Dahl’s Foods became the first grocery for installing Automated Teller machine (ATMs).
- In 1977, American Standard sold off its Mosler ATM subsidiary, convinced that the idea would never catch on because people like dealing with tellers.
- The first 4K core memory board was the size of a computer’s current-day motherboards.
State Bank of India at Kochi (Kerala) installed the first floating ATM. Kerala Shipping & Inland Navigation Corporation (KSINC) Company supervised this ATM.
- By the early 2000s, half of the world’s ATMs were located away from bank branches.
- By 1986, the U.S. had more than 200 different national ATM networks.
- In 1994, Egypt’s Banque du Caire became the first ATM organizer to use cellphone networks to connect to a central computer; The U.S.A didn’t use wireless networks until 1998.
- ATM operators in the U.S. law banned from surcharging for ATM transactions until 1996; but by 2003, more than 88 percent of ATMs in the USA, charged fees for off-us transactions.
- In 1997, Canadian Imperial Bank of Commerce launched its first web-enabled ATM.
- The U.S connected ninety-nine percent of ATMs to shared nationwide networks within 1998. In 1984, NCR Corporatio was considered to have launched the first full-function machine allowing the payments, offering transfers, detailed statement printing, and envelope deposits).
- Countries like Afghanistan, Laos; Iraq; Vietnam; Kazakhstan, and Guyana did not have ATMs until 2004 or later.
- In 2015, Afghanistan had 1 ATM (.096) per 100,000 adults; Laos had 26.16; Iraq had 1.87; Vietnam had 24.01; Kazakhstan had 71.4; and Guyana had 16.6.
ATM without an Account
ATM can be used without a bank account in European country Romania.
- In 2014, Somalia installed its very first ATM in a tourist hotel in the capital of Mogadishu.
- The world’s highest ATM sits (15,397 feet above sea level) in Khunjerab Pass on the Pakistan-China border.
- The world’s most distant ATM location is McMurdo Station in Antarctica.
- According to the 2017 ATM Future Trends, In the U.S., nearly two-thirds or 63 percent of account holders visit an ATM per month. In the U.K. the figure rises to 90 percent.
- The most favorite ATM service among U.S. and U.K. consumers is multi denomination cash dispensing; the second priority for Americans is real-time transactions, but for Brits, it’s bill payment.
- A slightly larger number of U.S. consumers prefer to visit an ATM (43 percent) rather than a branch (38 percent); preferences in the U.K. are more sharply divided, at 63 percent ATM preference to 20 percent branch preference.
- In 2015, non-prepaid debit and general-purpose prepaid cards were used in 5.8 billion ATM withdrawals in the U.S., according to the Federal Reserve Bank.
- The average value of ATM cash withdrawals rose from $118 to $122 between 2012 and 2015, continuing an upward trend in average value since 2003, the Fed says.
- Financial institutions own Forty-eight (48) percent of U.S. ATMs.
- Independent deployers own Fifty-two (52) percent of U.S. ATMs.
- Average number of transactions per ATM per month is 800.
- Average ATM withdrawal amount is $60.
Percentage of Use of ATMs
- Increase in sales for a store with an installed ATM – 20 percent.
- Increase in spending by ATM users compared with nonusers – 23 percent.
- Amount of money dispensed at bars and clubs that is spent on-premises – 75 percent.
- Average number of times a person visits an ATM per month- 7.4
- In 2015, U.S. ATM withdrawals totaled $691 billion, which is up 4 percent from the previous year, according to RBR.
- In 2013, China overtook the U.S. in terms of largest installed base of ATMs, adding 105,000 units in one year to reach a total of 520,000.
- According to the World Bank, the U.S. boasts 144 ATMs per 100,000 adults, which are nearly double the China’s ratio of 76.7 ATMs per 100,000 adults.
- Worldwide average of ATMs per 100,000 adults – 45
- Number of new ATMs installed worldwide each day – 280
- Installed base of ATMs in the U.S.: approximately 425,000
- Installed base of ATMs worldwide: about 3 million.
- Estimated installed base of ATMs worldwide in 2021, according to RBR: 4 million.
ATM Fees / Charges
- In the U.S.A, the average charge for a single ATM withdrawal is about $4.50. But this charge generally varies from state to state.
- The highest average fee in Atlanta is about $5.15, where the lowest average cost in Seattle is about $4.21
Benefits of ATM Card Use
The benefits of ATM card are as follows:
- The most common features of ATMs are appropriately located at many locations. As a result, consumers can visit the ATM of any bank to do any transaction.
- It saves time by withdrawing the cash in a minute.
- No document is needed to get an ATM card. So, it is hassle-free, and all banks provide ATM cards at the time of account opening.
- ATM helps to get the account transactions, total balance, and statement.
- Some Bank’s ATMs also deliver the facility of depositing cash and fund transfer in a booth.
- Helps in paying utility bills and payments.
- The facility is available 24*7 and 365 days a year.
- ATM is safe and secure as ATM is restricted only to the person who knows the PIN.
- ATMs are self-service and thus reduce the workload of the Bank staff.
- ATM reduces the burden of carrying cash as the account holder can withdraw money at any amount and any ATMs.
How ATM Machine Works?
The use of an ATM card in an ATM cash machine is straightforward. You can use the following steps to use ATM:
- Step 1: At first, visit the nearest ATM booth and insert your ATM card in the ATM.
- Step 2: Select the Transaction type from transactions such as withdrawal, deposit, cash transfer, etc.
- Step 3: Select the Account type, like current, saving, and salary accounts.
- Step 4: Enter the withdrawal amount.
- Step 5: Enter your secret ATM PIN.
- Step 6: Finally, collect your cash
- Step 7: Don’t forget to collect a printed receipt.
What are the features of ATM?
The features of the automated teller machine include the following.
- Transfer funds between linked bank accounts.
- Receive account balance.
- Prints recent transactions list.
- Deposit your cash.
- Prepaid mobile recharge.
- Change your pin.
- Bill payments.
- Cash withdrawal.
FAQs- Frequently Asked Questions
01. What is the ATM PIN?
PIN means Personal Identification Number. A PIN is a 4-digit number that allows accessing your account information and performing other activities using an ATM.
02. How can I generate my ATM PIN?
You can generate your ATM PIN by visiting the ATM booth, sending an SMS to the bank/customer care, calling customer care, or internet banking.
03. How can I change my ATM PIN online?
Customers can change ATM PIN in various ways. They can change the PIN by visiting the nearest ATM booth, calling or sending SMS to customer care, and internet banking.
04. Can I generate an ATM PIN online?
Yes, customers can change the ATM PIN online by internet banking.
05. How can I generate my ATM PIN by mobile?
You can create the PIN using the mobile by either sending the SMS or calling customer care. You can also use your internet banking or mobile app to generate an ATM PIN.
06. Is an ATM a bank?
An automated teller machine (ATM) is an electronic banking outlet or channel that helps customers complete basic transactions without a branch representative.
07. Is an ATM a bank?
ATM is an embedded system and computerized machine used in banking. A strong network is present between the bank computer and ATM through a host computer. Bank computers verify all the required data with the bank computer, and all transactions are stored in it.
08. Can you deposit cash into ATM?
You can deposit cash at many ATMs, but not all of them. There’s no specific rule about ATM cash deposits—it’s at the discretion of the bank. But many institutions allow cash deposits at a branch or ATM booth.
09. Are There Monthly Charges Or Hidden Fees For The ATM?
No monthly fees, no hidden fees, no transaction fees.
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