ATM or Automated Teller Machine : How ATM Works

ATM or Automated Teller Machine is a complex technical device for cash withdrawal or deposit from banks.City Bank of New York introduced ATM first time in 1939. So ATM or Automated Teller Machine is now of Grandfather’s age – its 74 years has been passed since the first ATM was introduced. You never noticed this ATM machine carefully – you probably do not know where it has several cameras installed on it! So we will tell the tale of teller machine that is much seen and used but very less know by most of us.

Overview of ATM or Automated Teller Machine

Almost every bank customer can use their debit or credit card cash via a card reader via an interface to the ATM or Automated Teller Machine to pay on their purchases and obtain cash through this machine in many countries around the world. For cash withdrawals through ATM the customer puts a card issued by the bank, it can be debit card or credit card too, into the card reader of the machine and gives the identification number ( PIN ) through a keyboard. The ATM card reader includes an authorization process, which verifies the correctness of the secret code instantly through Internet connection with their Server and decide on the disbursement of money. New generation ATM or Automated Teller Machines also allows deposit of cash.

Parts of an ATM or Automated Teller Machine

• Isolated output slot for producing print copy of bills or other paper based media, this part of  ATM or Automated Teller Machine  is a modified type of Laser printer.
• Recycling module which allows the entry and withdrawal of banknotes.
• An ID card reader to read the ATM cards – debit cards or credit cards.
• An encrypting PIN pad (EPP) for detecting and processing of the PIN number as encrypted secret number.
• A touch screen or a monitor with 3×3 non-specific keys.

Other peripheral devices of an ATM or Automated Teller Machine includes camera on the body. The software configuration consists of an industry-standard operating system usually Microsoft Windows and rarely Linux, device drivers, a communication layer (like CEN / XFS and J / XF ) and an application that controls the ATM and the remote site server / host communications.

More on ATM or Automated Teller Machine

Due to the advances in hardware and software development the third generation ATM or Automated Teller Machines were a breakthrough for cross institutional operation and cross border acceptance. The development of ATM is still not completed today,  the third generation ATM or Automated Teller Machines were based on the features of the plastic card with a magnetic strip with uniform global standards and specifications.

Now the fourth generation ATM or Automated Teller Machines are on the market.  For ATM complaint MasterCard and Visa products, there can be a chip along with the magnetic trip.

The availability of ATMs is beneficial to all. Citibank emphasizes on pressing the cancel button on ATM machine’s keyboard after a withdrawal. Furthermore, before inserting the card, press 3-4 random keys on the ATM’s Keyboard and press cancel – this is a prevention measure to very simple ATM PIN code discovery cheat used by the criminals – the keys are smeared with oil based creams. As most of us uses one digit and other Zeros as withdraw amount from an ATM, it is easy to find out the PIN number on such already under attack ATM counters.

For commercial reasons, almost all ATM comes with Windows family OS installed. Windows as per with their reputation on consumer PC often hangs and crushes. To protect the customers the Server disconnects the particular ATM when it suspects any fraud. An manual override with authentication is needed by the ATM provider. The money that will be disposed to the customer of an ATM is feed through a secured Tray usually behind the ATM machine body. The ATM or Automated Teller Machine are not very strong, to provide security usually armed guards are kept just outside.