features of an ATM

The ATM’s full form is Automated Teller Machine. It is an electronic machine that allows customers to manage their bank account transactions. ATM meaning is any person with a bank account and through this ATM, can check their balances, withdraw money, deposit money, purchase stamps, etc. They need to have debit cards or credit cards for using these services.

In London, in 1967 ATMs were used for the first time and after all these years you can find them being used nationwide. The automated Teller Machine is very convenient as it allows people to perform various functions and transactions like withdrawing and depositing money, payment of bills, and transfer of money. Automated teller machines can be off-premise as well as on-premise. On-premise ATMs are located in the respective financial institution and are operated by them. With on-premise ATMs, the customers enjoy choice, availability, and convenience. The off-premise ATMs are located in places like airports, convenience stores, shopping places, etc. For withdrawing cash from an ATM located or operated outside the bank that is an off-premise ATM some fees are charged. To avoid the fees use the on-premise ATM that the bank operates directly. In several parts of the world, ATMs are called cash machines or Automated Bank Machines. 

Features of an Automated Teller Machine 

From the time this machine came into existence, its functions are updated accordingly. It has become a safe and trusted machine to use. Below are some features of an ATM: 

• The modern ATMs are very versatile. It not only allows you to withdraw cash but it also allows depositing money, transferring money, payment of several bills, generation of statements and many more.
• ATMs are very user-friendly machines. Anyone can use it whether they are educated or are a specially-abled person. It has become easy with the introduction of the biometric identification scanner. 
• ATMs are multilingual devices. India is a country with different types of people speaking different languages. So, the machine being multilingual is very helpful as everybody can use it in their own preferred language.
• ATMs have now started providing receipts via email, which eliminates the use of paper. 

How does an Automated Teller Machine work?

The ATM is a data terminal that has two input devices and four output devices. These input and output devices are connected to the processor. The processor is called the heart of the automated teller machine. Every automated teller machine is based on a centralized database system. The host processor communicates with the ISP (Internet service provider) which is the entrance of all the ATM networks of the cardholder. With the help of a card reader and a keypad, the cardholder gives the required information if he wants to complete an ATM transaction. This information is forwarded by the ATM to the host processor who further places the transaction request in the user’s respective bank. The host processor takes out the cash from the user’s account as per the request. After the transfer of cash from the user’s account to the host processor account an approval code is sent by the processor to the ATM and its authorised machine to dispense the cash. This is the ATMs working. It makes the process easier and more secure for the account holders. 

Operation of an Automated Teller Machine 

It is very easy to use an ATM. The steps are given below:

1. Firstly you need to visit an ATM centre which is available near your respective place.
2. Then place your ATM card of yours within the machine
3. As ATM is multilingual, it will ask about your preferred language. You need to choose the language among the options available on the ATM monitor. You can choose your local languages like Hindi, English or any other.
4. Then you need to select the type of transaction you want to do. Like depositing money, withdrawing money, transfer of money, payment of several bills, etc. 
5. Then you are required to choose the type of account you have. Like savings bank accounts or current accounts.
6. Then you will be asked to enter a four-digit ATM PIN. After entering the PIN you need to enter the cash amount you want to withdraw from your account.
7. Take the withdrawn and the receipt of the transaction 
8. If you want to do any further transactions, you can perform them by selecting the various options available on the ATM monitor.

Conclusion

Hope this article will help to get all the information related to the Automated Teller Machine like the meaning, its features, ATM’s full form and ATMs working. It is a helpful device for an individual’s bank transactions. Everybody should be aware of this device to enjoy its benefits. For using the automated teller machine you need to have a debit card. This card allows you to withdraw or deposit money and perform any type of function.