The document describes how ATM machines work by explaining the steps in an ATM transaction and identifying the main components of an ATM. It discusses how the ATM reads the magnetic strip on an ATM card to access account information. It then prompts the user for their PIN for authentication before allowing cash withdrawals, balance checks, or other transactions. Key components of the ATM include the card reader, keypad, screen, cash dispenser, and receipt printer.

2.  Reading infoN off The ATM card’s
magnetic strip
 Enter PIN and communication with
the Bank
 PIN Authentication
 Dispensing the cash
 security & device’s

6.  The ATM card has a magnetic
strip on its back
 It’s made of a combination of
plastic and magnetic powder
 The card when inserted into the ATM
machine is read with a similar device
that wrote it.

7.  Once The card is inserted, the
asks for the PIN.
 Verification.The ATM machine
connects to the bank’s computer
network through the internet.

8.  Once the PIN is authenticated,it
asks for the kind of Transcation
example. Balance inquiry or a
Transcation statement or cash
withdrawal.
Example of WithDrawal

9.  The Lower bottom corner
of the machine is the cash
dispensing sections.
 It has an Electric eye that counts
each bill as it exists the dispenser
mechanism.
Conti . . .

10.  If the customer asks,he gets
the receipt of the transaction.
 The ATM screen reflects the
balance after the Transaction and
the card is returned to the user at
the End of the process.

11. An ATM is simply a data terminal
with two input and four output
devices.
communicate through, a host processor. The
host processor is analogous to an Internet
service provider (ISP) in that it is the gateway
through which all the various ATM networks
become available to the cardholder (the
person wanting the cash).
ATM Device’s

12. Card reader - The card reader captures the
account information stored on the magnetic
stripe on the back of an ATMcard.
Keypad - The keypad lets the cardholder tell
the bank what kind of transaction is required
(cash withdrawal, balance inquiry, etc.)

13. Speaker - The speaker provides the cardholder
with Auditory feedback when a key is pressed.
Display screen - The display screen Prompts the
cardholder through each Step of the transaction
process.
Receipt printer - The receipt printer provides the
Cardholder with a paper receipt of the transaction
Cash dispenser - The heart of an ATM is the safe and
cash-dispensing mechanism. The entire bottom portion
of most small ATMs is a safe that contains the cash
Display screen - The display screen Prompts the
cardholder through each Step of the transaction
process.

14.  Dial-up ATMs connect to the host processor
through a normal phone line using a modem
and a toll-free number, or through an Internet
service provider using a local
 Most host processors can support either
leased-line or dial-up machines.
 Leased-line machines connect directly to the
Host processor through a four-wire, point-to
- point, dedicated telephone line.

15. ATM, Automated Teller
Machine
• Money moves
electronically from
user’s account to host
account to merchant’s
account.
• New innovations:
machines that verbally
prompt

16. • Simple data terminal communicating through a
host processor
• Can be connected through:
– a dedicated telephone line
– dail-up modem
– Internet service provider
How Do ATMs Work?

17. ATMS
Most people use ATMs to get
cash. Other popular uses for
ATMS are to check account
balances of your accounts and
to transfer money between
savings and checking accounts.
Remember to record all ATM
transactions and fees in your
check register to avoid
overdrawing your account.

18. Not all ATM machines will look exactly
like this one. Banks provide
instructions on their ATM machines.
If you need help using the ATM at
your bank, ask for assistance when you
open the account.
The ATM machine screen will prompt
you to enter information to make your
transaction.
ATM Machine

19. ATM Security
ATMs keep your personal identification
number (PIN) and other information
safe by using encryption
 Don't write down your PIN. If you must write it
down, do not store it in your wallet or purse.
 Make your PIN a series of letters or numbers that
you can easily remember, but that cannot easily be
associated with you personally.
 Avoid using birth dates, initials, house numbers or
your phone number.

20. If you make any mistakes when
entering the information prompted
by the ATM machine, you can press
‘Cancel” and start over. If there is
any problem with the machine, call
your bank.
ATM Machine

21. ATM Deposits
You can also deposit checks through your
bank’s ATM. Always get your receipt so
you have proof of the deposit made.
ATM machines have special envelopes to
make deposits. The envelopes are found in
a slot by the ATM machine.
Deposit slips are not always required when
making ATM deposits, but you need to fill
in the information listed on the envelopes.