2. What is an
ATM?
An automated teller machine (ATM) is a computerized
telecommunications device that provides the customers of a
financial institution or bank with access to financial transactions in
a public space without the need for a human clerk or bank teller 24
hours a day.
ATMs plays a vital role in facilitating the banking services to banks
as well as customers.
ATM is the back bone of retail banking sector.
The word "machine" in the term "ATM machine" is certainly
redundant, but widely used.
3. History ofATM
The ATM was invented by Scot John Shepherd-Barron.
The world's first ATM was installed in a branch of Barclays in the
northern London borough of Enfield, Middlesex, in 1967.
A mechanical cash dispenser was developed and built by Luther
George Simjian and installed in 1939 in NewYork City by the City
Bank of NewYork
The first person to use the machine was RegVarney of "On the
Buses" fame, a BritishTelevision programme from the 1960s
The idea of a PIN stored on the card was developed by the British
engineer John Rose in 1965.
The modern, networked ATM was invented in Dallas,Texas, by
DonWetzel in 1968
Notable historical models ofATMs include the IBM 3624 and 473x
series, Diebold 10xx andTABS 9000 series, and NCR 5xxx series.
4. Some facts
aboutATM
Growth of ATM in India Growth of ATM worldwide
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Number of
ATM
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2007
2009
2011
2013
Number of
ATM
5. Functions of
ATM
The concept of ATM is 24× 7× 365.
Flexibility of using ATM of other banks i.e. we can make
transaction from anyATM while our account not in same bank.
Can recharge their mobile phone prepaid connection.
Pay the bills.
Money transfer from one account to another one.
Check the balance of account at any time.
Register their mobile number for account details.
Deposit the cheques or cash in account.
Change the PIN number.
Purchasing items.
6. ATM cards:
How to use an
ATM?
The customer is identified by inserting a plasticATM card with a
magnetic stripe or a plastic smartcard with a chip that contains the
unique card number and security information.
Security is provided by the customer entering a personal
identification number (PIN).
Upon successful entry of the PIN, the customer may perform a
transaction.
The ATM calls up the bank's computers to verify the balance,
dispenses the cash and then transmits a completed transaction
7. Structure of
ATM
Keypad
Speaker
Display screen
Receipt printer
Cash dispenser
CPU
Magnetic or chip card reader
Secured crypto processor
Function key or touch screen
Vault
Housing
8. Input devices of
ATM:
Card reader
and Keypad
The card reader captures the
account information stored
on the magnetic stripe on the
back of an ATM/debit or
credit card. The host
processor uses this
information to route the
transaction to the
cardholder's bank.
The keypad lets the
cardholder tell the bank what
kind of transaction is
required (cash withdrawal,
balance inquiry, etc.) and for
what amount. Also, the bank
requires the cardholder's
personal identification
number (PIN) for verification.
Federal law requires that the
PIN block be sent to the host
processor in encrypted form.
9. Output devices of
ATM:
Display
screen, cash
dispenser and
receipt printer
Display Screen:
The display screen prompts the
cardholder through each step
of the transaction process.
Leased-line machines
commonly use a monochrome
or colour CRT (cathode ray
tube) display. Dial-up
machines commonly use a
monochrome or colour LCD.
Cash dispenser and
Receipt Printer:
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.
The receipt printer provides
the cardholder with a paper
receipt of the transaction.
10. Requirements
ofATM
HARDWARE REQUIREMENTS
Processor : Processorx86 Family 6 Model 15 Stepping 13
GenuineIntel~2394Mhz
RAM : 512 MB or more
Hard disk : 20 GB or more
Monitor : VGA/SVGA
Keyboard : 104 Keys
Mouse : 2 buttons/ 3 buttons
SOFTWARE REQUIREMENTS
Operating System : Windows 2000/XP MS-DOS, PC-DOS, Java, Linux, Unix
Front end : JavaApplet
Database : Ms-Access.
CAL protocols such as Diebold 911 or 912 are replace by new protocols as IFX
11. ATM
Networking
An ATM is simply a data terminal with two input and four output
devices. Like any other data terminal, the ATM has to connect to
and communicate through a host processor.
Leased-line machines connect directly to the host processor through
a four-wire, point-to-point, dedicated telephone line.
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 access number dialed by modem.
When a cardholder wants to do an ATM transaction, he or she
provides the necessary information by means of the card reader and
keypad.
ATM forwards this information to the host processor, which routes
the transaction request to the cardholder's bank or the institution that
issued the card.
If the cardholder is requesting cash, the host processor causes an
electronic funds transfer to take place from the customer's bank
account to the host processor's account.
Once the funds are transferred to the host processor's bank account,
the processor sends an approval code to the ATM authorizing the
machine to dispense the cash.
13. Advantages
and
disadvantages
ofATM
Advantages
ATM supports voice, video and data
allowing multimedia and mixed
services over a single network.
Provides the best multiple service
support
Supports delay close to that of
dedicated services
Able to use all common physical
transmission paths like SONET.
Cable can be twisted-pair, coaxial or
fiber-optic
Ability to connect LAN toWAN
Legacy LAN emulation
Efficient bandwidth use by statistical
multiplexing
Higher aggregate bandwidth
High speed Mbps and possibly Gbps
Disadvantages
Flexible to efficiency’s expense, at
present, for any one application it
is usually possible to find a more
optimized technology
Cost, although it will decrease
with time
New customer premises hardware
and software are required
Competition from other
technologies -100 Mbps FDDI, 100
Mbps Ethernet and fast Ethernet
Presently the applications that can
benefit fromATM such as
multimedia are rare
The wait, with all the promise of
ATM’s capabilities many details
are still in the standards process
14. Location and
types ofATM
ATMs are placed not only near or inside the premises of banks, but
also in locations such as shopping centers/malls, airports, grocery
stores, petrol/gas stations, restaurants, or any place large numbers of
people may gather.
On-LineATMs
Off -lineATMs
On- site ATMs
Off-SiteATMs
Mobile ATMs
Biometric ATMs
TalkingATMs
ATMs For Blinds
Drive In ATMs
15. Factors for
growth ofATM
Make transaction any time and more than one time in a day.
Take less time to make a transaction than a teller in banks.
Easy to use for people.
Much reliable i.e. no body can access your account without your
permission.
It reduce the bank ‘s work load.
Accurate transaction.
Can make payment for purchase anything.
0
0.5
1
1.5
teller
ATM
Phone
Debit
Internet
Cost ofTransaction with
various mode of Banking
Cost in
Rupees
16. Problems with
ATMs
Problem faced by Customers:
They didn’t receive cash while the is account debited.
Wrong insert the ATM card.This problem is more common with new
ATM users who are not familiar with ATM machine.
They didn’t receive slip of account balance.
Money transfer problem:
Some time money stuck in machine at the time of transaction.
Some time machine didn’t accept ATM cards.
Time out problem when the customer late for any step of processing.
Customer face the problem when the process of bank is change.
When cash not available.
Problem faced by Banks :
Theft money from ATMs.
Burglary ofATMs (including theft of entire ATMs).
System problem (including server down).
System failure (system crash or the software not work properly).
Hack the Bank’s site which affect whole banking system.
17. Precautions
while using
ATM orATM
cards
Make your PIN a series of numbers that you can easily memorise and
avoid using common dates and numbers related to your life.
Don’t write down your PIN and keep it in a place where it can be easily
found. Keep your ATM card in safe places. Keep your PIN a secret and
don’t disclose confidential information about your card over the
telephone or the Internet.
Observe the surroundings at the ATM location before conducting a
transaction.
Block the view of others when using anATM to make sure they cannot
see your PIN.
Look for possible fraudulent devices attached to anATM. If anything
looks suspicious, use another machine.
Never allow a cashier or any other person to enter your PIN for you.
Have your card ready to minimize the time you spend at anATM.
When using a drive-up ATM after dark, keep your car doors locked,
passenger windows rolled up and headlights on when conducting your
transaction.
If using an ATM at night, try to take someone with you.
Check your ATM receipts against your monthly credit union
statements, just as you do your cancelled checks.
If you think you are being followed after leaving an ATM, call 911 or
look for a police officer.
After transaction, take your receipt, collect your ATM card and leave
the place immediately. Do not count the money in there.
18. Conclusion
Based studies on the ATM we hereby conclude that ATM is the
easiest way of depositing and withdrawing money.Transaction is
possible any time, that’s why in India some people callATM as “all
time money”. If ATM machines are connected to internet then its
possible to do transaction from any where, 24 hours a days and 365
days a year.With the security of ATM improving it has now become
a safe mode of transaction. Hence it can be concluded that ATM is
safe, fast, reliable, convenient, excisable and any time money
machine.
