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ATMs: Automated Teller
      Machines


      DR. TEJINDERPAL SINGH
 Lecture, University Business School
    Panjab University Chandigarh
What is an ATM ??




An automated teller machine (ATM) is a computerized
telecommunications device that provides the customers of a
financial institution / bank with access to financial
transactions in a public space without the need for a human
clerk or bank teller round the clock (24 hrs a day)
ATM Card

 On most modern ATMs, the customer is identified by
  inserting a plastic ATM card with a magnetic stripe or a
  plastic smartcard with a chip, that contains a unique card
  number and some security information.



 Security is provided by the customer entering a personal
  identification number (PIN).
Functions of ATM

 24-hour access to cash
 View Account Balances & Mini-statements
 Order a Cheque Book / Account Statement
 Transfer Funds between accounts
 Refill your Prepaid card
 Pay your utility bills
 Deposit cash or cheques
 Change your PIN
 Learn about other products
History Of ATM

    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 New York City by the City Bank of New York

    The first person to use the machine was Reg Varney of quot;On the Busesquot; fame, a British

    Television 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 Don Wetzel in 1968



    Notable historical models of ATMs include the IBM 3624 and 473x series, Diebold 10xx

    and TABS 9000 series, and NCR 5xxx series.
Reg Varney using the first ATM in 1967
Structure of ATM

 Card reader
 Keypad
 Speaker
 Display screen
 Receipt printer
 Cash dispenser
Card reader



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.
Keypad

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.
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.
Leased-line machines
commonly use a
monochrome or color
CRT (cathode ray tube)
display. Dial-up
machines commonly use
a monochrome or color
LCD.
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.
Types of ATMs

 Onl-Line Atms
 Off -line Atms
 On- site ATMs
 Off-Site Atms
 Mobile Atms
 Biometric ATMs
 Talking Atms
 ATMs For Blinds
 Drive In Atms
Examples Of ATMs
Mobile ATM
Drive in ATM
On-site ATM
Off-Site ATM
ATM for Blinds
Biometric ATM
ATM Frauds

 Atm Card cloning Frauds


 Fake Atms(The first known instance of a fake ATM was installed at a shopping mall
  in Manchester, Connecticut in 1993



 Attack On Atms


 PIN crack
Alternative uses

 Deposit currency recognition, acceptance, and recycling
 Paying routine bills, fees, and taxes (utilities, phone bills, social
    security, legal fees, taxes, etc.)
    Printing bank statements

    Updating passbooks

    Loading monetary value into stored value cards

    Purchasing

        postage stamps.
    
        lottery tickets
    
        train tickets
    
        concert tickets
    
        shopping mall gift certificates.
    

 Games and promotional features
 Donating to charities
 Cheque Processing Module
Precautions while using ATM / ATM Cards

 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.
   Store your ATM card in your purse or wallet, in an area where it
    won't get scratched or bent.
   Get your card out BEFORE you approach the ATM. You'll be more
    vulnerable to attack if you're standing in front of the ATM, fumbling
    through your wallet for your card.
   Stand directly in front of the ATM keypad when typing in your PIN.
    This prevents anyone waiting to use the machine from seeing your
    personal information.
Cont…

 After your transaction, take your receipt, card and money
  away. Do not stand in front of the machine and count your
  money.

 If you are using a drive-up ATM, get your vehicle as close to
  the machine as possible to prevent anyone from coming up to
  your window. Also make sure that your doors are locked
  before you drive up to the machine.

 Do not leave your car running while using a walk-up ATM.
  Take your keys with you and lock the doors before your
  transaction.
 If someone or something makes you uncomfortable, cancel
  your transaction and leave the machine immediately. Follow
  up with your bank to make sure the transaction was cancelled
  and alert the bank to any suspicious people.
Present Position Of ATMs in India
automated teller  machines
automated teller  machines
automated teller  machines

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automated teller machines

  • 1. ATMs: Automated Teller Machines DR. TEJINDERPAL SINGH Lecture, University Business School Panjab University Chandigarh
  • 2. What is an ATM ?? An automated teller machine (ATM) is a computerized telecommunications device that provides the customers of a financial institution / bank with access to financial transactions in a public space without the need for a human clerk or bank teller round the clock (24 hrs a day)
  • 3. ATM Card  On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a chip, that contains a unique card number and some security information.  Security is provided by the customer entering a personal identification number (PIN).
  • 4. Functions of ATM  24-hour access to cash  View Account Balances & Mini-statements  Order a Cheque Book / Account Statement  Transfer Funds between accounts  Refill your Prepaid card  Pay your utility bills  Deposit cash or cheques  Change your PIN  Learn about other products
  • 5. History Of ATM 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 New York City by the City Bank of New York The first person to use the machine was Reg Varney of quot;On the Busesquot; fame, a British  Television 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 Don Wetzel in 1968  Notable historical models of ATMs include the IBM 3624 and 473x series, Diebold 10xx  and TABS 9000 series, and NCR 5xxx series.
  • 6. Reg Varney using the first ATM in 1967
  • 7. Structure of ATM  Card reader  Keypad  Speaker  Display screen  Receipt printer  Cash dispenser
  • 8. Card reader 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.
  • 9. Keypad 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.
  • 10. Speaker The speaker provides the cardholder with auditory feedback when a key is pressed.
  • 11. Display screen The display screen prompts the cardholder through each step of the transaction process. Leased-line machines commonly use a monochrome or color CRT (cathode ray tube) display. Dial-up machines commonly use a monochrome or color LCD.
  • 12. Receipt printer The receipt printer provides the cardholder with a paper receipt of the transaction
  • 13. 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.
  • 14.
  • 15. Types of ATMs  Onl-Line Atms  Off -line Atms  On- site ATMs  Off-Site Atms  Mobile Atms  Biometric ATMs  Talking Atms  ATMs For Blinds  Drive In Atms
  • 23. ATM Frauds  Atm Card cloning Frauds  Fake Atms(The first known instance of a fake ATM was installed at a shopping mall in Manchester, Connecticut in 1993  Attack On Atms  PIN crack
  • 24.
  • 25. Alternative uses  Deposit currency recognition, acceptance, and recycling  Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, taxes, etc.) Printing bank statements  Updating passbooks  Loading monetary value into stored value cards  Purchasing  postage stamps.  lottery tickets  train tickets  concert tickets  shopping mall gift certificates.   Games and promotional features  Donating to charities  Cheque Processing Module
  • 26. Precautions while using ATM / ATM Cards  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.  Store your ATM card in your purse or wallet, in an area where it won't get scratched or bent.  Get your card out BEFORE you approach the ATM. You'll be more vulnerable to attack if you're standing in front of the ATM, fumbling through your wallet for your card.  Stand directly in front of the ATM keypad when typing in your PIN. This prevents anyone waiting to use the machine from seeing your personal information.
  • 27. Cont…  After your transaction, take your receipt, card and money away. Do not stand in front of the machine and count your money.  If you are using a drive-up ATM, get your vehicle as close to the machine as possible to prevent anyone from coming up to your window. Also make sure that your doors are locked before you drive up to the machine.  Do not leave your car running while using a walk-up ATM. Take your keys with you and lock the doors before your transaction.  If someone or something makes you uncomfortable, cancel your transaction and leave the machine immediately. Follow up with your bank to make sure the transaction was cancelled and alert the bank to any suspicious people.
  • 28. Present Position Of ATMs in India