AUTOMATED TELLER MACHINE

An automated teller machine, also known as an automatic teller machine (ATM, American, British, Australian, Malaysian, South African, Singaporean, Indian, Maldivian, Hiberno, Philippine and Sri Lankan English), automated banking machine (ABM, Canadian English), cash point (British English), cashline, minibank, cash machine, cash dispenser or bankomat is an electronic telecommunications device that enables the customers of a financial institution to perform financial transactions, particularly cash withdrawal, without the need for a human cashier, clerk or bank teller.According to the ATM Industry Association (ATMIA),there are now close to 3 million ATMs installed worldwide.

On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN) which must match the PIN stored in the chip on the card (if the card is so equipped) or in the issuing financial institution’s database.Using an ATM, customers can access their bank deposit or credit accounts in order to make a variety of transactions such as cash withdrawals, check balances, or credit mobile phones. If the currency being withdrawn from the ATM is different from that in which the bank account is denominated the money will be converted at an official exchange rate. Thus, ATMs often provide the best possible exchange rates for foreign travellers, and are widely used for this purpose.

History:-The idea of out-of-hours cash distribution developed from bankers’ needs in Asia (Japan), Europe (Sweden and the United Kingdom) and North America (the United States).Little is known of the Japanese device other than it was called “Computer Loan Machine” and supplied cash as a three-month loan at 5% p.a. after inserting a credit card. The device was operational in 1966.In the US patent record, Luther George Simjian has been credited with developing a “prior art device”. Specifically his 132nd patent, which was first filed on 30 June 1960 (and granted 26 February 1963). The roll-out of this machine, called Bankograph, was delayed by a couple of years, due in part to Simjian’s Reflectone Electronics Inc. being acquired by Universal Match Corporation.An experimental Bankograph was installed in New York City in 1961 by the City Bank of New York, but removed after six months due to the lack of customer acceptance. The Bankograph was an automated envelope deposit machine (accepting coins, cash and cheques) and did not have cash dispensing features.[read more..]

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