Electrically powered automated teller machines (ATMs) facilitate banking transactions by providing a convenient and user-friendly way for customers to perform various financial activities without the need for direct interaction with bank staff. Here's how they work:
Card Authentication: To initiate a transaction, a customer inserts their bank card (debit or credit card) into the ATM's card reader. The ATM reads the magnetic stripe or chip on the card to identify the customer and their associated bank account.
PIN Entry: The customer is prompted to enter a Personal Identification Number (PIN) to verify their identity. The PIN serves as a security measure to ensure that only authorized individuals can access the account.
Menu and Transaction Selection: Once the PIN is verified, the ATM displays a menu of available transactions on the screen. These transactions can include options like withdrawing cash, depositing funds, checking account balances, transferring money between accounts, and more.
Transaction Input: The customer selects the desired transaction from the menu by pressing the corresponding button on the ATM keypad.
Transaction Processing: The ATM connects to the customer's bank through a secure network connection. The transaction details, such as the amount to be withdrawn or the account to which funds should be transferred, are sent to the bank's server for processing.
Cash Dispensing: In the case of a cash withdrawal, the ATM communicates with the bank's server to verify the available balance and whether the requested withdrawal amount is within the account's limits. If approved, the ATM dispenses the requested amount of cash to the customer.
Receipt Printing: After completing the transaction, the ATM typically offers the option to print a transaction receipt. The receipt provides a record of the transaction details, including the date, time, transaction type, and remaining account balance.
Additional Functions: Depending on the ATM's capabilities, customers might also be able to perform additional functions, such as depositing cash or checks into their accounts. For cash deposits, the ATM may scan and count the deposited bills, providing an itemized list on the receipt.
Card Retrieval: Once the transaction is complete, the customer's card is ejected from the ATM, and the customer is prompted to take the card.
Transaction Completion: The ATM displays a confirmation message on the screen, indicating that the transaction was successful. The customer can choose to perform more transactions or end the session.
It's important to note that ATMs have evolved over the years and can vary in terms of features and functionalities. Some modern ATMs are equipped with touchscreens, biometric authentication (such as fingerprint scanning), contactless payment options (NFC), and the ability to perform more advanced banking tasks. Overall, ATMs provide a convenient and accessible way for customers to manage their finances outside of traditional banking hours and locations.