Understanding ATMs

Customers can perform simple financial transactions using an automated teller machine (ATM). ATM is an electronic banking facility that does not require the help of a bank representative. It is a device that primarily allows you to access your account for cash withdrawals, depending on your card and other various services.

Banks facilitate many ATM cash and deposit services for easy financial transactions. Most ATMs let anyone with a credit or debit card withdraw or deposit money. They are very practical for quick self-service tasks like cash withdrawals, deposits, utility payments, and transfers.

Banks operating ATM cash management services have charges from customers. Using an ATM run by the bank that manages the account can avoid some or all of these costs. It may be more expensive to use an ATM outside of your bank.

Types of ATM

There are two major types of ATMs. They include:

Basic units: these ATMs are very easy to use and have no advanced features. They only perform the basic function of an ATM; customers only have access to cash withdrawals and account balance updates.

Complex units: these ATMs come with more advanced and complex features. The machines enable line of credit payments and transfers, receive deposits, and access account data. Many users have to be bank account holders to use the complex units.

Components of an ATM 

Despite the variations in design, all ATMs share the following fundamental components:

Card reader: One of the essential components of the ATM. This component reads the magnetic stripe on the back of the card or the chip on the card's front after insertion, which tells the machine to either allow or reject the card. 

Keypad: Another important component, data, and commands, including personal identification number (PIN), are entered via the keypad. Also, the kind of transaction needed, and the amount is typed through the keypad.

Cash dispenser: An open rectangular space in the machine connected to a safe at the base allows bills to be dispensed.

Printer: Customers may ask for receipts printed at the ATM if necessary. The type of transaction, the dollar amount, and the account balance are all noted on the receipt.

Screen: The ATM offers prompts that direct the user through the transaction execution procedure. Account details and balances are just two examples of the information displayed on the screen.

Conclusion

Financial transactions are easier with ATMs, and with technological development, they can perform many functions.