Automated teller machine (ATM) is a computer terminal that functions as a miniature financial institution. ATM’s enable people to make a variety of banking transactions at any time. For example, a customer can use an ATM to make a bank deposit, withdraw cash, get account information, transfer funds between accounts, or get a cash advance on a credit card.
To use an ATM, a customer must have a special plastic card with a magnetic stripe across the back or an embedded computer chip. The customer inserts the card into the ATM and uses the keyboard to enter a personal identification number (PIN) and tell the machine what to do. The machine reads the customer’s account number from the magnetic stripe or computer chip and performs the desired action. Many ATM’s have braille symbols and headphone jacks to assist the visually impaired.
ATM’s are located at banks, airports, stores, and many other public places. Most ATM’s are connected to a computer network so that the customer can receive the same service at any machine. However, most ATM’s are connected to a particular bank, and many charge added fees for connecting to another bank.
Machines that dispense cash came into use in the late 1960’s. ATM’s were first introduced in the early 1970’s and became popular in the 1980’s.
