An automated teller machine (ATM) is a computerized telecommunications device that provides the customers of a financial institution with access to financial transactions in a public space without the need for a human clerk or bank teller. 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, such as an expiration date or CVC (CVV). Security is provided by the customer entering a personal identification number (PIN). Using an ATM, customers can access their bank accounts in order to make cash withdrawals (or credit card cash advances) and check their account balances as well as purchasing mobile cell phone prepaid credit. ATMs are known by various other names including automated banking machine, money machine, bank machine, cash machine, hole-in-the-wall, cashpoint, Bancomat (Europe and Russia), Multibanco (after a registered trade mark, in Portugal), and Any Time Money like in India and Nepal.
The first 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. But for common use and to develop trust to the customer it tooks nearly another 25 years a head until De La Rue developed the first electronic ATM, which was installed first in Enfield Town in North London, United Kingdom on 27 June 1967 by Barclays Bank. The first person to use the machine was the British variety artist and actor Reg Varney. The first ATMs accepted only a single-use token or voucher, which was retained by the machine. These worked on various principles including radiation and low-coercivity magnetism that was wiped by the card reader to make fraud more difficult. The machine dispensed pre-packaged envelopes containing ten pounds sterling. The idea of a PIN stored on the card was developed by the British engineer James Goodfellow in 1965. In 1968 the networked ATM was pioneered in Dallas, Texas, by Donald Wetzel who was a department head at an automated baggage-handling company called Docutel. In 1995 the Smithsonian's National Museum of American History recognised Docutel and Wetzel as the inventors of the networked ATM.
ATMs are placed not only near or inside the premises of banks, but also in locations such as shopping centers/malls, airports, grocery stores, petrol/gas stations, restaurants, or any place large numbers of people may gather. These represent two types of ATM installations: on and off premise. On premise ATMs are typically more advanced, multi-function machines that complement an actual bank branch's capabilities and thus more expensive. Off premise machines are deployed by financial institutions and also ISOs (or Independent Sales Organizations) where there is usually just a straight need for cash, so they typically are the cheaper mono-function devices. Many ATMs have a sign above them indicating the name of the bank or organization owning the ATM, and possibly including the list of ATM networks to which that machine is connected. Most ATMs are connected to interbank networks, enabling people to withdraw and deposit money from machines not belonging to the bank where they have their account or in the country where their accounts are held (enabling cash withdrawals in local currency). Some examples of interbank networks include PULSE, PLUS, Cirrus, Interac and LINK. ATMs rely on authorization of a financial transaction by the card issuer or other authorizing institution via the communications network. This is often performed through an ISO 8583 messaging system. Many banks charge ATM usage fees. In some cases, these fees are charged solely to users who are not customers of the bank where the ATM is installed; in other cases, they apply to all users.
In order to allow a more diverse range of devices to attach to their networks, some interbank networks have passed rules expanding the definition of an ATM to be a terminal that either has the vault within its footprint or utilizes the vault or cash drawer within the merchant establishment, which allows for the use of a scrip cash dispenser
ATMs typically connect directly to their ATM Controller via either a dial-up modem over a telephone line or directly via a leased line. Leased lines are preferable to POTS lines because they require less time to establish a connection. Leased lines may be comparatively expensive to operate versus a POTS line, meaning less-trafficked machines will usually rely on a dial-up modem. That dilemma may be solved as high-speed Internet VPN connections become more ubiquitous.
An ATM is typically made up of the following devices:
a.CPU (to control the user interface and transaction devices)
b. Magnetic and/or Chip card reader (to identify the customer)
c. PIN Pad (similar in layout to a Touch tone or Calculator keypad), often manufactured as part of a secure enclosure.
d. Secure cryptoprocessor, generally within a secure enclosure.
e. Display (used by the customer for performing the transaction)
f. Function key buttons (usually close to the display) or a Touchscreen (used to select the various aspects of the transaction)
g. Record Printer (to provide the customer with a record of their transaction)
h. Vault (to store the parts of the machinery requiring restricted access)
i. Housing (for aesthetics and to attach signage to)
Recently, due to heavier computing demands and the falling price of computer-like architectures, ATMs have moved away from custom hardware architectures using microcontrollers and/or application-specific integrated circuits to adopting a hardware architecture that is very similar to a personal computer. Many ATMs are now able to use operating systems such as Microsoft Windows and Linux. Although it is undoubtedly cheaper to use commercial off-the-shelf hardware, it does make ATMs vulnerable to the same sort of problems exhibited by conventional computers.
Mechanisms found inside the vault may include:
Dispensing mechanism (to provide cash or other items of value)
Deposit mechanism, including a Cheque Processing Module and Batch Note Acceptor (to allow the customer to make deposits)
Security sensors (Magnetic, Thermal, Seismic)
Locks: (to ensure controlled access to the contents of the vault)
ATM vaults are supplied by manufacturers in several grades. Factors influencing vault grade selection include cost, weight, regulatory requirements, ATM type, operator risk avoidance practices, and internal volume requirements. ATM manufacturers recommend that vaults be attached to the floor to prevent theft.
With the migration to commodity PC hardware, standard commercial "off-the-shelf" operating systems and programming environments can be used inside of ATMs. Typical platforms used in ATM development include RMX, OS/2, and Microsoft operating systems (such as MS-DOS, PC-DOS, Windows NT, Windows 2000, Windows XP Professional, or Windows XP Embedded). Java, Linux and Unix may also be used in these environments.
Before an ATM is placed in a public place, it typically has undergone extensive testing with both test money and the backend computer systems that allow it to perform transactions. Banking customers also have come to expect high reliability in their ATMs, which provides incentives to ATM providers to minimize machine and network failures. Financial consequences of incorrect machine operation also provide high degrees of incentive to minimize malfunctions.
ATMs and the supporting electronic financial networks are generally very reliable, with industry benchmarks typically producing 98.25% customer availability for ATMs and up to 99.999% availability for host systems. If ATMs do go out of service, customers could be left without the ability to make transactions until the beginning of their bank's next time of opening hours.
What about in Nepal ??
SmartChoice Technologies Pvt. Limited has deployed a first-of-its-kind initiative in Nepal creating an integrated shared services network (SCT-Network) for Automated Teller machines (ATMs) and Point-of-sale (POS) Terminals, managed through a national switch. The SCT-Network is a fully integrated network supporting multiple device types and card acquiring standards. Network has been made available, on a subscription basis (pay-per-use), to banks and financial institutions across the country. The company has also launched a local debit card program (branded as SCT™) to enable banks to issue cards to customers at a fraction of the costs typically associated with international card schemes. The company also provides a secure facility for Card and PIN production & management, customized for each bank. This facility is equipped with world standard Hardware Based Encryption (RACAL-HSM) supporting the latest (e.g. 3DES) encryption standards.
Because of SCT you are able to use credit cards even in Nepal and you look around banks, commercial buildings you can see ATM boxes. We suggest used credit card and get way from normal thieves or loosing money due to self negligence , which happens in our daily life.
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