An automated teller machine or ATM is a device that allows customers to perform various financial functions, including cash deposit, cash withdrawal, fund transfer, balance inquiry, regular bill payment, account information, and mini statements.
The main idea is that you will be able to do it without entering the bank, waiting in a queue, and talking with the cashier or banker. We recommend you to click here so that you can learn more about automated teller machines in general.
The first cash dispenser or machine was installed in Rockville Centre, New York, in 1969. Today, we can find more than 3.5 ATMs all across the globe.
Donald Wetzel and John Shepherd-Barron invented it with an idea to replace the rows and need to enter the bank to withdraw money.
Different Types of ATMs
We can differentiate various types of automated teller machines that we can use for different purposes. Generally, the main distinction is based on its uses and other characteristics.
- On-Site ATM – Today, you can find an ATM close to the premises of a particular banking branch or within the branch so that customers could avoid waiting in lines. That is the best way to reduce the time spent inside the banks, and they can still get the transactions and everything that comes with it.
- Off-Site ATMs – On the other hand, automated teller machines can be located outside the bank premises, which means in railway stations, shopping malls, petrol pumps, and airports. You can easily order atms so that you can place it next to your shop, which will bring you more customers in general. It means that the branch is not present, and the machine is on a standalone basis. The main idea is to help others handle the transactions in areas that are far from the bank. In most cases, these machines are located within the areas with dense foot traffic, so that people could use the banking services without outside the particular branch.
- Worksite ATM – These machines are generally located at the premises of a particular business or organization, and they are made explicitly for employees and customers.
- Mobile ATM – Finally, we can say that mobile or wheeled automated teller machines are perfect due to exceptional mobility. Therefore, you will be able to move them into different areas so that customers could use their services with additional convenience. Keep in mind that most banks across the globe have these options, and you will be able to implement the one within your dispensary so that you can reach more customers than before.
On the other hand, we can differentiate ATMs in basic units that will allow you to receive updated balances and withdraw cash, and complex machines that come with additional features, including paying deposits, handling transfers, and using it for currency exchange.
If you wish to access the advanced features of complex units, you need to be an account holder at the financial institution that owns a machine. In the last few years, automated teller machines became more and more popular, and withdrawals became safer and more efficient than before.
At the same time, in the future, we will not enter the bank to handle the transactions, but we will have a vast array of options similar to traditional ones.
Even though most of them are different when it comes to design, all of them come with essential components, including:
- Card Reader – It is the part of the machine that reads the chip in which you can input or place the card so that you can withdraw money and present proof that you are a user.
- Keypad – This particular part is essential. It will allow you to input the personal identification number or PIN as well as other information such as the amount of money you wish to withdraw. The latest models come with a touchscreen keypad, which means that you will not have physical numbers similarly to the past ones.
- Cash Dispenser – This is one of the most important parts because you will get the area that will dispense bills within the slot of the machine. It is mostly at the bottom.
- Printer – If you need proof of your transaction, the printer inside can provide you a receipt. You can read on it the amount of transaction, the type as well as account balance, among other things. Check out this link: https://www.investopedia.com/terms/a/atm.asp#:~:text=An%20automated%20teller%20machine%20(ATM)%20is%20an%20electronic%20banking%20outlet,access%20cash%20at%20most%20ATMs. to understand the importance of ATMs.
- Screen – You will get options available on the screen so that you can choose whether you should withdraw or deposit money by using the automatic teller machine. Similarly, as your mobile device, the information will show itself on the screen so that you can navigate based on your preferences.