How Do ATMs Work? Full ATM working Explained

How Do ATMs Work? Full ATM working Explained

An ATM is a Simple machine that has two input and four output devices attach to it. Like every machine ATM also have to communicate and process a certain information from with the user and data terminal. Host processer does the communication. The host process is analogues to the internet service provider (ISP) through which all the ATM machines are available to the cardholders.

Most host processes is connected with the leased line or dial up machines. Leased line is connected with Four wire through dedicated line of control. Dial Up connection are connected using a modem or through internet or phone.

Leased-line ATMs are popularly for very high-volume place because of their thru-put power, and dial-up ATMs are preferred for retail merchant locations where cost is a greater factor than thru-put. The initial cost for a dial-up machine is less than half that for a leased-line machine. The monthly OS for dial-up are only a fraction of the costs for leased-line.

The host Processer may be owned by a bank or any financial institution or by an independent Internet service providing company. The process is that only bank owned data processor support only bank related calls where Independent service providing company support merchant-owned Machines.

ATM has two input and four Output devices, let discuss them here in detail.

Input devices

1.   Card reader: The card reader function is to read the code on your debit card or Credit card. The host processor uses this information to read the instruction on the card.

2.   Keypad: The keypad enable the card holder that which type of transection he want, either he want to transect the money online or the payment he want in cash in which type of amount or in what chan.

ATM has Four-output device

1.   Speaker: The speaker function is to communicate visually with the cardholder and provide feedback for the user command.

2.   Visual Screen: The visual screen help the user money transection history. The screen has LED which is monochrome light. 

1.    Recipient printer:

           This device provide the cardholder a recipient of his transection.

2.   Cash dispenser: 

             This device is the heart of the ATM the other one that you may called the heart called the base of the ATM.

Sensing eye

The cash dispenser mechanism that identify the amount on the card using electric signals to the ATM, the dispenser calculate the whole amount of transection on the card. The journal information is stored for two years and also with a hard copy.

Besides that electric eye there is a sensor in the cash dispenser mechanism has, the function of the sensor is to calculate the thickness of the bill, if two bills are struck together then the other one is send to bin. This bin also called rejected bin. The same happens when the bill is either folded or muddled.

If more number of bills are rejected this will produce in alarming situation in which either it is detected that there is a problem with the Machine or with the card holder.

So what happens when you insert card in ATM?

When a cardholder want to transect the money he enter Card in the ATM machine and type the desired amount on keypad. The ATM transects this information to the host processor, which find out the cardholder bank account or desired institution. If the card holder want cash, then the electronic fund transfer is take place from bank account to host processor account. When the ATM machine receive the instruction that the user has enough balance to cash out, the ATM show him what type of chin he need, like note of $10, $100 or how many notes of $100. All these information are noted and machine do what has been decided by the cardholder.

ATM security

It is important to use a well light in public ATM so that the user can easily see the keypad and other things related to ATM; money transection procedure.

Many banks have the rule that you need to add the pin number written on the card in order to transect money from ATM machine. Here are some PIN tips. (PIN stand for personnel identification number.

A: Don’t write your PIN on a page or somewhere else, try to remember the code, if you lost it and someone found it then will be in trouble.

B: Only use your card when you approach ATM, if you are waiting for ATM and pick your card someone may take from you by force.

C: Don’t enter your PIN when you are surrounded by People or someone else is going on the way.

D: Don’t ever handle your PIN to close friend or some one who you can trust.

E: Don’t keep your car running when you have a walk in ATM, take keys with your self and try to lock door and windows of the car.

F: If someone is trying to feel you discomfort able leave the transaction and let other do the transaction.

G: Always use that machine which is located in well light and safe place other wise either you end up losing your money or losing your PIN.

H: Never ever try to transect in late night time, may someone is following you and can snatch the money and the card from you.

The entry of your four-digit personal identification number (PIN) on the keypad should still be obscured from observation. When you enter your PIN try to stand staright and cover the screen.

In this article we discuss the internal parts of the ATM machine, how host processor help in the ATM mechanism and at the second last topic we study how ATM works when you insert your Card and how it transfer money, in the last section we discuss some safety issues and precautions needed to take by the card holder to perform transection using ATM machine.

If you still have any problem feel free to comment and share you views.

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