The cash-dispensing mechanism has an electric eye that counts each bill as it exits the dispenser. The bill count and all of the information pertaining to a particular transaction is recorded in a journal. The journal information is printed out periodically and a hard copy is maintained by the machine owner for two years. Whenever a cardholder has a dispute about a transaction, he or she can ask for a journal printout showing the transaction, and then contact the host processor. If no one is available to provide the journal printout, the cardholder needs to notify the bank or institution that issued the card and fill out a form that will be faxed to the host processor. It is the host processor's responsibility to resolve the dispute.
Besides the electric eye that counts each bill, the cash-dispensing mechanism also has a sensor that evaluates the thickness of each bill. If two bills are stuck together, then instead of being dispensed to the cardholder they are diverted to a reject bin. The same thing happens with a bill that is excessively worn, torn, or folded.
The number of reject bills is also recorded so that the machine owner can be aware of the quality of bills that are being loaded into the machine. A high reject rate would indicate a problem with the bills or with the dispenser mechanism.
ATMs for the Visually Impaired
There are ATMs that are accessible to blind and visually impaired people. These machines are located at kiosks rather than bank drive-thrus. And the keypads at ATMs are equipped with braille.
FAQs
ATMs require you to use a plastic card—either a bank debit card or a credit card—to complete a transaction. Your identity is authenticated by a PIN before any transaction can be made. Many cards come with a chip, which transmits data from the card to the machine.
How ATM machine works step by step? ›
Card reader: Reads the chip and magnetic stripe on the card that links the card to the correct bank account. Keypad: Enables the customer to enter their PIN and select the amount of cash they wish to withdraw. Cash dispenser: The slot through which notes are dispensed, connected to a safe at the bottom of the machine.
How does ATM work technically? ›
The host processor deducts the money from the cardholder's account if the cardholder demands it. The processor transmits the approval code towards the ATM and the approved machine to distribute the cash when the money is moved from the user's account towards the host processing bank account.
Where does the money come from in an ATM? ›
The money in the ATM comes from the bank that owned the ATM . It is accounted as an asset like any tellers cash and balances like any teller by the head teller or bank manager usually as part of their duties to manage the tellers .
How do ATMs communicate with banks? ›
Leased-line machines connect directly to the host processor through a four-wire, point-to-point, dedicated telephone line. Dial-up ATMs connect to the host processor through a normal phone line using a modem and a toll-free number, or through an Internet service provider using a local access number dialed by modem.
How do ATMs get refilled? ›
The ATM Replenishment Process
There is only a certain amount of cash in the machine at any time. Therefore, the terminal must go through an ATM replenishment cycle. ATM replenishment is the process when a third party hired by the bank removes the leftover money in the machine and replaces it with a fresh load.
How do ATM owners make money? ›
You can make money from the machine through ATM surcharge fees. The average surcharge per transaction is usually $2 to $3, so a mid-priced machine would only need to handle four or five transactions daily to make enough surcharge revenue to pay for itself and begin turning a profit.
How much does an ATM machine cost? ›
One major contributing factor to those numbers is the affordability of the ATM machine itself. While the machines were once considered to be too expensive for many business owners, prices these days typically range from $2,000 to $2,500, depending on the specific make and model.
How do ATMs know money is real? ›
Here is how the validation process goes in ATMs: First, the ATM's validator determines the dimensions of the banknote and scans it in different spectrums: visible, magnetic, IR, UV. It allows to verify all major signs of authenticity.
How much money is inside an ATM machine? ›
ATM cash limit
While your personal ATM withdrawal limit might range from a few hundred to a few thousand dollars a day, most bank ATMs are stocked with a set amount of cash, typically ranging from $50,000 to $200,000, spending on its location, size, and bill denominations.
In many cases, ATMs are owned by banks and credit unions that use the convenience and location of their ATMs to attract customers.
What holds the money in an ATM? ›
Cassette - This part holds the ATM cash. Cash dispenser - This part moves cash from the cassette to the cash tray. Printer - This part prints the receipt for the customer. Power Supply - This part connects the rest of the ATM to external power.
How does money come out of an ATM? ›
Cash dispenser: Bills are dispensed through a slot in the machine, which is connected to a safe at the bottom of the machine. Printer: If required, you can request receipts that are printed out of the ATM. The receipt records the type of transaction, the amount, and the current account balance.
How does an ATM work step by step? ›
How to withdraw cash from an ATM
- Insert your debit or credit card into the ATM.
- Confirm your identity by entering your personal identification number (PIN).
- Choose the account you want to withdraw funds from or indicate that you want to get a cash advance.
- Select how much you want to withdraw.
Yes cash can be tracked, down to a single note, but it's extremely hard and expensive, as most of us here with a little more knowledge understand. No big conspiracies, just a sobering appraisal of the state of the art.
Are there trackers on ATMs? ›
Preventative Maintenance: ATM GPS devices allow financial institutions to monitor the status and usage of their ATM machines efficiently. They can track the machines' locations, optimize cash replenishment routes, and ensure that ATMs are functioning properly.
What is the process of an ATM? ›
Using an ATM is simple. You need to insert your ATM card into the machine's card slot with the chip or magnetic stripe facing up and toward the machine. Next, enter your 4-digit PIN. Now, select the language and transaction type and follow the instructions on the screen to complete your transaction.
