How ATM Works Technically:a machine that dispenses cash or performs other banking services when an account holder inserts a bank card.

What is ATM Networking?

The internet service provider (ISP) also plays an important role in the ATMs. This provides communication between ATM and host processors. When the transaction is made, the details are input by the card holder. This information is passed on to the host processor by the ATM machine. The host processor checks these details with authorized bank. If the details are matched, the host processor sends the approval code to the ATM machine so that the cash can be transferred.`

What Types of ATM Machines?

Most of the host processors can support either leased line or dial up machines

  • Leased line ATM machines
  • Dial up ATM machines

What is Leased Line ATM Machines?

The leased line machines connect direct to the host processor through a four wire point to point dedicated telephone line. These types of machines are preferred in place. The operating cost of these machines is very high.

What is Dial Up ATM Machines?

The dial up ATMs connects to the host processor through a normal phone line using a modem. These require a normal connections their and their initial installation cost is very less. The operating cost of these machines is low compared with leased line machines.

ATM Security

The ATM card is secured with PIN number which is kept secret. There is no way to get the PIN number from your card. It is encrypted by the strong software like Triple data Encryption Slandered.

Understand Automated Teller Machine Working Principle

The automated teller machine is simply a data terminal with two input and four output devices. These devices are interfaced to the processor. The processor is heart of the ATM machine. All the ATM machines working around the world are based on centralized database system. The ATM has to connect and communicate with the host processor (server). The host processor is communicating with the internet service provider (ISP). It is the gateway through all the ATM networks available to the card holder.
When a card holder wants does an ATM transaction, user provides necessary information through card reader and keypad. The ATM forwards this information to the host processor. The host processor enters the transaction request to the cardholder bank. If the card holder requests the cash, the host processor takes the cash from the card holder account. Once the funds are transferred from the customer account to host processor bank account, the processor sends approval code to the ATM and the authorized machine to dispense the cash. This is the way to get the amount on ATMs. The ATM network is fully based on centralized database environment. This will make life easer and secured the cash.

How ATM Works Technically

What is Advantages of Automated Teller Machine?

The ATM provides 24 hours service
The ATM provides privacy in banking communications
The ATMs reduce the work load banks staff
The ATM may give customer new currency notes
The ATMs are convenient to banks customers
The ATM is very beneficial for travelers
The ATM provide services without any error

Features of Automated Teller Machine.

  • Transfer funds between linked bank accounts
  • Receive account balance
  • Prints recent transactions list
  • Change your pin
  • Deposit your cash
  • Prepaid mobile recharge
  • Bill payments
  • Cash withdrawal
  • Perform a range of feature in your foreign language.

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