ATM stands for Automated Teller Machine. It is a self-service machine that allows users to perform banking transactions such as withdrawing cash, depositing money, checking account balances, transferring funds, and more.
Here is how ATM works:
- Authentication: To use an ATM, a user must insert a valid ATM card into the machine. The ATM then prompts the user to enter their Personal Identification Number (PIN) to verify their identity.
- Transaction selection: After the user is authenticated, the ATM displays a menu of transaction options. The user selects the desired transaction type from the menu.
- Transaction processing: Once the transaction type is selected, the ATM connects to the user’s bank account to process the transaction. The ATM sends a request to the bank’s computer system to verify the user’s account balance and complete the transaction.
- Dispensing cash: If the user has requested a cash withdrawal, the ATM dispenses the requested amount of cash. The ATM counts the cash and dispenses it in the denominations requested by the user.
- Receipt printing: After the transaction is complete, the ATM prints a receipt for the user. The receipt shows the details of the transaction, including the transaction type, amount, date, and time.
- Card retrieval: Once the transaction is complete and the receipt is printed, the ATM returns the user’s ATM card.
ATMs have greatly simplified banking transactions and made them more accessible to people. They are available 24/7 and are located at convenient locations, providing users with easy access to their money.