what is ATM, advantages and disadvantages ATM

ATM

What Is an Automated Teller Machine (ATM)?

An automated teller machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the aid of a branch representative or teller. Anyone with a credit card or debit card can access cash at most ATMs.

ATMs are convenient, allowing consumers to perform quick self-service transactions such as deposits, cash withdrawals, bill payments, and transfers between accounts. Fees are commonly charged for cash withdrawals by the bank where the account is located, by the operator of ATM, or by both. Some or all of these fees can be avoided by using an ATM operated directly by the bank that holds the account.

ATMs are known in different parts of the world as automated bank machines (ABM) or cash machines.

Understanding Automated Teller Machines (ATMs)

The first ATM appeared at a branch of Barclay's Bank in London in 1967, although there are reports of a cash dispenser in use in Japan in the mid-1960s. The interbank communications networks that allowed a consumer to use one bank's card at another bank's ATM came later, in the 1970s.

Within a few years, ATMs had spread around the globe, securing a presence in every major country. They now can be found even in tiny island nations such as Kiribati and the Federated States of Micronesia.

Although the design of each ATM is different, they all contain the same basic parts:

• Card reader: This part reads the chip on the front of the card or the magnetic stripe on the back of the card.
• Keypad: The keypad is used by the customer to input information, including personal identification number (PIN), the type of transaction required, and the amount of the transaction.
• 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, consumers can request receipts that are printed here. The receipt records the type of transaction, the amount, and the account balance.
• Screen: The ATM issues prompts that guide the consumer through the process of executing the transaction. Information is also transmitted on the screen, such as account information and balances.

Full-service machines now often have slots for depositing paper checks.

ADVANTAGES OF ATM

·       Always Provide Services

The first pros in the list of advantages of an ATM is that it is always available to use. We can use it 24/7 whenever we need the cash.

·       Reduce the workload

The second good point about the automated teller machine reduces the workload from workers and makes auto transactions.

·       Fast Transaction

The best thing about ATMs is the fastest way of a transaction between account holders and machines. No need to wait outside the bank or inside the bank.

·       Very Useful Machine to Traveler

You are the traveler and out of cash just bring out your debit or credit card and swipe it. Money is in your hand within a few seconds, it’s all just because of the advantages of credit cards.

·       New Currency Notes

Use an ATM and withdraw the fresh and new currency notes. I think new notes are the best gift for little kids.

·       Privacy in Transaction

This is the privacy of your account and privacy from other people. Using an ATM only you know the actual amount of your bank statement. Because there is nobody inside with you in the cabin.

·       ATM is Convenience

In this age of modern technology, internet banking ATMs are available in all the convenience places such as Air Ports, Railway Stations, Bus Stops, and many more places like that.

·       ATM is Time Saving Pros

One of the best benefits I found in this list of advantages of automated teller machines are time-saving. It saves your time and other people’s time.

·       Low Transaction Cost Pros

The last advantage of ATMs I am going to share with you is the low transaction cost. If you are using the same machine of the bank where you have your bank account then it will never deduct any extra amount. 

 

 DISADVANTAGES OF ATM

·       Not available in Rural Areas

The first drawback What I found about automated teller machines is that they are not available in rural areas and not available in the villages.

·       Charges Fee Cons

If you are using the machine of the other banks or in another country so it will deduct a little bit of a high fee for withdrawing money.

·       Capture ATM Card

This point is done with me in my real life when I withdraw money and the machine captured my debit card and also deducted my money and never received the money. It is a long story of what happened to me after that. 

·       Cash Withdrawal Limitation

I have now three cards and all the cards have different limitations of withdrawing the money. 

·       Frauds and Hacking Cons

Another con of automated teller machines in the list of disadvantages of ATM. is the frauds and hacking. You must keep your card number and pin code secret and never tell anybody. There are a lot of cases on the internet of hackers and frauds using your card data.

·       Offline / System Down

Disadvantages of ATM are not ended there another point is limitations of system buy or system down and sometimes show the machine is not for use now.

·       Forgot the PIN

Forgot the PIN of your card, you can’t use an ATM. Must reset your PIN and then you can use it.

·       Run out of Cash Cons

On government vacations, the bank staff is not on duty. Using too many ATMs by the people runs it out of cash.

·       Risk of Robbery

Using the automated teller machine at night time you must be careful. Because there are no police and other security staff at that time to protect you. Thieves can rob you and take your money. 

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