ATM Full Form

ATM Full Form

What is the full form of ATM?

The full form of ATM is Automated teller Machine, it is an electro-mechanical machine which consists of automated banking platforms that allow clients to perform smooth transactions without the assistance of a branch representative or teller. A debit card or credit cardholders should be able to withdraw cash at most ATMs.

ATMs are beneficial, allowing clients to conduct fast self-service transactions such as cash withdrawals, deposits, bill payments and account-to-account transfers. Fees are usually paid out for cash withdrawals by the bank where the account is held, by the ATM operator, or both. Some of these charges can be avoided by using an ATM which is operated directly by the account holding bank.

ATMs are recognized in different parts of the world as ABM (Automated Bank Machines), or Cash Machines.

History of ATM

The first ATM turned up at a Barclays Bank branch in London in 1967, though there are records of a cash dispenser in Japan in the mid-1960s. The interbank transaction that allowed a customer to use one bank’s card at another bank’s ATM in the 1970s.

ATMs had spread across the globe in just a few years, establishing a foothold in every major country. They can now be found in small island nations such as Kiribati. Currently, more than 3.5 million ATMs are in operation worldwide.

Various Types of ATM

There are mainly two types of ATMs.

  1. Basic units permit only cash withdrawal by clients and provide updated account balance.
  2. The more complicated machines in which you can also deposit cash, facilitate credit line payments and transfers, and access account details.

Basic Parts of ATM

The ATM is easy to use. It contains input and output tools, allowing people to deposit or withdraw money comfortably. Underneath are the essential output and input devices of an ATM.

Input device

Card reader – Card reader recognizes the card data stored on the ATM card in the magnetic stripe, which is located on the back. The account details are collected by the card reader and sent to the server, once the card is inserted in the specified location. Cash dispenser allows the cash to be dispensed based on account information and the commands obtained from the user server.

Keypad – Keypad helps the user with the requested data from the machine such as personal ID number, cash amount, receipt needed or no needed and other information. In the encrypted form, the PIN is sent to the server.

Output Devices

Speaker – Speaker is available in the ATM to generate the audio input when a button is pressed.

Display Screen – Displays details on the screen concerning the transaction. It indicates the steps of cash withdrawal, one by one in order. The screen may be CRT or LCD.

Receipt Printer – A receipt shows you information about the transactions printed on it. It informs you of the time and date of the transaction, balance and withdrawal amount, etc.

Cash Dispenser – Cash dispenser is the ATM ‘s essential output tool as it hands out the cash. The highly accurate sensors provided in the ATM allow the cash dispenser to administer the appropriate cash amount as the consumer needs.

Working Principle of ATM

You need to insert plastic ATM cards inside the ATMs to start ATM operating. You have to drop your cards on some machines and some machines require card swapping. These ATM cards contain your account details and other security information on the magnetic stripe. When you drop or swap your card, the computer receives details about your account and requests for your PIN No. Once the authentication is valid, machines will permit cash transactions.

Functions OF ATMs

  • Deposit of cash
  • Withdrawal of cash
  • Transfer of cash
  • Accounts details
  • Mini statement
  • Regular payment of the bill
  • Account balance details
  • Recharge of prepaid mobile
  • Change the pin code

Advantages of ATM

  • ATM service is available for 24 ✕ 7.
  • It reduces the work pressure on bank staff.
  • For travellers, ATMs are more useful.
  • ATM gives service without any error.


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