ATM

An automated teller machine (ATM) is an electronic banking outlet that enables customers to perform financial transactions without direct human assistance. Most ATMs dispense cash, but many also allow balance inquiries, transfers between accounts, deposits, and bill payments. Access is typically via a bank card or mobile wallet linked to an account and secured with a Personal Identification Number (PIN). ATMs connect to bank networks and payment systems to authorize transactions, usually operating around the clock.

History and development: The first machines emerged in the 1960s, with widespread adoption in the 1970s. Early ATMs used magnetic stripes and relied on host computer systems. Over time, networks such as Cirrus/PLUS and interchange systems enabled cross-bank access. Modern ATMs use chip-enabled cards (EMV) or contactless mobile credentials and support encrypted communications, remote updates, and enhanced security features.

Hardware and software: An ATM consists of a secure enclosure, card reader, keypad, display, cash dispenser, and sometimes a receipt printer and check or deposit module. Software runs on a secure operating system and connects to the issuing bank’s host processor to validate accounts, deduct funds, or credit deposits. Some machines also recycle cash from deposits for subsequent withdrawals.

Network access and types: ATMs are operated by banks, financial networks, or independent providers. They come in off-site, on-site, drive-through, and cash-recycling configurations, and often include accessibility features such as audio guidance or large-print displays to assist users with disabilities.

Security and trends: Common threats include card skimming, PIN theft, malware, and jackpotting. Security measures include encrypted PIN verification, anti-skimming devices, cameras, and secure software updates. The trend toward contactless and biometric authentication, cash recycling, and mobile integration continues to shape ATM design.