Introduction
An automated teller machine (ATM), also known as automatic banking machine (ABM), Cash Machine, or Cash point, is a computerised
telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for
a cashier, human clerk or bank teller. On
most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip, that contains a unique card number
and some security information such as an expiration date. Authentication is
provided by the customer entering a personal identification number (PIN).
Using an ATM, customers can access
their bank accounts in order to make cash withdrawals, credit card cash advances, and check their account
balances as well as purchase prepaid cell phone credit. If the currency being
withdrawn from the ATM is different from that which the bank account is
denominated in (e.g.: Withdrawing Japanese Yen from a bank account containing
US Dollars), the money will be converted at a wholesale exchange rate.
Thus, ATMs often provide the best possible exchange rate for foreign travellers and are heavily used for this purpose
as well.
ATMs are placed not only near or
inside the premises of banks, but also in locations such as shopping
centers/malls, airports, grocery stores, petrol/gas stations, restaurants, or
any place large numbers of people may gather. These represent two types of ATM
installations: on and off premise. On premise ATMs are typically more advanced,
multi-function machines that complement an actual bank branch's capabilities
and thus more expensive. Off premise machines are deployed by financial
institutions and also ISOs (or Independent Sales Organizations) where there is
usually just a straight need for cash, so they typically are the cheaper
mono-function devices. In Canada, when an ATM is not operated by a financial
institution it is known as a "White Label ATM".
In North America, banks often have drive-thru lanes providing access to ATMs.
Many ATMs have a sign above them indicating the name of the bank or organization owning the ATM, and possibly including the list of ATM networks to which that machine is connected. This type of sign is called a topper.