About working of ATM
INTRODUCTION
One day when you go to market and you find a lacking of cash in your pocket,What you do in thatsuitation.The only way is to go to ATM(Automated teller machine) take your bank atm card and insert your card into the card reader of atm machine and by following some certain rules you got a cash in your pocket and you continue your shopping.
Lets comes to know that how this ATM machine works and make you ready for shopping without lacking of cash.
Difference between ATM card and check card
Today most of the banks start giving a check card which is also known as credit debit card to their customers. This check card are different from the ATM cards.
First of all the check cards are known as debit cards because by seeing the process of work done by debit card.This check card deducts cash from your savings bank account for your purchase done in a store or other place while ATM card gives you a cash for your purchasing done by you.The second difference is that ATM card is only use in a ATM machine and very fews store too but check card are use in all most of all the shop where credit card are accepted.
However some hotel and and some car services centre they uses a credit card only because the use of the credit card are easy and free from the risk when we compare to the check card or the debit card.
How Do ATMs Work
ATM is a type of a data terminal.It has two input and four output devices. When we connect ATM then it communicate through a host processor. The host processor is a type of a analogous to an ISP or internet service provider that is a path through which all the ATM of different bank networks become available to the bank customer who have ATM card.
Today most of the host processors either support leased-line or dial-up machines.That connect directly to the host processor with the help of a four-wire, point-to-point, dedicated telephone line is known as a leased-line machine whereas those connect to the host processor with the help of normal phone line with the help of ISP is known as Dial-up Machine.
Some of the independent service provider or a financial institution or a bank are own a host processor.
Parts of the Machine
As we know that a ATM machine has a two input devices these are card reader and a keypad:-
- Card reader –The function of the card reader is to captures your account information that is stored on the back side of your ATM that is a magnetic strip.Now the host processor uses this information to complete your transcation to the bank that you associate.
- Keypad – The function of the keypad is that it can be uses to select type of transaction,amount of your cash and it also used to type your personal pin on the ATM machine screen.
There are four type of output devices these are speaker, display Screen, receipt printer and cash dispenser.
- Speaker – It function is to provides the customer with a audio feedback when a customer press a key.
- Display screen – It function is to give the direction to the customer that include stet by step process of the transaction. Leased-line machines use a monochrome or the color CRT display whereas Dial-up machines use a monochrome or the color LCD display.
- Receipt printer – It function is to provides the customers a paper receipt of the transaction made by him.
- Cash dispenser – It function is to give a cash after transaction is complete.This is also known as the heart of an ATM.
Sensing of Bills
In a cash dispenser there is a mechanism that is known as cash-dispensing mechanism.It has an electric eye that function is to count each bill. After the counting of the bill all the information of a particular transaction is recorded in a journal. Now the information that is stored in a journal is printed out by a receipt printer and the copy of that transaction is stored in a hard disc of a machine for a two years.When the customer having any dispute about any of the transaction he or she take out the printout and then contact to the host processor.The host processor is responsible for resolving all the dispute that is created during the transaction.
The cash-dispensing mechanism has a sensor along with the electric eye that count the bills it function is to evaluates the thickness of each bill. In a case of two bill struck each other and try to come out then it make a direction of that two bill that stuck each other to the reject bin.
Machine also record the numbers of the reject bill for future.When the ratio is high it indicate that there is a problem in a dispenser mechanism.
Settlement Funds
When a customer go to the ATM and perform ATM transaction, Then there is a need of specific information with the help of card reader and the keypad. Now the ATM carry this information to the host processor, which carry the transaction request to the customer’s bank. When we request a cash then the host processor makes an electronic fund transfer that take place from the customer's bank account and carry to the host processor's account. When the funds are successfully transfer to the host processor's bank account then the host processor sends an approval code that help to give cash to the customer through the cash dispenser. That why when you request for a cash then the money moves electronically from your bank account to the host's account and you got a cash in your hand.
ATM Security
For security of your ATM you must keep your personal identification number (PIN) and other information secure and safe.There are lot of thing keep in your mind while you go to ATM machine.
Step for keeping your pin secret:-
- Do not write your ATM PIN on any of the paper. Try to keep your ATM pin in your mind .IF necessary keep your pin in a safe place not in your wallet or purse.
- Try to create your pin such that you may easily remember. Always change you ATM pin with a regular interval.
- Does not give a telephone number and birth date and house number as your ATM pin.
Tip for safe usage of ATM:-
- First of all keep your ATM in a purse and wallets and try to keep away from scratch and bent.
- Not to take out your ATM card outside the ATM room. You may attach by other person too .
- You always try to Stand directly in front of the ATM keypad when you are typing your personal PIN.
- When your transaction is complete you must take your receipt, your card and money.
- If you come ATM by your bike or car you keep this closer to the ATM so that you easily go from there in a safe way.
- Do not leave your car running while using a walk-up ATM. Take your keys with you and lock the doors before your transaction.
- If you find something wrong in a ATM machine then you cancel your transaction and go to the bank and ask this for your problem to the bank authority.
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