An automated teller machine, also known as ATM, is basically a computer with a built in telecommunication access facility device. An ATM mainly does the work of providing access to your bank account and thus allowing you to withdraw cash and too, without a cashier or a bank teller. The customer has to insert his card into the card reader slot of the ATM and then has to punch in certain computer keys and respond to the prompts on the screen. Within few minutes of your time, you start walking out with cash in your hand. Of course, the cash withdrawn is from your concerned bank account. Such is the level of modern banking facility.
An ATM, allows the customer of the bank to even check their account balances. You can also deposit cash in your account by using the automated teller machine. With the existence of the automated teller machines, banks have been able to lower their operating costs and they are now able to handle more banking transactions of the customers in a short time and just by using computers and a telephone line. By providing this ATM facility, the customer can get access to his funds during emergencies. For instance, today is a Sunday and being a bank holiday, the customer will not visit the bank. But he knows that he can fulfill the purpose of withdrawing his money on a Sunday just by visiting a nearby ATM.
So if you are suddenly short of cash and you need money, at that time, all you have to do is just visit the automated teller machine. These days, we can find the automated teller machines even in places like supermarkets, travel centers etc. With this ATM facility, funds are made available to you even when you are situated in another country. When you use a credit card for using money that you don't have, you will then receive a monthly bank statement, whereby you have to pay. You can also use a debit card. A debit card, instantly deducts money from your available saving account and thus provides you with hard cash. This cash is from your available bank balance. So if you don't have the required amount of cash available in your bank balance, the automated teller machine will prompt you saying "no sufficient balance".
These machines are connected to a host computer and from that point of contact, the line is diverted to the concerned bank. So when a banking transaction process has to happen, it is the host computer which is responsible for doing the main work of receiving and processing the data for executing the concerned banking transaction. Banks may use a normal telephone line or a leased line for connecting the automated teller machine with the host computer. Normally, it is the leased line connectivity that is preferred in order to handle more traffic efficiently. But leased line machine connectivity is more experience compared to dial up ATM facility.
The ATM has replaced the traditional way of banking service. The customer can now withdraw money from the bank in a matter of minutes. The most important thing to be considered is that the customer can withdraw his own money from the bank at his own convenient time. All this is possible with the help of the automated teller machine. As soon as the money is withdrawn from the automated teller machine, a mini receipt pops out from the ATM, giving current banking transaction details and his balance amount. Hence, he gets an update of his bank balance, which can be compared to a bank statement on a bank passbook. The automated teller machine is equipped with built in security features which is compatible with international standards and thus ensuring a risk free banking service.