ATM Full Form – Automated Teller Machine

ATM Full Form

ATM Full Form – Automated Teller Machine

ATM

An automated teller machine (ATM) or cash machine is an electronic telecommunications device.

The full form of ATM is Automated Teller Machine.

It had a profound influence on the industry as a whole.

ATM is an electro-mechanical machine that is used for making financial transactions from a bank account.

That enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, funds transfers, or account information inquiries, at any time and without the need for direct interaction with bank staff.

These machines are used to withdraw money from personal bank accounts.

The ATM machine can be of two types; one with basic functions where you can withdraw cash and another one with more advanced functions where you can also deposit cash.

The essence of this system was that it enabled the verification of the customer with the debited account without human intervention.

This makes banking process very easy because these machines are automatic and there is no need of human cashier for transaction.

A cash machine was put into use by Barclays Bank in its Enfield Town branch in North London, United Kingdom, on 27 June 1967.

ATMs are known by a variety of names, including automatic teller machine (ATM) in the United States (sometimes redundantly as “ATM machine”).

The idea of a PIN stored on the card was developed by a group of engineers working at Smiths Group on the Chubb MD2 in 1965 and which has been credited to James Goodfellow (patent GB1197183 filed on 2 May 1966 with Anthony Davies).

 

In Canada, the term automated banking machine (ABM) is also used, although ATM is also very commonly used in Canada, with many Canadian organizations using ATM over ABM.

ATM Full Form – Automated Teller Machine

 

This machine was inaugurated by English comedy actor Reg Varney.

In British English, the terms cashpoint, cash machine, cashline and hole in the wall are most widely used.

Other terms include any time money, cashline, tyme machine, cash dispenser, cash corner, bankomat, or bancomat.

Many ATMs have a sign above them indicating the name of the bank or organisation that owns the ATM, and possibly including the networks to which it can connect.

They used principles including Carbon-14 and low-coercivity magnetism in order to make fraud more difficult.

ATMs that are not operated by a financial institution are known as “white-label” ATMs.

Using an ATM, customers can access their bank deposit or credit accounts in order to make a variety of financial transactions, most notably cash withdrawals and balance checking, as well as transferring credit to and from mobile phones.

 

ATMs can also be used to withdraw cash in a foreign country. If the currency being withdrawn from the ATM is different from that in which the bank account is denominated, the money will be converted at the financial institution’s exchange rate.

Customers are typically identified by inserting a plastic ATM card (or some other acceptable payment card) into the ATM, with authentication being by the customer entering a personal identification number (PIN), which must match the PIN stored in the chip on the card (if the card is so equipped), or in the issuing financial institution’s database.

Both the DACS and MD2 accepted only a single-use token or voucher which was retained by the machine, while the Speytec worked with a card with a magnetic stripe at the back.

ATM Full Form – Automated Teller Machine

 

According to the ATM Industry Association (ATMIA), as of 2015, there were close to 3.5 million ATMs installed worldwide.

In the US patent record, Luther George Simjian has been credited with developing a “prior art device”.

The collaboration of a small start-up called Speytec and Midland Bank developed a fourth machine which was marketed after 1969 in Europe and the US by the Burroughs Corporation.

However, the use of ATMs is gradually declining with the increase in cashless payment systems.

 

The idea of out-of-hours cash distribution developed from bankers’ needs in Japan, Sweden, and the United Kingdom.

 

A Japanese device called the “Computer Loan Machine” supplied cash as a three-month loan at 5% p.a. after inserting a credit card.

The device was operational in 1966. However, little is known about the device.

Shepherd-Barron stated “It struck me there must be a way I could get my own money, anywhere in the world or the UK. I hit upon the idea of a chocolate bar dispenser, but replacing chocolate with cash.”

Adrian Ashfield invented the basic idea of a card combining the key and user’s identity in February 1962.

This patent is also the earliest instance of a complete “currency dispenser system” in the patent record. This patent was filed on 5 March 1968 in the US (US 3543904) and granted on 1 December 1970.

This instance of the invention is credited to the engineering team led by John Shepherd-Barron of printing firm De La Rue, who was awarded an OBE in the 2005 New Year Honours.

ATM Full Form – Automated Teller Machine

 

The patent for this device (GB1329964) was filed in September 1969 (and granted in 1973) by John David Edwards, Leonard Perkins, John Henry Donald, Peter Lee Chappell, Sean Benjamin Newcombe, and Malcom David Roe.

Specifically, his 132nd patent (US3079603), which was first filed on 30 June 1960 (and granted 26 February 1963).

 

This was granted UK Patent 959,713 for “Access Controller” in June 1964 and assigned to W. S. Atkins & Partners who employed Ashfield.

Transactions were initiated by inserting paper cheques issued by a teller or cashier, marked with carbon-14 for machine readability and security, which in a later model were matched with a six-digit personal identification number (PIN).

The roll-out of this machine, called Bankograph, was delayed by a couple of years, due in part to Simjian’s Reflectone Electronics Inc. being acquired by Universal Match Corporation.

Not only did future entrants into the cash dispenser market such as NCR Corporation and IBM licence Goodfellow’s PIN system, but a number of later patents reference this patent as “Prior Art Device”.

An experimental Bankograph was installed in New York City in 1961 by the City Bank of New York, but removed after six months due to the lack of customer acceptance.

ATM Full Form – Automated Teller Machine

 

The online version of the Swedish machine is listed to have been operational on 6 May 1968, while claiming to be the first online ATM in the world, ahead of similar claims by IBM and Lloyds Bank in 1971, and Oki in 1970.

The Bankograph was an automated envelope deposit machine (accepting coins, cash and cheques) and did not have cash dispensing features.

He was paid ten shillings for this, the standard sum for all patents. It was originally intended to dispense petrol but the patent covered all uses.

ATM Full Form – Automated Teller Machine

 

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