Workin

g Of
ATM

Introducti
on

An automated teller machine

(ATM) is a computerized device that
provides the customers of a
financial institution with access to
financial transactions in a public space
without the need for a 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 smartcard
with a chip, that contains a unique
card number and some security
information. Security is provided by

History of
ATM

It was first developed and

built by Luther George Simjian
and installed in 1939 in
New York City by the
City Bank of New York, but
removed after 6 months due
to the lack of customer
acceptance.
ATMs paused for over 25
years
After that De La Rue
developed the first electronic
ATM, which was installed first
in Enfield Town in North
London, United Kingdom on
27 June 1967 by Barclays Bank
, invented by

The first ATMs

accepted only a singleuse token or voucher,
which was retained by
the machine.
The idea of a PIN
stored on the card was
developed by the British
engineer James
Goodfellow in 1965.
Don Wetzel invented
the first networked ATM
in 1968 in Dallas, Texas.

Worki
ng

CPU (to control the user interface

and transaction devices)
Magnetic and/or Chip card reader (to
identify the customer)
PIN Pad (similar in layout to a
Calculator keypad)
Display (used by the customer for
performing the transaction)
Function key buttons (usually close
to the display) or a Touchscreen (used
to select the various aspects of the
transaction)
Record Printer (to provide the
customer with a record of their
transaction)
Vault (to store the parts of the
machinery requiring restricted access)

ATM will connect to the networks through

processing centre and then to the cardholders
bank.
If there are sufficient funds in the ATM
cardholders account for the withdrawal request,
the transaction will be completed.
The ATM receives the authorization and
dispenses the cash requested.
ATM cards use processors to connect to there
various ATM networks. You can see network logos
(also known as bugs) on the back of an ATM card.
Here are 4 examples of network bugs as MAC,
PLUS, CIRUUS, STAR.

Calculation
for number
of notes

Assumptions
There are Rs 1,000/-,Rs
500/-,Rs 100/-, notes are
available in the ATM
We have to enter the
desired money in the multiple
of 100.

Step 1: Start
Step 2 : Store desired amount in int N
Step 3 : Divide N by 1000 and store in int X
Step 4 : No of Rs 1000 notes = X
Step 5 : N=N-X*1000
Step 6 : Divide N by 500 and store in int X
Step 7 : No of Rs 500 notes = X
Step 8 : N=N-X*500
Step 9 : Divide N by 100 and store in int X
Step 10 : No of Rs 100 notes = X
Step 11 : N=N-X*100
This process goes on until N=0
Step 12 : End

Advanta
ges

An ATM allows you to do the same

things as you would at a bank.
It also allows you to withdrawal
money even if you are not a customer
of that bank at nominal surcharge.
It allows you to withdrawal 24 * 7.
ATM makes transaction easy and
time saving process.
Besides withdrawal we can do a lot
with ATMs as transfer funds, request
for a cheque book, mini statement,
deposits cheque etc.

Disadvant
ages

If something goes wrong with machine

then it may uphold your transaction.
ATMs are not very safe to withdrawal a
big sum of money.
An ATM can replace 4-5 persons(approx)
for the same job that enhance the problem
of unemployment.

THANK
YOU

Presented By:
Ritesh Kumar Mishra