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• Introduction 2-3
• What is ATM 4
• How does it work 5
• ATM architecture 6-9
• ATM in Business 10
• ATM Application 11
• ATM Security 12
• ATM Problem 13-14
• Advantages & Disadvantages 15
• ATM Statistics Graph 16-17
• Market demand in Bangladesh 18
• Conclusion 19


With our ATM cards, you can access and carry out most of your personal banking
transactions 24-hours a day, 365 days a year.

With an ATM card, you can perform a wide range of transactions through our Automatic
Teller Machines (ATM) at any time that is convenient to you, day or night

You can
* Withdraw cash from your accounts;
Deposit cash or cheques into your accounts;
Transfer Funds between your own accounts;
Check your balance;
Change your PIN;
View transactional history;
Order statements/cheque books;
Send in other instructions to the bank via the mail deposit system;
Make payments to other HSBC customers;
We also offer ATM cards against your foreign currency accounts. With this card, you can
withdraw cash from your accounts at 500,000 ATMs worldwide

Daily Transaction Limit

• To cap your potential risk exposure in the event of card loss, there is daily cash
withdrawal limit of BDT 20,000 for regular Savings and Current accounts and BDT
50,000 for Power Vantage accounts. The minimum amount you can withdraw is BDT
500 per transaction.
• You can transfer up to BDT 100,000 per day between accounts.

Report a lost card

You can report your lost or stolen ATM card 24 hours a day by any of the following ways
• Through our Phone banking services
• By calling ATM Hotline 01199-805825

What is ATM?

Before the discussion of wireless ATM can begin, the concept of ATM in general needs to be
discussed. ATM, or by its more formal name Asynchronous Transfer Mode, is a basic packet-
based networking system designed for the simultaneous transmissions of voice, video, and
data. In the mid 1980s, the major telecommunication companies decided that they needed a
new network to handle the surge of video and data, along with voice, traffic being sent over
their existing networks. From this, the concept of ATM was born. From an increasing need to
handle data traffic, which is inherently packet-based, as well as voice traffic, ATM was
designed to work as a packet-switched network. In a packet-switched network, all traffic is
broken into small pieces, which are easier to transmit than one large chunk of data. The
problem with using this type of network design for ATM is that the old telephone network is
circuit-switched, or in other words creates a physical direct connection between the source
and destination during the transmission. ATM, therefore, is designed so that it can handle
circuit-switched traffic on its packet-switched backbone. To accomplish this, ATM creates
virtual circuit connections over the packet-based network between the source and the
destination. These virtual circuit connections provision a set number of network resources
dedicated to the connection between a specific source and destination, making it appear to the
old telephone network that a circuit connection is established. This allows an ATM network
to guarantee the same or greater quality of service for voice traffic as the old telephone
network does, while at the same time providing a much greater level of service for data and
video traffic than was previously available.


ATM (Automated Teller Machine) is a computer. It has a small display and something similar
to a keyboard (even if it doesn't look like one). It runs a program that is usually written by the
bank. The program could do anything but banks usually follow a pattern.

Most banks start by asking for the language. They then ask you to insert your card.

This card has a magnetic strip on the back that it reads information about your bank account
(sort of like a diskette on a PC). It uses this information to look up your information and
decide what to do next. Usually this is to have you enter your password. After that, it's up
to the program to decide what to do next.

As for the equipment, banks usually buy the ATM as a single piece but it is actually made up
of components. There are several different computer types but let's discuss this as if it were a
PC. There would be several PCI slots. Each PCI slot would have a specialized card to support
the equipment. One slot would be used for the modem (or network card) so it can be managed
from the main office and can obtain information it needs from the central computer where
most information is kept. Another slot would be for the card reader where you stick the ATM
card in. The money dispenser would be another. I suspect that the deposit slot is part of the
money dispenser. The display and keypad probably use the keyboard and display connectors

ATM Architecture

“Good” ATM Classes

Account Cash card Consortium

ATM Customer

Cashier Transaction
Bank Station

Bank Central
Computer Computer


a single account in a Bank against which Transactions may be applied. Various

Account typeset least checking savings. A Customer may hold more than one account
a station where Customers may use Cash Cards for ID when they wish to
ATM perform a Transaction. ATM gathers information, sends it to the" Central
Computer for validation & processing, and dispenses Cash. ATMs do not
operate independent of the network.

Bank a financial institution which holds Accounts for customers and issues Cash
Cards authorizing access to accounts.

the computer owned by a Bank and interfacing with the ATM network and the
Bank Bar This own Cashier Stations. A Bank may actually have its own internal
Computer network of computers to process Accounts, but we are only concerned with the
one that talks with the ATM network.

a card assigned to each Customer authorizing access to accounts: via an ATM.

Cash Each contains a bank code and a card number, most likely coded in accord
card with national credit card 'standards. The bank code identifies the Bank in the
Consortium. The card number determines the Accounts the card may access.
Each cash card is owned by a single Customer, but multiple copies of it may
exist, so simultaneous use from different ATMs must be considered.

a Bank employee authorized to enter Transactions into a Cashier Station and
Cashier accept and dispense cash and checks to Customers. Transactions, cash and
checks handled by each cashier must be logged and properly accounted for.

a station where cashiers enter transactions for customers. Cashiers dispense

Cashier and accept cash and checks; the station prints receipts. The cashier station
station communicates with the bank computer to validate and process the

Central a computer operated by the Consortium to dispatch Transactions between

Computer ATMs and the Bank Computers. The central computer validates bank codes
but does not process Transactions directly.

an organization of Banks which operates the ATM network. The network

Consortiu handles only Transactions for banks in the consortium.
the holder of one or more Accounts in a Bank. A customer may • consist of
Customer one or more persons or corporations; the correspondence is not relevant to this
problem. The same person holding an Account at a different Bank is
considered a different customer.

a single integral request for service w.r.t. the Accounts of a single

Transaction Customer. While we have specified that an ATM need only dispense
cash, we should not preclude the printing of checks or the
acceptance of cash or checks in the future. We may also want to
provide for operation on Accounts of different Customers, tho' it is
not required yet. The different operations must balance properly.

ATM in Business

ATM business Investment opportunities or ATM franchise opportunities are among the most
secure, rewarding, and easy business investment avenues available to the average business
person. For anyone Joking for a way to increase supplemental income with little work and
minimal investment, an ATM Machine investment simply cannot be beat.

Investors in the stock market consistently gamble. Stocks go up, and they come down. When
they go down, they often take the investors' money with them. With an ATM business
investment, the startup costs are minimal and the rewards are almost guaranteed. That alone
makes automated teller machine investments very appealing.

The aspect of an ATM business investment that is most fulfilling is the fact that the income is
consistent and residual. An ATM placement in a good location with heavy traffic will
consistently make a profit, and that means a constant flow of revenue into your bank account
with very little work involved.

When you're seeking a business investment opportunity, do you invest in a short term
business in a small market, or a long term business that almost every American uses?
Consider that most Americans have ATM cards, and most Americans withdraw funds from
time to time. That means most Americans have use for a well-placed ATM machine - and
ATM machines will be a necessity in life for a very long time to come. That makes an ATM
business investment among the smartest business investments any business person can make.

A great way to get started is to get multiple quotes from a service such as ATM Machine
Quotes, which will allow you to compare offers from multiple vendors.

ATM Application

Quatech Products Used: QSCLP-100 four port RS-232 Serial Universal Low Profile PCI

ATMs are based on a PC embedded at the center of the machine. This PC connects to
multiple serial peripherals such as keypads, cameras, printers, cash dispensers, card readers,
touch screens, etc., as required by the particular application. This serial. Connection is made
via multiport serial cards or adapters which can provide up to 16 ports each. Low Profile PCI
boards are a particularly good choice for these applications, because their small size is
advantageous to the often limited space available in a typical ATM. The diagram below
depicts an ATM implemented with Quatech's QSCLP-100 four port RS-232 Serial Universal
PCI Low Profile Board.

ATM Security

• All PIN encryption activity should take place on an Encrypting PIN pad (EPP) or PIN
Encryption Device (PED) to prevent the compromise of a PIN in the clear at a
• ATM PIN encryption should be triple DBS and DSS compliant.
• PIN blocks should never be stored in ATM log files.
• Personal Account Number (PAN) should be truncated and protected in ATM logs.
• Secure remote access controls must be established for all ATMs.
• Anti virus and Malware detection systems should be installed,, updated and tested
frequently. Insist upon a vendor's written result of each test.
• Segment ATM network traffic from other network activity.
• ATM vendor supplied default passwords must be re-set with unique password.
• Make sure that core ATM processing application do not store exploitable information
like magnetic stripe data, PANs or PIN blocks. Core processing application should be
PCI? DDS and in some even cases PA-DSS compliant.

Automated Teller Machines Problem

This guide addresses the problem of robbery of people using automated teller machines
(ATMs) and night cash depositories. The guide begins by describing the problem and
reviewing factors that increase the risks of ATM robbery. It then identifies a series of
questions that might assist you in analyzing your local ATM robbery problem. Finally, it
reviews responses to the problem and what is known about these from evaluative research
and police practice.
# Robberies at night cash depositories, at which cash can only be deposited, not withdrawn,
are sufficiently similar to ATM robberies to make most of the responses similar. Hereafter,
reference will be made only to ATMs, but unless otherwise noted, all information applies
equally to night cash depositories.
ATMs were first introduced in the mid-1960s in the United Kingdom, and in the late 1960s in
the United States. The number of ATMs has increased dramatically since. ATM users now
annually conduct billions of financial transactions, mostly cash withdrawals. Where once one
would find ATMs only on bank premises, today one finds them almost everywhere-along
sidewalks and in airports, grocery stores, shopping malls, nightclubs, and casinos. There are
even mobile ATMs that can be set up at disaster sites or temporary entertainment venues like
fairgrounds. Bank customers have come to expect that they can access their funds virtually
any time and any place. To some extent, they have traded safety for convenience. ATM
services are highly profitable for banks, and banks aggressively market the use of ATM cards.
# ATMs that are off bank premises are usually more profitable for banks because they attract
a higher volume of non-bank customers, who must pay service fees. Unfortunately, customers
using off premise ATMs are more vulnerable to robbery.
# It has been estimated that in 1993, banks earned $2.55 billion in revenue from ATMs, saved
$2.34 billion in wages for tellers and netted a profit of $2 billion (Deitch 1994; De Young
# With a little effort, most local police agencies could compile data on ATM robberies, but
until the FBI's National Incident-Based Reporting System becomes standard, the Uniform
Crime Reports will not provide national data on the problem.

# Most of the figures cited in the literature on ATM crime are from two surveys, conducted by
the Bank Administration Institute and the American Bankers Association in 1987 and 1989,

Related Problems
Robbery at ATMs is only one of several related problems the police must address. Other
problems that call for separate analysis and responses, but which are not addressed in this
.guide, include:
• robbery of couriers who fill ATMs with cash,
• theft of personal identification numbers (PINs) (including theft by "shoulder
• theft by electronic data interception,
• theft by fraudulent electronic transactions,
• theft of money from ATMs by bank/ATM service employees,
• burglary of ATMs (including theft of entire ATMs),
• presence of homeless people sleeping in ATM vestibules,
• vandalism of ATMs, and
• fraudulent use of ATM cards obtained from customers through dummy ATMs that
keep their cards.

Advantages and Disadvantages of ATM
• ATM Advantages
• ATM supports voice, video and data allowing multimedia.
• Single network.
• High evolution potential, works with existing, legacy technologies
• Provides the best multiple service support
• Supports delay close to that of dedicated services
• Supports the broadest range of burrstone’s, delay tolerance and loss performance
through the implementation of multiple QoS classes
• Provides the capability to support both connection-oriented and connectionless traffic
using AALs
• Able to use all common physical transmission paths like SONET.
• Cable can be twisted-pair, coaxial or fiber-optic
• Ability to connect LAN to WAN
• Legacy LAN emulation
• Efficient bandwidth use by statistical multiplexing
• Scalability
• Higher aggregate bandwidth
• High speed Mbps and possibly Gbps

ATM Disadvantages
• Flexible to efficiency's expense, at present, for any one application it is usually
possible to find a more optimized technology
• Cost, although it will decrease with time
• New customer premises hardware and software are required Competition from other
technologies -100 Mbps FDDI, 100 Mbps Ethernet and fast Ethernet
• Presently the applications that can benefit from ATM such as multimedia are rare
The wait, with all the promise of ATM's capabilities many details are still in the
standards process

ATM Statistics Graph

First Cash Dispenser:

1969 - Chemical Bank, Long Island, NY

First Multi-Function ATM:

1971 - Citizens & Southern National Bank, Atlanta, GA

US ATM Population Summary

2003 371,000 238,000 64.15% 133,000 35.85%

2002 352,000 220,100 62.53% 131,900 37.47%
2001 324,000 193,000 59.57% 131,000 40.43%
2000 273,000 156,000 57.14% 117,000 42.86%
1999 227,000 117,000 51.54% 110,000 48.46%
1998 187,000 84,000 44.92% 103,000 55.08% 1
1997 165,000 67,000 40.61% 98,000 59.39%
1996 139,134 51,507 37.02% 87,627 62.98% J

The report clearly shows that 80.43% of the US ATM population increase (1996 - 2003)
occurred not in banks, but in the non-bank off-premise retail sector. During that period,
total US ATMs increased by 231,866 units, non-bank off-premise retail ATMs grew by
186,493 units, and bank ATMs increased only by 45,373 units.

Change reflects 2003 totals compared to 1996 base year

Source: American Bankers Association (ABA) 2004 ATM Fact

Total US ATM Transactions

2003 10.8 billion

2002 10.5 billion
2001 13.6 billion
2000 12.8 billion
1999 10.8 billion
1998 11.2 billion
1997 10.9 billion
1996 10.7 billion

Monthly Transaction Average Per US ATM
2003 2432
2002 2509
2001 3494
2000 3919
1999 3997
1998 4973
1997 5515
1996 6399

Top Five ATM Owners

Bank of America 14200

American Express 7100
U.S Bancorp 6663
Wells Fargo 6353
Wachovia 4560

Market demand in Bangladesh

The Automated Teller Machine (ATM) is one type of innovation that can mechanically accept
deposits, issue withdrawals, transfer funds between accounts, collect bills, and make small
loans. This study aims at investigating the satisfaction levels of HSBC ATM cardholders
(both staff and non-staff) with respect to various aspects (promptness of card delivery, the
performance of HSBC ATM, the service quality of ATM personnel etc.) of using HSBC ATM
arid their opinions on various other related issues (such as positive and inconvenient features
of HSBC Staff, recommendation to improve the service quality etc.). This study is one type
of exploratory research using convenience sampling technique where samples have been
selected on the basis of convenience. Thus, projecting data beyond the sample is statistically
inappropriate. This study only provides information for analyzing scenario of HSBC. Though
the samples were selected on a convenience basis and it may not represent the whole
population, but still it is no less important for the HSBC management to consider the
recommendations with due care for better customer service staff for being in a better
competitive position.


Wincor Nixdorf s ATM marketing software product is the solution for banks and lADs
seeking to boost revenue and build up a customer relationship using their existing ATM
network. With its quick and easy campaign management the option of selecting target group,
time lines and location as well as the opportunity to implement direct marketing and
advertising campaigns, this software can transform ATMs into revenue-generating profit