ATM which stands for Automated Teller Machine is a device that is used to perform financial transactions by customers of banks and financial institutions.
Banks and other financial institutions provide a plastic card to their customers to perform financial activities like cash withdrawal, cash deposit, ATM balance check etc. at the ATMs. They place an ATM not just in their branches but also at various places. Various locations like airports, metro stations, shopping malls, offices, restaurants, etc. have an ATM making it easy and convenient for the banking customers to withdraw cash whenever needed without visiting the bank each and every time when there is a requirement for cash.
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Types of ATMs
There are two types of ATMs that are widely noted in the market.
- One is the basic ATM used to withdraw cash and perform balance check in the account
- The second one which is gaining popularity these days is the cash deposit machine which helps the customer to not just withdraw cash but also credit cash into the account by depositing in the ATM.
Working of ATMs
To withdraw cash or perform any activity at the ATM kiosks, an individual needs a debit card or credit card. The cardholder needs to set a PIN for the authenticate use of the debit card and credit card. ATMs display in the basic language English along with several other native languages according to the location of the kiosk.
When a cardholder visits an ATM, they need to insert the card into the machine. The chip reader in the machine reads the magnetic stripe and the EMV chip on the card and takes the account details like account holder name, account number, balance in the account, etc. prompts for the PIN. If the cardholder enters the correct PIN then he can proceed further else the activity will be cancelled.
→ ATM Balance Check
Not just Cash withdrawal, ATM is used for checking the balance in the account as well. Follow the below steps to perform an ATM balance check
- Select the Balance check option
- The balance in the account will be displayed on the screen and also collect the paper receipt (if you have asked for it)
- Note the balance
Some ATMs may ask for the PIN towards the end before dispensing the cash or displaying the balance. Most of the banks don’t charge fees for ATM balance enquiry. You can check ATM balance online as well through your bank’s online banking portal.
→ Cash Withdrawal at ATM
After entering the right PIN, the cardholder gets different options like cash withdrawal, balance check, etc. For cash withdrawal, you can proceed with the following steps,
- Select the cash withdrawal option
- Select the type of the account (in the case of a Debit card)
- Enter the amount you would like to withdraw
- Withdraw the cash from the machine
Read about: Cash withdrawal using a Credit Card
→ Cash deposit ATM
The cash deposit machine is similar to the regular ATM. For cash deposit, you may not need a debit or credit card. You need to enter the account number you want to credit cash to and deposit cash when prompted.
Points to be Noted
ATM kiosks have made simple banking transactions very simple and easy. Most of the ATM cards provided by banks or financial institutions can be used anywhere around the globe. But there are certain important things to be noted about the ATMs.
- The cash withdrawal at the ATM can come with a small fee. Most of the banks provide a benefit of free limited or unlimited cash withdrawal at their bank ATMs and charge a small fee if the card is used at any other bank ATMs.
- Usage of the ATM card that is the credit card or debit card at foreign locations can involve currency conversion fees.
- The information like account number, account balance, PIN, which is gathered by the ATM cannot be stored.
- Some banks and financial institutions charge a small fee for balance check at the ATMs
- Some ATMs swallow the card when inserted while at some kiosks, you just need to swipe the card on the card reader.
- While ATM balance check, some machines might not display the account balance on the screen and directly give out a paper receipt with account holder name, and balance printed.
- The cash withdrawal charges for a debit card is different from a credit card. Credit card cash withdrawal fee is high in comparison to the debit card.
- If the ATM does not dispense the cash but the money is debited from the account, contact the ATM operator bank and also your bank customer care immediately.
- Ensure you don’t share your ATM PIN with anyone.
ATMs have definitely reduced the traffic at banks and financial institutions. Some of the ATMs also provide a cardless withdrawal option where an OTP is sent to the account holder mobile and can proceed with the transaction. Keep the points in mind and make use of easy banking in the right way.
About the author
Nikitha is a Senior Analyst at MyMoneySouq.com. She has been writing about personal finance, credit cards, mortgage, and other personal finance products in the UAE. Her work on Mortgage loans has been featured by the GulfNews and other popular Financial Blogs in the UAE.
