From Your inventory To Your Purse: How Atms Give You Your Money

Student Loans PNC - From Your inventory To Your Purse: How Atms Give You Your Money

Over the last half century, automated teller machines - or Atms as they're more generally known - have revolutionised the way we bank. Initially created simply to dispense cash, today's Atms perform a range of functions. In the 21st century, you can use an Atm to deposit cash as well as withdraw it from your account, check your balance and to top up your mobile phone. Many Atms also have multi-lingual capabilities and touch screen functionality, making them more relevant and beneficial in today's globalised world.

But how exactly do Atms work? Read on to find out more about this ground-breaking machine and how it gets your money from your account to your purse.

From Your inventory To Your Purse: How Atms Give You Your Money

How Atms work

From Your inventory To Your Purse: How Atms Give You Your Money

If you've just opened a bank account, or you're simply new to Atms, it's prominent to distinguish between their various components and buttons. The first step is to insert your bank card into the machine. It will then prompt you to enter your four-digit Pin - which will have been given to you by your bank. Provided you have entered your Pin correctly, you'll then be asked which function you'd like to complete: for instance, a cash withdrawal, a balance check or a mobile top up. If you're withdrawing cash - the most tasteless use of an Atm - you must specify how much you need. You'll hear the faint whooshing sound of notes being counted before your cash is dispensed. You can also opt to print a receipt, or sometimes a mini balance statement of your last few transactions.

Of course, the money doesn't magically fly from your bank account to the Atm. Essentially, each Atm is associated to a host processor. When you insert your card and Pin to request cash, the host routes the request to your bank or building society. Provided you have sufficient money, this triggers an electronic funds replacement from your bank account to the host's account. When the funds have been transferred, an approval code is sent to the Atm asking it to release the cash. The merchant running the machine will then be reimbursed by the host account soon after the transaction. It sounds like a complicated process, but to the buyer using the Atm it takes place in a matter of seconds.

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