What is ATM and What is the full form of ATM?– In this Article, we are going to write many facts about ATM, like What does ATM stand for, Full form of ATM, the meaning of ATM etc.,
We don’t think there is an adult who hasn’t used an ATM card or ATM Machine at all. In Past Days, In order to debit money from our bank account, we had to visit the bank. But Nowadays, Things has changed because of the availability of ATM machines.
Nowadays, We can visit our nearest ATM Machine with our ATM card provided by the bank and debt money instantly without feeling any form.
So, If you’re an ATM user or you’re a school/college student then you may have some questions about ATM. And, you gonna get all the answer to your questions.
What is ATM?
Basically, ATM is a machine which is used for the transaction of money from a bank account. The ATM machine is an Electro-Mechanical Machine which helps you to withdraw money from your personal Bank Account.
As we already know, before ATM was invented or Introduced we had to visit the home branch of our bank to withdraw money and the process of withdrawal was time-consuming because the process was human-based.
But, thanks to ATM machine and the ATM card the process of the transaction has become a lot easy.
The ATM machine made the transaction easy but the card which was invented to use on these ATM machines made the transaction easiest.
The Card we use on ATM machines is called ATM card in the easy language. But nowadays, many kinds of ATM cards have introduced like a debit card and credit card.
Full Form of ATM
If you have ever debate on this topic with your friends or someone, the chances are they might have told you a wrong Full form of ATM. They might have told you such full forms of ATM: Any Time Money, Anywhere Money and blah, blah. These all are Wrong full forms of ATM. So, What is the right full form?
The full of ATM is the “Automated Teller Machine”. It’s a very very simple name, you can easily bear it in your mind.
You will get surprised to know AMT is known by many names in the other part of the world or in other countries.
In Canada, ATM is known as ABM which is the short form of Automated Banking Machine. However, some people in Canada also point it as ATM.
In some other countries, ATM is known as – Hole in Wall, Mini Bank, Cash Machine, Anytime Money, Cashline, nibank, cash dispenser, and Tyme Machine.
Parts of ATM
As we know, ATM is all about money transactions and the money is the need of every human being either is educated or non-educated. So, ATM machine should be user-friendly and easy to operate for everyone, and It is.
To make it user-friendly and easy to operate the mechanics have used some common devices to build ATM (Machine).
Mainly two types of devices are used in ATM:
- Input Devices
- Output Devices
You must have to use ATM machines, and you should have noticed ‘ATM machine takes Inputs’. Noticed?
Firstly, You Insert the ATM Card then the ATM machine asks the amount of money you want to withdraw and PIN number. Right?
So, ATM machine uses Two Input Devices
1. Card Reader- Card Reader in an ATM machine is an Input device which reads data information or account information from the ATM Card.
You may think how does the card reader read account information just by Inserting or Swapping card into the ATM machine?
Well, you may have seen there is a magnetic chip placed on the back side of each and every ATM cards, these chip stores account information.
Guess what happens next?
Well, Let us tell you;
Once you swap or insert your debit or credit card (ATM card) in the machine then the card reader captures your account information and passes it to the server.
After that, if you make any transaction your account details get updated instantly. and if you use ATM machine for your transactions then no need somebody to update the record of your account information or transactions information.
2. Keypad- Keypad no needs any introduction in the era of computer and mobile phones. But We should let you know ‘why It is used in ATM Machines’.
Keypad in ATM machines is used to provide the details asked by the machine from the user. In order to make the transaction with the ATM machine, users have to provide some personal details like PIN and amount of money they want to withdraw.
1. Screen- Display Screen is an Important part of an ATM machine. It displays the account related information.
Work of Display Screen in an ATM machine-
- It Displays what kind of Input machine needs for the transaction.
- It Displays the account details. Like- Current Balance, Account Holder Name and etc.
- It Suggests you what button you need to press next.
2. Receipt Printer- After every transaction, the ATM machine ask you either you want the transaction receipt or not?
here, If you opt ‘Yes’ then You get a transaction receipt from the ATM machine.
The Transaction receipt contains the information of the current money withdrawal like Amount, Date and Time, ATM machine Location and etc.,
3. Speaker- Not all but most of the ATM machines contain a speaker, the speaker sounds when you press any key and also when your transaction gets complete It says “Your Transactions Completed Successfully” (This Feature is not available on every ATM machine).
4. Cash Dispenser- It is the most important part of an ATM machine because of It dispenses the cash.