Full form of ATM in banking|| Applications, pros, cons & related terms

Full form of ATM in banking




Full form of ATM in banking: Automated Teller Machine

ATM is a machine used by general people like you and me. For withdrawing money from our respective bank accounts. However, the credit card or debit card is the only medium to access and use these machines. Technically, it is cash giving machine - that is secured with our personal unique pins (ATM pins). A user is required to enter his/her pin before a successful transaction. Moreover, it has saved people's time in approaching banks for tiny and urgent transactions.


According to Investopedia, the first ATM ever made was in London - in the year of 1967. Those ATMs are so user-friendly that it took less than fifty years - to get them viral. These machines are widely used by people all across the globe. Even small and tiny isles also have installed ATMs in them. However, these automatic machines are mostly kept in high security, mostly equipped with CCTV cameras and a human security guard. Knowing the full form of atm in banking is worth it.




    APPLICATIONS OF AN ATM:

    1. Money transactions: ATMs are machines used to do successful money transactions. The machine's software is programmed in a manner that is easy-to-use and convenient for its users. The software is well secured. Providing users with the best experience. However, to withdraw money from any corner of the world.

    2. Info: The software used in such machines are top class. Hardly any virus can infect them. However, they are perfectly programmed to securely store a user's bank details. Mostly are secured with proper pins. However, after every successful transaction - the user is provided with a mini slip. Moreover, this slip contains all the details of their bank account. Indicating the amount being withdrawn, the amount remaining and the date of transaction.


    3. Money Transfer: Modern-day ATMs can also help its users regarding money transfers. One can easily transfer money from their's to any other without any risk of losing it. However, money transfer is mostly done via the process - known as a wire transfer. Above all, it is a convenient way to share your money via the internet. Knowing the full form of atm in banking is worth it.



    PROS OF ATM: 

    1. Easy transactions: An ATM is a machine used for doing easy transactions. User can easily withdraw money from their respective bank accounts easily. However, being an automated machine, the transaction process is easy and free of any pen paperwork. Making it a smooth process to perform too.

    2. Instant money: Being an internet-based automated system. ATMs are very smooth and convenient for common people. Moreover, it is easy to use and enables its users to withdraw money instantly. Above all, no dates, no queues, nothing. Instant money in our hands!


    3. Availability: These machines are widely available all around the globe. Being connected to the internet. It enables its users to check their account status anywhere. Every single colony have at least one ATM. Its wide availability makes people independent of dates.


    4. Secure: The ATM machine is secured with user's pin and one can withdraw money only if he/she has their own pin. The software used in such machines have high security in them and users can easily use them. However, ATMs store money securely - until any physical attempt is not made to take out cash from them.



    CONS OF ATM:

    1. Easy fraud: Criminals from the cyber world - find it easy to fraud such machines. ATMs are very much prone to fraud. Cybercriminals can steal a user's bank details from the machine's software - directly by placing micro cameras at the outlet - or can directly hack the system's software.

    2. Snatching money: ATMs are reservoirs of money. This makes them prone to robbery. There are certain people ( convicts) who tries to destroy the machine by physical attempts. And tries to snatch all the cash inside. The news is flooded with such daily cases.


    3. Risk of being dud: ATMs are machines that have the risk of getting dud. The cardholder in ATMs sometimes malfunctions. Leading to a card block or the card getting stuck. These cases are often spotted - resulting in card loss to the cardholder. However, their whole money in the account becomes obsolete.




    TERMS RELATED TO AN ATM:

    1. ATM software: It is defined as the software installed in an ATM. It is used to run the entire system to store users bank credentials. The software is programmed. In such a manner that it can easily show one's savings, current and checking slots. It helps the user to opt between these three slots.

    2. PIN: It is defined as the four-digit number linked with each and every bank account. The ATM user is required to enter that unique PIN before doing any kind of transaction. Failing to enter the right PIN number may avoid him/her using the account. 


    3. Credit Card: Refers to the rectangular card used for doing any kind of transactions through the ATM machine. It actually stores the important credentials of a bank account. A credit card is required to be entered in the inlet-making the machine aware of your presence. 


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