automated teller machine

automated teller machine (ATM), device used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. The strip contains an identification code that is transmitted to the bank's central computer by modem . To prevent unauthorized transactions, a personal identification number (PIN) must also be entered by the user using a keypad. The computer then permits the ATM to complete the transaction; most machines can dispense cash, accept deposits, transfer funds, and provide information on account balances. Banks have formed cooperative, nationwide networks so that a customer of one bank can use an ATM of another for cash access; by 1997 there were more than 160,000 ATMs across the United States. Some ATMs will also accept credit cards for cash advances. The first ATM was installed in 1969 by Chemical Bank at its branch in Rockville Centre, N.Y. A customer using a coded card was dispensed a package containing a set sum of money.

automated teller machine (ATM) A computerized machine usually attached to the outside wall of a High-Street bank or building society that enables customers to withdraw cash from their current accounts, especially outside normal banking hours. The machines may also be used to pay in cash or cheques, effect transfers, and obtain statements. They are operated by cash cards or multifunctional cards in conjunction with a PIN. ATMs are often known colloquially as cash dispensers.