How does ATM work? | History of ATM | How Many Types Of  ATM Machines?

Many of you would always go to the bank or ATM to withdraw money. You have to face long queues to withdraw cash from the bank. To avoid long queues, they get in line at ATMs and withdraw cash. But, have you ever wondered how an ATM machine works? This thing must have crossed your mind at least once. In this article of ours today, we are going to talk about this, how does ATM work?

In today’s modern age, there is nothing that seems impossible. If we talk about 50 years ago, then it seemed just a fantasy to withdraw money from a machine by just entering a few words and a pin number. ATM machine is a living proof of this that in this modern technological age we have made many things which may have seemed impossible before. Many of us use ATM machines to withdraw money. But have most of you thought about how the ATM machine works? Today we are going to talk about the same in this article that what is the functioning of any ATM machine? Often whenever we withdraw money from an ATM machine, many things are going on simultaneously inside the ATM machine.

Today in this time we will give information to all of you. How does any ATM machine work? Along with scanning you ATM card, updating your account with your bank, a bank ATM machine has a lot of functions.

How does ATM work?

How does ATM work?

Whenever you go to withdraw money from an ATM machine, always remember that whenever you insert your ATM card in the ATM machine, the chip or magnetic strip attached to it, which is a black strip, should be scanned by the scanner attached to the ATM machine. is taken.

After this, through this scan, the necessary data present in your ATM card transmits the information in the form of a signal to your bank. When you put your ATM card on the ATM machine, you must have seen that it is written on the ATM machine that please wait for a while.

This means that your ATM card is being checked, then the ATM machine gives information to your bank’s server whether the ATM card is valid or not! After this you enter the PIN on the ATM machine.

Then the ATM machine transmits this PIN number to your bank’s server and your ATM card is linked to your bank along with the ATM machine. As soon as the request reaches your bank’s server, the bank’s server checks its from the bank’s database and if you have not entered the correct ATM pin, your request is canceled by the bank. Is. By which you are asked to enter again at ATM. If you enter wrong ATM PIN more than 3 times, your ATM card is also blocked for 24 hours.

Withdraw Money From ATM Machine

If you enter the correct PIN code on the ATM machine. If the pin code is found correct by the server of your respective bank. So many options open up inside the ATM machine.

Now you have many options in front of you. If you want, you can withdraw money from ATM. Or else, you can send money from one ATM to another, that is to say, you can send money from one ATM card to another ATM card. If you want, you can also go to see how much money is available in your account.

If you choose the option of Withdrawal or Withdrawal. After that you put the money. Again this request reaches the server connected to your bank, if how much money is available in your account, then your bank’s server will accept this request. If you do not have enough money in your account, then you will get the message of insufficient balance. In this way you can withdraw money from any ATM. Also Read – How To Save Money From Salary | How to start saving money?

Many people also think that ATM machines print money but it is not so at all. Bank employees or employees of other financial institutions put money on the bank’s ATM machine every day.

Talking about the inside of the ATM machine, there are different trays inside any ATM machine to keep the money. Only one type of note is kept in one type of tray. For example, 2000 notes will be kept in only one type of tray. Similarly 500 notes are kept on a separate tray, 200 and 100 notes are kept on a separate tray.

Many times such incidents have also come to light in which someone has gone to ATM to withdraw ₹ 500 and got ₹ 2000 note. Such mistakes happen only when a different note is put on the wrong tray in an ATM machine. It means to say that a ₹ 2000 note has been put on the ₹ 500 tray.

How Many Types Of  ATM Machines Are There?

Based on the working mechanism of the ATM machine, we can divide the ATM machine into two types.

Ordinary ATM Machine – You can only withdraw money from this type of ATM machine but, you will be able to deposit money in this type of ATM machine.
All in One ATM Machine – Both types of tasks can be done inside this type of ATM machine. It means to say that inside this type of ATM machine both types of work i.e. if you want to withdraw money then money will also come out and if you want to deposit notes i.e. cash then money will also be deposited in cash.

On the basis of banking and financial institution, the types of ATMs have also been divided into different types. So you can say that there are many types of ATM machine such as Micro ATM, White Label ATM, Brown Label ATM, Green Label ATM, Orange Label ATM, Yellow Label ATM, Pink Label ATM, on the basis of onside and offside ATM is also divided.

History of ATM – 

The first ATM machine was used commercially in the US on September 2, 1969. Almost after this the ATM machine had brought a revolution in the banking industry. No need to go to the bank to do basic financial transactions, people were now able to withdraw money from ATM machines located in their neighbourhood.

The year 1980s so that these machines became widely popular among the people. It was the first machine capable of operating as an automated teller and controlling multiple functions at the same time. Such as check deposit and money transfer between accounts etc. Today ATM machine has become so much popular among the people as if you run Facebook when you get time.

Simple ATM machines, but proved to be so popular that people started researching for many other functions related to it. Several inventors had also begun working on early versions of the corner disposing machine. Then, in early 1967, a company called Doctel developed an automated baggage handling device based on the ATM machine itself. He is generally credited with coming up with the idea of the modern ATM machine. At the same time, many technical deficiencies were removed in the ATM machine and today we have a state-of-the-art ATM machine in front of us.


So friends, in this article of ours today, we have provided information to all of you about how ATM works?  From this article of ours today, you must have got this information that when you insert the ATM card in the ATM machine, many things are going on simultaneously inside the machine. If you have any questions and suggestions related to this article of ours today, then you can tell us by commenting in the comment box. 

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »