An electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, funds transfers, balance or account information inquiries, at any time and without the need for direct interaction with bank staff. ATMs are widely available and provide convenient access to banking services outside regular banking hours.
Other Names for ATM
ATMs are known by a variety of other names, including automatic teller machines (ATMs) in the United States (sometimes redundantly as "ATM machine"). In Canada, the term automated banking machine (ABM) is also used, although ATM is also very commonly used in Canada, with many Canadian organizations using ATM rather than ABM. In British English, the terms cashpoint, cash machine and hole in the wall are also used.
- Non-financial institution ATMs: ATMs that are not operated by a financial institution are known as "white-label" ATMs.
How ATMs Work
A specialized computer that allows bank customers to perform financial transactions, typically cash withdrawals, without needing a human teller. Customers can also use ATMs to check their account balances, deposit money or checks, and transfer funds between their accounts.
- Authentication: A customer typically needs a physical debit or credit card and a Personal Identification Number (PIN) to use an ATM.
- Transaction types: Cash withdrawals, deposits, funds transfers, balance or account information inquiries.
- Accessibility: ATMs are widely available and provide convenient access to banking services outside regular banking hours.