You may be surprised that even in 2020, there are some people that doesn’t know atm meaning, especially the young generation. It’s now 53 years since the introduction of the atm in London 1967.
Atm has really been very useful to the public and the banking sector in general, the workload of money withdrawal have been reduced through the use of the atm.
As a newbie, you may be asking what does atm mean, this is what i’m going to explain to you on this very topic, atm meaning and it’s usefulness.
You have been hearing the word atm which is actually a short term, and asking what does atm mean in text, this is simply the full meaning: Automated teller machine.
The automated teller machine is an electronic banking outlet that allows customers to complete their money transactions without the aid of a banker or going into the bank for a withdrawal.
Since it’s inception, workload on banks have reduced drastically especially in terms of money withdrawal. Also money transfer and checking of account balances.
There’s no bank financial institution that doesn’t have the automated teller machine in 2020, and there’s a report that there are more than 5 million ATMs across the world.
Having understood the atm meaning, lets head over to the basic features of the automated teller machine.
Features of the ATM
The automated teller machine has the basic features which i recommend that you should know. They are;
1. The Card Reader: This is the part of the atm that reads the chip on the front of the card or the magnetic stripe on the back of the card.
2. Keypad: The keypad is that part that allows the consumer to input or type in their information like the PIN, the type of transaction he or she intends to do, like withdrawal, account checking etc and the amount of the transaction.
3. Cash dispenser: This is where cash are dispensed through a slot in the machine, which is connected to a safe at the bottom of the machine.
4. Printer: This is another feature of the atm that prints out the amount you withdrew from the atm or transferred to another account through the atm.
If required, consumers can request receipts that are printed here. The receipt records the type of transaction, the amount, and the account balance.
5. Screen: The ATM issues prompts that guide the consumer through the process of executing the transaction. Information is also transmitted on the screen, such as account information and balances.
The above are the major features of the atm that you as a bank customer should know.
ATMs are not necessarily located outside the bank, some banks build their ATMs close to shopping centers or transport companies for easy access to money.
Some also build their ATMs in schools and hospitals, i will say a highly traffic areas that involves money transactions.
In some countries of the world, especially the developed countries, atm withdrawal or services is 24/7 which gives the bank customers the opportunity to access their financial services even after the bank closing hours.
Major atm advantages
Having known the atm meaning, next is the advantage that comes with using the atm. Some major advantages of the automated teller machine includes the following;
1. Fastest means of cash withdrawal
The major advantages of atm is fastest means of cash withdrawal, which reduces crowd in the banking hall and quick money withdrawal to the bank customers.
Aside from the atm withdrawal, the pos have been helping bank customers to withdraw their cash except for the fact that it attracts a fee which is higher than when withdrawing from the atm.
2. Balance Inquiry
Atm helps for easy balance inquiry without the bank customer going inside the bank or inquiring from the customers service representative.
3. Money transfer
Another good advantage of atm is that it helps a customer to transfer money from his or her account to another bank, this in turn reduces workload on the bankers in charge.
4. Pay utilities bills
With atm, you can easily pay utility bills like Electricity bills, dstv or gotv etc. You don’t really need to go their centers, on the atm machine, key in the right codes and you’re good to go.
There’s one thing in this world, anything that has an advantage, also has it’s disadvantage and this includes the automated teller machine.
Disadvantages of the atm
This post isn’t basically just to know atm meaning, what does atm mean in text, but also its cons. The major cons of the automated teller machine in 2020 includes the following;
1. Network issues
Network issues is one atm disadvantages we have, and it can be really annoying. For example, going to the atm to withdraw cash, getting there and inserting your card for it to bring out the card stating “No Network”.
Not only that, you might even want to make an online payment or do money transfer which requires the use of the atm, if there’s an issue with the network, it will not go through.
2. Dispense Error
One major atm disadvantages that is common especially in the developing countries is the atm dispense error.
Atm dispense error is quite related to network issues but bit different, though bit different.
For those that might be confused on what atm dispense error is, it is the process by which a bank customer goes to the atm to withdraw cash, the atm didn’t dispense cash, but the bank customer is debited.
For example, going to the atm machine to withdraw cash, after inserting your debit card and doing the required process, the atm read but won’t dispense cash to you. Within few seconds you will notice that you’ve been debited.
3. Withdrawal Fees
Going into the banking hall to withdraw money, doesn’t attract any fee, but some countries made it in such a way that if you use another bank atm, it attracts a fee.
For example you’re banking with Pinkney Bank plc and went to Mozart bank plc instead of Pinkney bank to withdraw money, it attracts a certain fee.
Some basic importance of the automated teller machine are;
Helps solving cash problems of unforseen circumstances. Atm have been to the rescue most times you run out of cash, especially during the weekends.
You may not really plan to make a withdrawal, but because of unforseen circumstances you are forced to do so and the atm usually comes to the rescue, especially on Saturday and Sunday.
Some bank customers sees it as the best, convenient and faster way of cash withdrawal compared to the pos or going into the bank.
To use the automated teller machine, you have have either the debit or the credit card. They include the likes of mastercard, Visa card, Verve card, RuPay Debit cards, Maestro Debit Card etc.
Bet i’ve explained atm meaning and in text as well. I’m open to your questions and suggestions.