From Your inventory To Your Purse: How Atms Give You Your Money

Student Loans PNC - From Your inventory To Your Purse: How Atms Give You Your Money

Over the last half century, automatic teller machines - or Atms as they're more commonly known - have revolutionised the way we bank. Initially created naturally to dispense cash, today's Atms accomplish a range of functions. In the 21st century, you can use an Atm to deposit cash as well as withdraw it from your account, check your balance and to top up your movable phone. Many Atms also have multi-lingual capabilities and touch screen functionality, manufacture them more relevant and beneficial in today's globalised world.

But how exactly do Atms work? Read on to find out more about this ground-breaking machine and how it gets your money from your inventory to your purse.

From Your inventory To Your Purse: How Atms Give You Your Money

How Atms work

From Your inventory To Your Purse: How Atms Give You Your Money

If you've just opened a bank account, or you're naturally new to Atms, it's prominent to distinguish in the middle of their various components and buttons. The first step is to insert your bank card into the machine. It will then prompt you to enter your four-digit Pin - which will have been given to you by your bank. Provided you have entered your Pin correctly, you'll then be asked which function you'd like to complete: for instance, a cash withdrawal, a balance check or a movable top up. If you're withdrawing cash - the most tasteless use of an Atm - you must specify how much you need. You'll hear the faint whooshing sound of notes being counted before your cash is dispensed. You can also opt to print a receipt, or sometimes a mini balance statement of your last few transactions.

Of course, the money doesn't magically fly from your bank inventory to the Atm. Essentially, each Atm is related to a host processor. When you insert your card and Pin to request cash, the host routes the request to your bank or building society. Provided you have sufficient money, this triggers an electronic funds transfer from your bank inventory to the host's account. When the funds have been transferred, an approval code is sent to the Atm asking it to issue the cash. The merchant running the machine will then be reimbursed by the host inventory soon after the transaction. It sounds like a complicated process, but to the buyer using the Atm it takes place in a matter of seconds.

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