Automated Teller Machines (ATMs)



Automated teller machines (ATMs) are the 'hole in the wall' cash dispensers which many people use when the bank is not open or when they do not want to queue inside. Instead of queuing at a bank counter, customers visiting the bank branches are encouraged to use a range of machines. ATMs of various kinds enable customers to:

  •  Obtain cash
  • Pay in money and cheques
  • Obtain detailed bank statements and mini bank statements or request a bank statement by post
  • Change their PIN (Personal Identification Numbers)
  • Transfer money between accounts
  • Check account balances on screen
  • Top up mobile phones
  • Obtain quotations for loans but not apply for loans

ATMs are in widespread use in many countries. In Mauritius, they are located outside banks, at airports, the larger supermarkets and shopping malls. In the Maldives, they are found outside banks or in separate kiosks in busy areas in Male and also on the main atolls. In Bangladesh, ATMs are available in most cities and large towns. They are usually in open-all-hours booths that are guarded and that accept both credit and debit cards. In Pakistan, ATMs are available in the major cities and towns. They will accept Maestro debit cards and Visa and MasterCard credit cards but not always all these cards. Some ATMs do not accept foreign cards. Usually you can obtain cash free of charge from another bank's ATM e.g. customers of HSBC can obtain cash at a cash point provide by Standard Bank. Some ATMs are not provided by banks but are installed by independent cash machine operators who charge fees for people to obtain cash in motorway service stations, petrol stations and convenience stores. 


Why do Banks Provide ATMs?

ATMs provide easy access to some bank services and enable bank services to be available to customers after banking hours. ATMs are often available in a part of the bank's building separated by high security from the rest of the bank so that they can be used 24 hours a day. Banks are not available everywhere. ATMs enable banking services to be made available away from bank premises, e.g. in kiosks, foyers, garages and shops. ATMs help to save the labor costs of banks. They speed up banking transactions and reduce bank queues.
Staffs are freed from performing routine transactions so that more profitable sales-oriented work can be done. Fewer staff is needed since the computer does much of the routine work. A 24 hour per day service is provided to satisfy their customers' demands. The system makes it impossible for a customer to withdraw funds from their account unless they have the money in their account.

  
 Benefits to Customers of Using ATMs
  
  • No need to visit banks and waste time in queuing
  • Can pay utility bills easily
  • Can be used at any time 24 hours a day and 7 days a week; ideal for those people who work irregular hours. 
  •  Can use own PIN number which can be changed
  •  Many ATMs are available in many countries
  •  Varieties of services are available
  • Some customers prefer the anonymous nature of the machine since it cannot think you have stolen the cheque book or that you are spending too much,
  •  It is possible to park near the dispenser in the evening, so getting cash is a lot quicker.
  • There are fewer queues since-the transactions performed by the ATM are a lot faster.

Demerits to Customers of Using ATMs

  • Limit to the cash that can be withdrawn daily
  • Danger of theft/fraud/being mugged at ATMs
  • Have to remember the PIN number
  • May breakdown or run out of cash
  • Limited scope of some services, e.g. mini statements

Video on : 

How to Withdraw Money from ATMs ? 

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