What Are Automatic Teller Machines?
Automatic teller machines (ATMs) provide convenient access to cash. Although the rise of Internet banking may displace their use for other transactions, it is difficult to replace them as currency dispensers.
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Definition
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An ATM is a device that allows bank customers to access cash from their accounts and to handle many other banking transactions without stepping into the bank. They may be used around the clock.
History
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The inventor of the ATM is not clear-cut. The first ATM was used in 1939, developed by Luther George Simjian. It failed to be profitable. James Goodfellow holds a patent (dated in 1966) for the device that most closely resembles today's ATM. John Shepherd-Barron is sometimes credited as the inventor with his machine installed at Barclays Bank in London in 1967. The company Docutel and Don Wetzel are credited with creating the first "magstripe" machine in 1968.
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Types
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The first ATMs were attached to the exteriors of the banks/credit unions that owned and operated them. While you could access your money 24 hours a day, 7 days a week, you still had to "go to the bank." Nearly all bank branches still provide ATMs for after-hours banking. The first free-standing ATM was introduced in 1994. Now, any retail operation may own and operate an ATM.
Benefits
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The primary benefit of the ATM is as a cash dispenser. Other benefits include checking your available balance, making deposits and transferring money between accounts.
Fees
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There may be usage fees levied by the owner/operator of the ATM, as well as by your bank. You could also be charged by both entities, doubling your fee. Charges for using an ATM will be shown at the start of your transaction. Bank fees vary by institution and may be waived depending on your account type and/or balance.
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References
- Photo Credit Image by Flickr.com, courtesy of Ludovic Bertron
