ATM Machine Technology
ATM stands for Automated Teller Machine. A very specialized technology allows an ATM to complete its simple tasks. The machines have revolutionized personal finance worldwide and can be found nearly anywhere you need cash instantly. In a survey by VISA, 92 percent of people said convenient ATM access is a crucial factor for choosing a bank.
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ATM History
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Beginning in 1939, Luther Simjian registered numerous patents for an ATM machine. His machine was first used in New York City in the early 1960s, by the bank now known as Citibank, but there was little demand. The first successful ATM, created by Scottish inventor John Shepherd-Barron, was installed at a Barclays Bank branch in London in 1967. Customers would purchase 10 pound vouchers to use with the machine. The first machine to use a reusable plastic card was invented by Texan Don Wetzel. In the early 1970s his company, Docutel, sold the first modern computerized ATMs.
ATM Hardware
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ATMs have two input devices, the keypad and the card reader. The output devices include the money dispenser, receipt printer, screen and speaker. ATMs once had custom-made circuit boards, but now many have standard PCs. Security is ensured with a crypto processor located in a host computer within a tamper-resistant compartment.
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ATM Software
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Most ATMs now use Windows or Linux operating systems. Using a direct phone line or dial-up modem, the machine connects to a switch, which opens it up to the various networks that allow a cardholder access to his accounts. Direct lines have a shorter response time, but are more expensive. Many ATMs are switching to wireless systems. All connections are encrypted to prevent theft of financial and personal information.
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References
- Money Towers: Happy Birthday ATM!
- Lemelsen-MIT Program: Inventor of the Week Archive: Luther Simjian
- Los Angeles Times: Obituaries: Afterword: ATM inventor John Shepherd-Barron dies at 84
- CNN Money: Fortune: The Money Machines The humble ATM revolutionized the way we deal with money and turned global commerce into a 24/7 affair. You can thank a Texan named Don Wetzel--and the blizzard of 1978.
- The Business POS: ATM hardware and software
- Mandrake ATM: How ATMS Work
- Photo Credit atm image by chrisharvey from Fotolia.com
