ATMs
Automatic Teller Machines (ATMs) are places where customers can
withdraw cash or can carry out certain other banking activities like order
a statement, get a mini statement, change ATM Pin, etc) using their
credit or debit cards. An automated teller machine (ATM) is an
electronic banking outlet, which allows customers to complete basic
transactions without the aid of a branch representative or teller. Anyone
with a credit card or debit card can access most ATMs. The first ATM
appeared in London in 1967, and in less than 50 years, ATMs spread
around the globe, securing a presence in every major country and even
tiny little island nations such as Kiribati and the Federated States of
Micronesia.
Processes in a ATM
Once customer insert their card into the ATM slot
The bank account details are first read from the chip on the card
The ATM then checks the validity of the card (i.e has it been stolen,
blocked, is it within expiration date)
The first thing a customer is asked on an international account is to choose
their language option
They are then asked to key in a 4-digit PIN
The keyed-in pin is now compared to the PIN stored in the chip
If matched.. customer taken to the next step
If not.. customer is asked to re-enter PIN
If 3 failed attempts.. transaction is terminated and card is retained
The customer will be shown a number of options (mentioned above)
If customer selects the cash option, a list of available amounts will be given
ATM contacts the customer’s bank to check sufficient funds
Check to see if daily limit is reached
Machine counts the cash and returns the card
Ask if receipt is needed
Money is dispensed and customer’s account is updated
If customer chooses balance, the will be asked if they want balance on
screen or print out
Internet Banking
It is now very common for bank customers to access their
bank account from home using on-line
banking services.
It is a system of banking in which customers can view
their account details, pay bills, and transfer money by
means of the internet.
Advantages
You can withdraw cash at any time, day or night. The
banks don’t need to be open.
ATMs offer the convenience of multiple locations.
You can withdraw cash at any bank that is part of the
system to which your ATM card is linked.
Your ATM card is protected by a PIN, keeping your
money safe.
You don’t need to fill out withdrawal and deposit slips
as is required at the bank.
ATMs are faster than going to the bank—no long
lines.
You can withdraw cash at ATMs in foreign countries
There is no longer a need to travel to the town centre
thus reducing costs i.e., money for fuel, bus fares,
etc., and wasting of time; it also helps to reduce
congestion at town centre, banks and stores and also
pollution.
Disabled and elderly people can now access any
store or bank without leaving the comforts of their
home, which is of great benefit to them; it help them
to be part of the society since they can now do all the
things which are taken for granted by able-bodied
people.
As is online, banking and shopping can be done at
any time on any day of the week (i.e. 24/7) – this is
particularly helpful to the working class, as the
shops/banks would normally be closed when they
finish their work.
Users now have access to a worldwide market and
can thus look for products that are cheaper; this is
obviously less expensive and less time consuming
than having to shop around by conventional
methods; they also have access to a much wider
choice of goods.
The banks and shops save money by not having as
many staff working for them (which means reduced
wage bill) or hiring of high street premises (resulting
in reduction in rental costs) – these savings are often
passed on to customer in the form of lower interest
rates, cheaper goods or higher rates on interest for
savers.
Many people find it less embarrassing to ask for a
bank loan using the internet rather than enduring
face-to-face discussion with bank staff.
Quite often there are long queues at the banks or
checkout counters at the shops, so internet banking
saves time.
People can spend more time doing other things e.g.
going shopping to the supermarket probably took up
a lot of their time; by doing this online (e.g. setting up
repeat items), people are now free to do more leisure
activities.
You don’t have to carry cash around with you.
If your card is stolen, the thief cannot get your money
without your PIN.
You can use it to pay at some retail shops.
Keeps your money safe.
Security
Concerns
Security issues are a major concern (e.g., hacking,
stealing of credit card details, etc) as are viruses and
other malware (e.g. phishing, pharming, etc).
Accidentally using a fraudulent bank or shopping
websites is always a risk and this is linked to security
issues.
There is a need to be always one step ahead of
thieves so investment must be made in coming up
with new ways to keep customer accounts secure.
Fraud is more likely with an online service than the
fraudster physically visiting a branch.
Your account could get hacked or passwords stolen
from keylogging software
Risk of robbery when you leave the ATM.
EFT crime is often difficult to detect because
funds/data can be removed or manipulated by
instructions hidden in complex computer software;
the dynamics of the criminal action may be
understood only by a few experts within the
institution.
Reference
https://www.igcseict.info/theory/7_2/bank/index.html
http://haslab.co.uk/IG%20ICT/unit6_IT_apps_10.html
https://www.princeton.edu/~ota/disk3/1982/8223/822307.
PDF
https://igcsepro.org/igcse/ict/banking-applications/
http://www.teach-
ict.com/gcse_new/organisations/banking/miniweb/pg13.h
tm
https://www.microfinanceopportunities.org/fci-
portal/fe/content.php?cid=20&theme_id=1
http://slideplayer.com/slide/9757931/
https://books.google.ae/books?id=RVbJDAAAQBAJ&pg=
PT88&lpg=PT88&dq=igcse+ict+study+and+revision+guid
e+atm&source=bl&ots=zMjB-FLK28&sig=-
wUlfmbj5I1nueu8kKDp6ZX7ygI&hl=en&sa=X&ved=0ahU
KEwiY6eac3MDZAhVJsxQKHVLYCTgQ6AEIKDAA#v=o
nepage&q=igcse%20ict%20study%20and%20revision%2
0guide%20atm&f=false
Effect
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