CONTENTS

Introduction ATM Machine History & Invention How Do ATMs Work? Parts of the Machine
HARDWARE SOFTWARE

ATM Security Benefits

ACKNOWLEDGEMENT I am really thankful to all those people, who have helped me in my project some way or the other. Er. Sukhdeep Kaur is responsible to bring out the text in its present form.. Lastly, the blessing of my parents has helped me to grasp the challenging subject mater.

SANDEEP SINGH Roll No. 883256 B.TECH ECE 7th SEMESTER

Introduction Automated teller machines can offer significant benefits to both banks and their depositors. The machines can enable depositors to withdraw cash at more convenient times and places than during banking hours at branches. At the same time, by automating services that were previously completed manually, ATMs can reduce the costs of servicing some depositor demands. These potential benefits are multiplied when banks share their ATMs, allowing depositors of other banks to access their accounts through a banks ATM. The decision by banks to share their ATMs is partially determined by the terms under which the sharing would occur. In particular, there are several prices that can be charged to or collected by the three main parties involved in an ATM transaction, the cardholder, the cardholders bank, and the ATM owner. How, and by whom, these prices are set affects a number of economic decisions, including the number of machines that banks and non-banks choose to deploy, deposit market interest rates, distances traveled by depositors and non-depositors that wish to withdraw cash, profits of banks, and welfare of bank customers. ATM machine (Automatic Teller Machine machine) A banking terminal that accepts deposits and dispenses cash. ATMs are activated by inserting a cash or credit card that contains the user's account number and PIN on a magnetic stripe. The ATM calls up the bank's computers to verify the balance, dispenses the cash and then transmits a completed transaction notice. The word "machine" in the term "ATM machine" is certainly redundant, but widely used. Automated teller machine (ATM), device used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. The strip contains an identification code that is transmitted to the bank's central computer by modem. To prevent unauthorized transactions, a personal identification number (PIN) must also be entered by the user using a keypad. The computer then permits the ATM to complete the transaction; most machines can dispense cash, accept deposits, transfer funds, and provide information on account balances. Banks have formed cooperative, nationwide networks so that a customer of one bank can use an ATM of another for cash access; by 1997 there were more than 160,000 ATMs across the United States. Some ATMs will also accept credit cards for cash advances. The first ATM was installed in 1969 by Chemical Bank at its branch in Rockville Centre, N.Y. A customer using a coded card was dispensed a package containing a set sum of money.

History And Invention The world's first ATM was developed by De La Rue and installed in Enfield Town in North London on June 27, 1967 by Barclays Bank. This instance of the invention is credited to John Shepherd-Barron, although Luther George Simjian registered patents in New York, USA in the 1930s and Donald Wetzel and two other engineers from Docutel registered a patent on June 4, 1973. Shepherd-Barron was awarded an OBE in the 2005 New Year's Honours.Atm invention has changed not only the face of banking but also the way we conduct our daily lives. It is a technology that has altered our lifestyles more significantly than most other inventions. The name of this inventor is John Shepherd-Barron. The invention of the ATM brought different ideas, different experiences and different technologies together. For example, ShepherdBarron's armored trucking division was then responsible for moving most of the cash in the UK. He had earlier brought over the idea of armored trucking from the U.S. But he had started his career with De La Rue on the currency printing side of the business.Soon afterwards, a deal was signed with the bank to develop six ATMs (called then a DACS -- De La Rue Automatic Cash System) for trial, followed by 50 more machines. It took one year to develop the Asynchronous Transfer Mode Switching.

There are mainly two types of ATMs which differ according to the way they operate. Leased-line ATM A leased-line ATM machine has a 4-wire, point to point dedicated telephone line which helps in connecting it with the host processor. These types of machines are preferred in places where the user volume is high Dial-up ATM machines The dial-up ATM machines only has a normal phone line with a modem and a toll free number. As these are normal connections their initial installation cost is very less

TYPES OF ATM CARDS: ATM Credit Cards : This type of card has all the features of the ATM debit card plus the features of a credit card. This card is not only attached to a checking account, but also to a line of credit. Basic ATM Card : ATM card to withdraw and deposit money check your account balance and transfer funds. Some ATM cards also have a few more uses like paying loans and getting cash advances ATM cards cannot be used to make purchases Debit ATM Card : An ATM debit card has all the features of a regular ATM card with the added features of a debit card. This card can be used to make purchases at any store or online.

How Do ATMs Work? An ATM is simply a data terminal with two input and four output devices. Like any other data terminal, the ATM has to connect to, and communicate through, a host processor. The host processor is analogous to an Internet service provider (ISP) in that it is the gateway through which all the various ATM networks become available to the cardholder (the person wanting the cash).

FINANCIAL NETWORK

Most host processors can support either leased-line or dial-up machines. Leased-line machines connect directly to the host processor through a fourwire, point-to-point, dedicated telephone line. Dial-up ATMs connect to the host processor through a normal phone line using a modem and a toll-free number, or through an Internet service provider using a local access number dialed by modem. The host processor may be owned by a bank or financial institution, or it may be owned by an independent service provider. Bank-owned processors normally support only bank-owned machines, whereas the independent processors support merchant-owned machines.

Parts of the Machine An ATM has two input devices:

Card reader - The card reader captures the account information stored

on the magnetic stripe on the back of an ATM/debit or credit card. The host processor uses this information to route the transaction to the cardholder's bank.
Keypad - The keypad lets the cardholder tell the bank what kind of

transaction is required (cash withdrawal, balance inquiry, etc.) and for what amount. Also, the bank requires the cardholder's personal identification number (PIN) for verification. Federal law requires that the PIN block be sent to the host processor in encrypted form.

An ATM has four output devices:

 Speaker - The speaker provides the cardholder with auditory feedback

when a key is pressed.

Display screen - The display screen prompts the cardholder through

each step of the transaction process. Leased-line machines commonly use a monochrome or color CRT (cathode ray tube) display. Dial-up machines commonly use a monochrome or color LCD. Receipt printer - The receipt printer provides the cardholder with a paper receipt of the transaction.

Cash dispenser - The heart of an ATM is the safe and cash-dispensing mechanism. The entire bottom portion of most small ATMs is a safe that contains the cash. Sensing Bills The cash-dispensing mechanism has an electric eye that counts each bill as it exits the dispenser. The bill count and all of the information pertaining to a particular transaction is recorded in a journal. The journal information is printed out periodically and a hard copy is maintained by the machine owner for two years. Whenever a cardholder has a dispute about a transaction, he or she can ask for a journal printout showing the transaction, and then contact the host processor. If no one is available to provide the journal printout, the cardholder needs to notify the bank or institution that issued the card and fill out a form that will be faxed to the host processor. It is the host processor's responsibility to resolve the dispute. Besides the electric eye that counts each bill, the cash-dispensing mechanism also has a sensor that evaluates the thickness of each bill. If two bills are stuck together, then instead of being dispensed to the cardholder they are diverted to a reject bin. The same thing happens with a bill that is excessively worn, torn, or folded.

ATM Security ATMs keep your personal identification number (PIN) and other information safe by using encryption software such as Triple DES (Data Encryption Standard). But there are lots of things that you can do to protect your information and your money at an ATM. Many banks recommend that you select your own PIN. Visa offers the following PIN tips: Don't write down your PIN. If you must write it down, do not store it in your wallet or purse. Make your PIN a series of letters or numbers that you can easily remember, but that cannot easily be associated with you personally.
Avoid using birth dates, initials, house numbers or your phone

number.

Some Facts about ATM Machines:

ATM customers spend an average of 20 to 25% more than nonATM customers. 60% of Americans ages 25-34 and 51% ages 25-49 use ATM machines 8 times a month, withdrawing an average of $55.00 per transaction. In 1994, there were 8.3 billion ATM transactions in the United States. Bank ATMs average 6,400 transactions per month. The most popular day for ATM usage is Friday. Among people that use both credit and debit cards, debit cards are used most often. 5.9 times per month versus 5.1 times per month. Independent studies show that cash retention among large retailers is 30-33%. Retention among smaller retailers is 35-40%. Night clubs are seeing 70-80% of the dispensed cash staying at the club. Retail location ATM machines that dispense $20.00 bills increase store sales by over 8%

Benefits Consumers today see ATM'S as a necessity not just convenience.Cash dispensing ATM'S have become the fastest growing and must requested service.Intially banks operated expensive lease line ATM'S with the Introduction of dial up ATM'S owners became aware of the greater benefits of having one site.

HARDWARE

A block diagram of an ATM An ATM is typically made up of the following devices:

CPU (to control the user interface and transaction devices) Magnetic and/or Chip card reader (to identify the customer) PIN Pad (similar in layout to a Touch tone or Calculator keypad), often manufactured as part of a secure enclosure. Secure cryptoprocessor, generally within a secure enclosure. Display (used by the customer for performing the transaction) Function key buttons (usually close to the display) or a Touchscreen (used to select the various aspects of the transaction) Record Printer (to provide the customer with a record of their transaction) Vault (to store the parts of the machinery requiring restricted access) Housing (for aesthetics and to attach signage to)

Recently, due to heavier computing demands and the falling price of computer-like architectures, ATMs have moved away from custom hardware architectures using microcontrollers and/or application-specific integrated circuits to adopting the hardware architecture of a personal computer, such as, USB connections for peripherals, ethernet and IP communications, and use personal computer operating systems. Although it is undoubtedly cheaper to use commercial off-the-shelf hardware, it does make ATMs potentially vulnerable to the same sort of problems exhibited by conventional computers. Business owners often lease ATM terminals from ATM service providers. The vault of an ATM is within the footprint of the device itself and is where items of value are kept. Scrip cash dispensers do not incorporate a vault. Mechanisms found inside the vault may include:

Dispensing mechanism (to provide cash or other items of value) Deposit mechanism including a Cheque Processing Module and Bulk Note Acceptor (to allow the customer to make deposits) Security sensors (Magnetic, Thermal, Seismic, gas) Locks: (to ensure controlled access to the contents of the vault) Journaling systems; many are electronic (a sealed flash memory device based on proprietary standards) or a solid-state device (an actual printer) which accrues all records of activity including access timestamps, number of bills dispensed, etc. - This is considered sensitive data and is secured in similar fashion to the cash as it is a similar liability.

ATM vaults are supplied by manufacturers in several grades. Factors influencing vault grade selection include cost, weight, regulatory requirements, ATM type, operator risk avoidance practices, and internal volume requirements.Industry standard vault configurations include Underwriters Laboratories UL-291 "Business Hours" and Level 1 Safes, RAL TL-30 derivatives, and CEN EN 1143-1:2005 - CEN III/VdS and CEN IV/LGAI/VdS. ATM manufacturers recommend that vaults be attached to the floor to prevent theft.

SOFTWARE With the migration to commodity PC hardware, standard commercial "off-the-shelf" operating systems and programming environments can be used inside of ATMs. Typical platforms previously used in ATM development include RMX or OS/2. Today the vast majority of ATMs worldwide use a Microsoft OS, primarily Windows XP Professional or Windows XP Embedded. A small number of deployments may still be running older versions such as Windows NT, Windows CE or Windows 2000. Notably, Vista was not widely adopted in ATMs. A Wincor Nixdorf ATM running Windows 2000Linux is also finding some reception in the ATM marketplace. An example of this is Banrisul, the largest bank in the south of Brazil, which has replaced the MS-DOS operating systems in its ATMs with Linux. Banco do Brasil is also migrating ATMs to Linux. Common application layer transaction protocols, such as Diebold 91x (911 or 912) and NCR NDC or NDC+ provide emulation of older generations of hardware on newer platforms with incremental extensions made over time to address new capabilities, although companies like NCR continuously improve these protocols issuing newer versions (e.g. NCR's AANDC v3.x.y, where x.y are subversions). Most major ATM manufacturers provide software packages that implement these protocols. Newer protocols such as IFX have yet to find wide acceptance by transaction processors. With the move to a more standardized software base, financial institutions have been increasingly interested in the ability to pick and choose the application programs that drive their equipment. WOSA/XFS, now known as CEN XFS (or simply XFS), provides a common API for accessing and manipulating the various devices of an ATM. J/XFS is a Java implementation of the CEN XFS API. While the perceived benefit of XFS is similar to the Java's "Write once, run anywhere" mantra, often different ATM hardware vendors have different interpretations of the XFS standard. The result of these differences in interpretation means that ATM applications typically use a middleware to even out the differences between various platforms. With the onset of Windows operating systems and XFS on ATM's, the software applications have the ability to become more intelligent. This has

created a new breed of ATM applications commonly referred to as programmable applications. These types of applications allows for an entirely new host of applications in which the ATM terminal can do more than only communicate with the ATM switch. It is now empowered to connected to other content servers and video banking systems. Notable ATM software that operates on XFS platforms include Triton PRISM, Diebold Agilis EmPower, NCR APTRA Edge, CR2 BankWorld, KAL Kalignite, Phoenix Interactive VISTAatm, and Wincor Nixdorf ProTopas. With the move of ATMs to industry-standard computing environments, concern has risen about the integrity of the ATM's software stack. own bank account, such as:

Deposit currency recognition, acceptance, and recycling Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, taxes, etc.) Printing bank statements Updating passbooks Loading monetary value into stored value cards Purchasing o Postage stamps. o Lottery tickets o Train tickets o Concert tickets o Movie tickets o Shopping mall gift certificates. Games and promotional features Donating to charities Cheque Processing Module Adding pre-paid cell phone / mobile phone credit. Paying (in full or partially) the credit balance on a card linked to a specific current account.

Increasingly banks are seeking to use the ATM as a sales device to deliver pre approved loans and targeted advertising using products such as ITM (the Intelligent Teller Machine) from CR2 or Aptra Relate from NCR. ATMs can also act as an advertising channel for companies to advertise their own products or third-party products and services

Conclusion From my point of view ATM is one of the gift from the inventor to

humanity.

ACKNOWL

I express my sincere thanks t Seminar.

Department for providing me

I extend my sincere gratitude

for their cooperation and guid

I also extend my sincere than and encouragement.

Electronics Technology Depa