An ATM card (also known as a bank card, client card, key card, or cash card) is any payment card issued by a financial institution to its customers which enables a customer to access an automated teller machine (ATM) for transactions such as deposits, cash withdrawals, obtaining account information, and other types of banking transactions. The payment card may be any card which has that feature enabled, and may be a debit, credit, a limited-use ATM or other card. Interbank networks allow the use of ATM cards at ATMs of financial institutions other than those of the issuing institution.
Nowadays ATMs are playing a vital role in banking sector, for easy accessing the account from anywhere in the world. One should possess good knowledge on this working and technologies used in ATMs for Banking Awareness for IBPS SBI RRB bank exams. This Material on Technology Used in ATMs are designed with the information about the technology, operating systems, connection mode and OSI layers used in Automated Teller Machine (ATM). Candidates who are writing IBPS SBI RRB bank exams are recommended to study this material. Good number of questions will be asked on Technology Used in ATMs. All Banking Awareness Materials for Online Bank Exams are designed here exclusively for bank aspirants. Study all Banking Awareness Materials and practice our Online Bank Exams to enhance your knowledge and confidence. Materials on Computer Awareness and Current Affairs are also provided here for IBPS SBI RRB bank exams. Go through the materials and online tests with confidence all the best.
Automated Teller Machine (ATM)
ATM cards can also be used on improvised ATMs, such as merchants’ card terminals that deliver ATM features without any cash drawer (commonly referred to as mini ATMs). These terminals can also be used as Cashless scrip ATMs by cashing the fund transfer receipt at the merchant’s Cashier.
On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN).
Using an ATM, customers can access their bank deposit or credit accounts in order to make a variety of transactions such as cash withdrawals, check balances, or credit mobile phones. If the currency being withdrawn from the ATM is different from that in which the bank account is denominated the money will be converted at an official exchange rate. Thus, ATMs often provide the best possible exchange rates for foreign travellers, and are widely used for this purpose.
Important Points to Remember:
Technology Used: Broadband Integrated Service Digital network (BISDN)
Operating systems used in ATMs Primarily: Windows XP Professional and Windows XP Embedded
Communication Mode: Both Data and Voice
Operates on: layer 2 in OSI Model (Data Link Layer)
Connection Mode: Point-to-Point
Size of ATM Cells: 53 Bytes (48 bytes of data and 5 bytes of header information)
Facilities Available at ATMs:
- Account Information
- Cash Deposit
- Regular bills payment
- Purchase of Re-load Vouchers for Mobiles
- Mini/Short Statement
- Loan account enquiry
There are two types of cards supported by ATM
- ATM Debit Card
- Credit Card
ATM Debit Card:
ATM Debit Card is card given by bank to access your account easily using a machine called Automated Teller Machine (ATM). Debit cards can be used for shopping purposes, without carrying the money. You can use Debit cards while purchasing, but you must have money in your account. Purchased amount will be deducted immediately from your account. Debit cards are safe as no one can access your account without your PIN plus they allow you to conduct your banking online and they give you 24 hour access to your money. Some of the other advantages of using a debit card are:
Advantages:
- No need to carry money with you
- You don’t need to find a bank to withdraw funds
- You can use your debit card almost anywhere
- No monthly interest charges on your spending
- One swift swipe of your card will help you get out the door in a hurry. They are a convenience of modern times that allow a person to access their bank accounts from just about any location!
- Availability (24*7 Services)
Disadvantages:
- Sometimes you may face Server-Down Problem
- Forgetting of Pin Number
- Fees charged for using card in different bank may be expensive
- Limitation of cash withdrawal
A credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder’s promise to pay for them. The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user.
A credit card is different from a charge card: a charge card requires the balance to be paid in full each month. In contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash card, which can be used like currency by the owner of the card. A credit card differs from a charge card also in that a credit card typically involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a later date.
Advantages:
- Convenience
- Use other people’s money
- Meet emergencies
- Use something while you pay for it
- Get something you can’t afford now
- May get better service on something bought on credit
- Take advantage of sales
- Establishes a credit history
Disadvantages:
- Credit almost always costs money
- It can become a habit and encourages overspending
- Overuse of credit leads to a poor credit record
- Comparison shopping may be discouraged
- Reduces future buying power
- Extra fees add to the total cost
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