Using an ATM, customers can access their bank deposit or credit accounts in order to make a variety of financial transactions, most notably cash withdrawals and balance checking, as well as transferring credit to and from mobile phones.ATMs can also be used to withdraw cash in a foreign country.The roll-out of this machine, called Bankograph, was delayed by a couple of years, due in part to Simjian's Reflectone Electronics Inc. An experimental Bankograph was installed in New York City in 1961 by the City Bank of New York, but removed after six months due to the lack of customer acceptance.
Transactions were initiated by inserting paper cheques issued by a teller or cashier, marked with carbon-14 for machine readability and security, which in a later model were matched with a six-digit personal identification number (PIN).
Shepherd-Barron stated "It struck me there must be a way I could get my own money, anywhere in the world or the UK.
In the US patent record, Luther George Simjian has been credited with developing a "prior art device".
Specifically his 132nd patent (US3079603), which was first filed on 30 June 1960 (and granted 26 February 1963).
It had a profound influence on the industry as a whole. Customers were given personal code numbers to activate the machines, similar to the modern PIN. These were fed into the machine, and the corresponding amount debited from the customer's account. Asea Metior's Bankomat was the first ATM installed in Spain on January 9, 1969, in downtown Madrid by Banesto. Busicom manufactured these microprocessor-based automated teller machines for several buyers, with NCR Corporation as the main customer.
Not only did future entrants into the cash dispenser market such as NCR Corporation and IBM licence Goodfellow's PIN system, but a number of later patents reference this patent as "Prior Art Device". This device dispensed 1,000 peseta bills (1 to 5 max). for his PIN verification system, which included an encoded card reader and described a system that utilized encryption techniques to assure telephone link security while entering personal ID information that was transmitted to a remote location for verification. It was a card reader and customer identification system, providing a terminal with plastic card and PIN capabilities.
If the currency being withdrawn from the ATM is different from that in which the bank account is denominated, the money will be converted at the financial institution's exchange rate.
Customers are typically identified by inserting a plastic ATM card (or some other acceptable payment card) into the ATM, with authentication being by the customer entering a personal identification number (PIN), which must match the PIN stored in the chip on the card (if the card is so equipped), or in the issuing financial institution's database.
On September 2, 1969, Chemical Bank installed the first ATM in the U. Chemical's ATM, initially known as a Docuteller was designed by Donald Wetzel and his company Docutel. Wetzel was recognised by the United States Patent Office as having invented the ATM in the form of U. Patent # 3,761,682; the application had been filed in October 1971 and the patent was granted in 1973. It allowed the customer to type in a secret code, which is transformed by the device, using a microprocessor, into another code for the teller.
Chemical executives were initially hesitant about the electronic banking transition given the high cost of the early machines. market; but as a result of the early 1970s worldwide recession and its reliance on a single product line, Docutel lost its independence and was forced to merge with the U. During a transaction, the customer's account number was read by the card reader.
Many ATMs have a sign above them indicating the name of the bank or organisation that owns the ATM, and possibly including the networks to which it can connect.