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Automatic Teller Machine


Automatic teller machine (ATM) is an electronic banking outlet, which allows customers who has bank account 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

ATM works by using a plastic card (ATM card) which contains a magnetic stripe. It encodes the customer's account number. By entering a pass code called a PIN (personal Identification Number), a customer can make with drawls. If the customers enter it incorrectly several times in row most ATM's will retain the card as security precaution.

There are two primary types of ATM. Basic units allow customers to withdraw cash and receive reports of their account balances only. The more complex machines accept deposits, facilitate line of credit payments and report account information. To access the advanced features of the complex units, a user must be an account holder at the bank that operates the machine.

For travelers, ATM make it simple to access their checking or savings accounts from almost anywhere in the world. When travelers use foreign ATM, they receive a better exchange rate than they would at most currency exchange offices. Additionally, using an ATM is easier than cashing traveler's checks, and arguably, it makes travel safer, as the traveler doesn't have to carry a lot of cash. However, the account holder's bank may charge a transaction fee or a percentage of the amount exchanged. Most ATMs do not list the exchange rate on the receipt, making it challenging to track spending.

ATM becomes the most important machine in people’s daily activity, because ATM can make people who has bank accounts withdraw, deposit, transfer, credit payments, and many electronic transaction without a teller. People can use ATM anywhere and anytime, so ATM can make people easier doing many electronic transactions.

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