Learning Intentions

• Explain what an ATM is and the facilities offered

• Identify the stages of withdrawing cash from an ATM

• List the advantages and disadvantages of ATMs

What is an ATM?

An ATM (Automatic Teller Machines) is a cash machine or ‘hole in the wall’ which allows bank customers to withdraw cash or make an enquiry about their bank account.

Bank customers can gain access to their accounts 24 hours a day, 7 days a week.

What facilities does an ATM offer?

• Customer can withdraw cash from their accounts

• Order a bank statement

• Order a new cheque book

• View your current bank balance

• Print a mini-statement of latest transactions

• Change the PIN (Personal Identification Number)

• It informs bank customers of any new banking services

The stages of withdrawing cash

1. Bank card is inserted into ATM machine

2. PIN is entered by customer

3. If the PIN is correct the customer is offered a menu of choices from which they select Cash

4. Customer selects cash amount (limited amount)

5. Cash amount is confirmed by the customer

The stages of withdrawing cash cont’d

6. The customers bank card is returned

7. Money is output

8. A receipt is printed if requested

Advantages of an ATM

1. Less bank employees will be required because fewer customers will be withdrawing cash inside the bank

2. Customers have access 24 hours a day, 7 days a week

3. No need for customers to carry around large amounts of cash

4. A PIN is more secure than a signature on a cheque

Disadvantages of an ATM

1. Not always suitable for making an enquiry, it may be more appropriate to talk to a staff member

2. ATMs can become ‘out of order’ quite frequently which causes frustration for customers

3. Not all bank cards are accepted at each ATM

4. A bank ATM can charge users if they are not customers of the bank

Learning Intentions

• Explain what an ATM is and the facilities offered

• Identify the stages of withdrawing cash from an ATM

• List the advantages and disadvantages of ATMs