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A TECHNICAL REPORT ON

AUTOMATIC TELLER MACHINE

PRESENTED BY K.Ramesh Reddy (08J91A0436) IN ELECTRONICS AND COMMNICATION ENGINEERING UNDER THE GAUIDANCE OF Mr.G.VENU

2011-2012

VIDHYA BHARATHI INISTITUTE OF TECHNOLOGY (Approved by AICTE, Affiliated to JNTU)

PEMBARTHI, JANGAON, WARANGAL 506201

ACKNOWLEDGEMENT

I am grateful to Mr.Kranthi Kumar, faculty in Electronics for guiding me and providing important materials for the preparation of technical seminar.

RAMESH KATHULA (ECE 08J91A0436)

1. INTRODUCTION

AN AUTOMATIC TELLER MACHINE (ATM)

ATM is a machine permitting a bank's customers to make cash withdrawals and check their account balances at any time and without the need for a human teller. Many ATMs also allow people to deposit cash or cheques, transfer money between their bank accounts or even buy postage stamps.

1.1 Automatic Teller Machine Kiosk

1.2 NAMES
ATMs are known by a wide variety of names, some of which being more common in certain countries than others. Some examples are: 1.0 Automated Teller Machine 1.1 Automated Banking Machine 1.2 ATM Machine sic 1.3 Hole-in-the-wall 1.4 Cash Dispenser 1.5 Cash Machine 1.6 Robotic Teller 1.7 Cash point (in the United Kingdom particularly) 1.8 Bancomat or Bankomat (particularly in continental Europe) 1.9 Geld automat Germany (Geld = money) 2.0 Bank machine (in Canada) 2.1 MAC machine, or MAC, (for Money Access Center) (particularly on the East coast in the United States, esp. New Jersey and Pennsylvania)

1.3 HISTORY
ATM, Don Wetzel invented the first successful and modern ATM in the As is often the case with inventions, many inventors contribute to the history of an invention. In the case of the USA, however he was not first inventor to create an ATM. In 1939, Luther George Simjian started patenting an earlier and not-so-successful version of an ATM.

1.4 NETWORKING
Most ATMs are connected to interbank networks, enabling people to withdraw money from machines not belonging to the bank where they have their account. (Deposits can only be made at machines belonging to the bank that has the account.) This is a convenience, especially for people who are travelling: it is possible to make withdrawals in places where one's bank has no branches, and even to withdraw local currency in a foreign country, often at a better exchange rate than would be available by changing cash.

1.5 ATM CHARGES

Many banks in the USA charge fees for the use of their ATMs by non-depositors, for withdrawals over the network by their own customers, or both; however, in the UK strong public reaction soon persuaded banks not to do this. There is also now a flourishing business in the United States of placing ATMs in grocery stores, malls, and other locations other than banks: some of these machines have signs advertising "low" fees.

1.6 HARDWARE AND SOFTWARE

ATMs contain secure crypto processors, generally within an IBM PC compatible host computer in a secure enclosure. The security of the machine relies mostly on the integrity of the secure cryptoprocessor: the host software often runs on a commodity operating system.

Fig: 1.6.1.In-store ATM Machine

In store ATMs typically connect directly to their ATM Transaction Processor via a modem over a dedicated telephone line, although the move towards Internet connections is under way. Along with the move to the internet, ATMs are moving away from custom circut boards (most of which are based on Intel 8086 architecture) and into full fledged PCs with commercial operating systems like Windows 2000 and Linux. A good example of that is Banrisul, the largest bank in the South of

7 Brazil, which has replaced the MS-DOS operating systems in its automatic teller machines with Linux. Also are used RMX 86, OS/2 and Windows 98 bundled with Java. The newest use Windows XP or Windows XP embedded

1.7 RELIABILITY
ATMs are generally reliable, but if they do go wrong customers will be left without cash until the following morning or whenever they can get to the bank during opening hours. Of course not all errors are to the detriment of customers; there have been cases of machines giving out money without debiting the account or giving out a higher denomination of note by mistake. Sometims annoying software errors can occur which can appear as a dialog box on the screen which is imposible to close.

1.8 SECURITY
Early ATM security focused on making the ATMs invulnerable to physical attack; they were effectively safes with dispenser mechanisms. A number of attacks on ATMs resulted, with thieves attempting to steal entire ATMs by ram-raiding. Modern ATM physical security concentrates on denying the use of the money inside the machine to a thief, by means of techniques such as dye markers and smoke canisters. This change in emphasis has meant that ATMs are now frequently found free-standing in places like shops, rather than mounted into walls. ATM transactions are usually encrypted with DES but most transaction processors will require the use of the more secure Triple DES by 2005. There are also many "phantom withdrawals" from ATMs, which banks often claim are the result of fraud by customers. Phantom withdrawals are considered to be a problem generated by dishonest insiders by most other observers. Ross Anderson, a leading cryptography researcher,

8 has been involved in investigating many cases of phantom withdrawals, and has been responsible for exposing several errors in bank security. There have also been a number of incidents of fraud where criminals have used fake machines or have installed fake keypads or card readers to existing machines. They have used these to record customers' PIN numbers and bank accounts and have then used this information to create fake accounts and steal money from consumers.

A bank is always liable when a customer's money is stolen from an ATM, but there have been complaints that banks have made it difficult to recover money lost in this way.

1.9 SOME ATM MANUFACTURERS

Diebold IBM NCR Tidel Triton Wincor Nixdorf

2. PARTS OF THE MACHINE

2.1 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.

2.2 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.

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HAS 2.3 AN ATM FOUR OUTPUT DEVICES

2.3 SPEAKER
The speaker provides the cardholder with auditory feedback when a key is pressed.

2.4 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. Dialup machines commonly use a monochrome or color LCD.

2.5 RECEIPT PRINTER

The receipt printer provides the cardholder with a paper receipt of the transaction.

2.6 CASH DISPENSER

11 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. 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.

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The number of reject bills is also recorded so that the machine owner can be aware of the quality of bills that are being loaded into the machine. A high reject rate would indicate a problem with the bills or with the dispenser mechanism.

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3. HOW DO ATMS WORK?

3.1 INTRODUCTION
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 cash).

Most host processors can support either leased-line or dial-up machines. Leased-line machines connect directly to the host processor through a four-wire, point-to-point and 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. Leased-line ATMs are preferred for very high-volume locations because of their thru-put capability and dial-up ATMs are preferred for retail merchant locations where cost is a greater factor than thru-put. The initial cost for a dial-up machine is less than half that for a leasedline machine. The monthly operating costs for dial-up are only a fraction of the costs for leasedline.

4. ATM SECURITY
4.1 INTRODUCTION

14 Many banks recommend that you select your own personal identification number (PIN). Visa recommends the following PIN tips: 1. Don't write down your PIN. If you must write it down, do not store it in your wallet or purse. 2. Make your PIN a series of letters or numbers that you can easily remember, but that cannot easily be associated with you personally. 3. Avoid using birth dates, initials, house numbers or your phone number.

4.1 Visa also recommends the following tips for safe ATM usage
Store your ATM card in your purse or wallet, in an area where it won't get scratched or bent. Get your card out BEFORE you approach the ATM. You'll be more vulnerable to attack if you're standing in front of the ATM, fumbling through your wallet for your card. Stand directly in front of the ATM keypad when typing in your PIN. This prevents anyone waiting to use the machine from seeing your personal information. After your transaction, take your receipt, card and money away. Do not stand in front of the machine and count your money. If you are using a drive-up ATM, get your vehicle as close to the machine as possible to prevent anyone from coming up to your window. Also make sure that your doors are locked before you drive up to the machine. Do not leave your car running while using a walk-up ATM. Take your keys with you and lock the doors before your transaction. If someone or something makes you uncomfortable, cancel your transaction and leave the machine immediately. Follow up with your bank to make sure the transaction was cancelled and alert the bank to any suspicious people.

15 Many retail merchants close their store at night. It is strongly recommended that they pull the money out of the machine when they close, just like they do with their cash registers, and leave the door to the security compartment wide open like they do with an empty cash-register drawer. This makes it obvious to any would-be thief that this is not payday.

It's important to use a well-lit, public ATM machine at night. For safety reasons, ATM users should seek out a machine that is located in a welllighted public place. Federal law requires that only the last four digits of the cardholder's account number be printed on the transaction receipt so that when a receipt is left at the machine location, the account number is secure. However, the entry of your four-digit personal identification number (PIN) on the keypad should still be obscured from observation, which can be done by positioning your hand and body in such a way that the PIN entry cannot be recorded by store cameras or store employees. The cardholder's PIN is not recorded in the journal, but the account number is. If you protect your PIN, you protect your account.

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Your ATM PIN should be a number that you could easily remember, but that would not be readily available to thieves.

4.2 New Innovations

Several companies are advertising ATMs for the blind. These machines would be located at kiosks rather than bank drive-thrus. For several years, the keypads at ATMs were equipped with braille for the blind or visually impaired. New innovations in this technology will include machines that verbally prompt the customers for their card, their PIN and the type of transaction they would like to make. For more information on ATMs and related topics, check out the links on the next page. 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). Most host processors can support either leased-line or dial-up machines. Leased-line machines connect directly to the host processor through a four-wire, point-to-point, dedicated telephone line. Dial-up ATMs connect to the host processor through a normal phone line using a

17 modem and a toll-free number, or through an Internet service provider using a local access number dialed by modem.

Leased-line ATMs are preferred for very high-volume locations because of their thru-put capability, and dial-up ATMs are preferred for retail merchant locations where cost is a greater factor than thru-put. The initial cost for a dial-up machine is less than half that for a leased-line machine. The monthly operating costs for dial-up are only a fraction of the costs for leased-line. 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.

Conclusion

18 ATM is now introduced so many bank in almost all in the Globe.The commercial purpose of ATM is now demanding all among like students,service man,business man and so general people.Now it also preferred for blind man.User are save from danger like stealing money etc. Due to its advantages is more then its disadvantages,the popularity is now increased .From the above thesis ,the advanced future of ATM is almost bright.

VIDHYA BHARATHI INISTITUTE OF TECHNOLOGY (Approved by AICTE, Affiliated to JNTU)

PEMBARTHI, JANGAON, WARANGAL (A.P) 506201
(Sponsored by Hyndhavi Educational Society)

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CERTIFICATE
This is to certify that this Technical Seminar entitled AUTOMATIC TELLER MACHINE has been carried out by K.RAMESH (08J91A0436), and under my supervision guidance and submitted in partial fulfillment of the requirements for the award of B.Tech, in ELECTRONICS AND COMMUNICATION ENGINEERING BY Jawaharlal Nehru Technology University, A.P. during academic year 2011-2012 in department of Electronics and communication engineering.

Mr.G.VENU Assistant professor Guide Signature

MR.KRANTHI KUMAR (M.Tech) HEAD OF DEPARTMENT Electronics & communication engineering Signature

INDEX
Abstract...................................................................................1 Acknowledgement..2

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Introduction.............................................................................3 1.2 Names...............................................................................4 1.3 History...............................................................................5 1.4 Networking........................................................................5 1.5 Atm charges......................................................................5 1.6 Hardware and software.....................................................6 1.7 Reliability ........................................................................7 1.8 Security............................................................................7 1.9 Some atm manufacturers..................................................8 2.0 Parts of the machine.9 2.1 card reader9 2.2 Keypad.9 2.3 Speaker...10 2.4 Display screen....10 2.5 Receipt printer.......10 2.6 Cash dispenser...11 3.0 How do ATMs work.13 4.0 ATM security..14 4.1 Following tips for safe ATM usage15

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4.2 New innovations16 CONCLUSION18