CONTENTS

Introduction History Usage Types of ATM Financial Networks & ATM How do ATMs work Hardware Sensing Bills Software ATM Security Future Technologies Related Devices

INTRODUCTION
ATM or Automated Teller Machine:
Computerized telecommunications device.

Banking terminal that accepts deposits and dispenses cash.

Also called Banking Machine, Money machine, Bank Machine (Canada), Cash Machine (New Zealand, UK), or Cashpoint (New Zealand, UK).

HISTORY
1st mechanical cash dispenser was developed and built by Luther George Simjian. De La Rue developed the first electronic ATM. The first person to use the machine was Ras Varney of On the Buses fame, a British Television programme. The first ATMs accepted only a single-use token or voucher.

The idea of a PIN stored on a physical card was developed by the British engineer James Goodfellow in 1965.

USAGE
The customer identifies himself or herself by inserting the card. The customer then verifies their identity by entering PIN.

Upon successful entry of the PIN, the customer may perform a transaction.
After the transaction is complete, a transaction record is printed.

Personal Identification Number

PIN is a secret numeric password shared between a user and a system that can be used to authenticate the user to the system. System compares the looked up PIN with the received PIN. Upon match the user is granted access.

PIN Security

PINs are often 4-digit numbers in the range 0000-9999.

Many PIN verification systems allow three attempts.

PIN hoax
While using ATM if some muggers attack at gunpoint for money then the police can be notified by entering the PIN in reverse order without the knowledge of mugger.

TYPES OF ATM
Types by physical characteristics: Mono-function devices Multi-function devices Types by installation locations: On premise machines Off premise machines

FINACIAL NETWORKS & ATMS

Two modes of networking: Logical Connections Physical Connections Logical Connection

Most ATMs are connected to interbank networks.

Helps in withdrawing money from others bank ATM. Enables in withdrawing local currency in a foreign country.

An ATM in the Netherlands. The logos of a number of inter bank networks this ATM is connected to are shown.

Physical Connection
ATMs connect directly to their ATM Transaction Processor via either a dial-up modem over a telephone line or directly via a leased line.

A Diebold 1063ix with a dialup modem visible at the base

HOW DO ATMS WORK?

ATMs have two input and four output devices. ATM connects and communicate through a host processor Most host processors can support either leased-line or dial-up machines. Leased-line ATMs are preferred for very high-volume locations. Dial-up ATMs are preferred for retail merchant locations where cost is a greater factor than throughput.

HARDWARE
An ATM is made up of the following devices:
CPU Magnetic and/or Chip Card Reader PIN Pad Display

Function Key buttons

Record Printer Vaults

A block diagram of an ATM.

Front View of ATM

Side View of ATM

SENSING BILLS
Cash-dispensing mechanism has an electric eye. Informations related to transaction is recorded in a journal. The cash-dispensing mechanism also has a sensor that evaluates the thickness of each bill.

SOFTWARE
Typical platforms used are RMX, OS/2, and Microsoft operating systems. Linux is also finding some reception in the ATM marketplace.

Common application layer transaction protocols provide emulation of older generations of hardware on newer platforms.

RMX (Real-time Multitasking eXecutive )

Real time operating system for the Intel 8080 and 8086. Developed in the late 1970s and originally released in 1980. It is a layered design. Each installation need include only the components required.

IBM OS/2
Created by Microsoft and IBM. Name stands for "Operating System/2 as the preferred operating system for IBM's Personal System/2 (PS/2). OS/2 was intended as a protected mode successor of MSDOS and Microsoft Windows.

ATM SECURITY
ATMs are attacked by ram-raiding and by using explosives. Transactional secrecy and integrity

Remote Key Loading techniques- ensure the secrecy of the initialization of the encryption keys in the ATM.
Message Authentication Code - ensure messages have not been tampered with while in transit between the ATM and the financial network.

Customer identity integrity

Methods used to verify cardholder identities:

Finger and palm vein pattern technologies Iris recognition technologies

Facial recognition technologies

Device operation integrity ATMs exposed to the outside are vandal and weather resistant: Covered by mechanical shutters. Alarm sensors are placed inside the ATM. Video Camers are placed inside the room.

FUTURE TECHNOLOGIES
Several different technologies on ATMs: Biometric Technology Bar code scanning. Dispensing additional media (such as phone cards) Co-ordination of ATMs with mobile phones.

RELATED DEVICES
Talking ATM

Scrip cash dispenser

ATMs for the Visually Impaired