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Business and Finance
 You're short on cash, so you walk over to the automated teller machine (ATM), insert your card into the card reader, respond to the prompts on the screen, and within a minute you walk away with your money and a receipt. Have you ever wondered about the process that makes your bank funds available to you at an ATM on the other side of the country? |
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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 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. Most of the ATM cards now are debit cards, as you can use them at most retailers that accept credit cards. There are exceptions. Some hotels only accept credit cards because it's easier, cheaper, and less of a risk to them than debit cards. It's easy to tell the difference between a plain ATM card and a debit card: A debit card has your name, 'credit' account number, the credit company's logo, the bank's logo and 'Debit Card' printed across the front of it; an ATM card has only your name, account number and bank's logo on the front of it. Both cards have strips on the back for the authorized cardholder to sign on. A debit card company, such as Visa, has agreements with banks to issue what looks like a Visa credit card. A Visa check card can be used at any retailer that accepts Visa credit cards and at ATMs worldwide. |
Sarnath |
Latest page update: made by Sarnath
, Oct 11 2008, 6:28 AM EDT
(about this update
About This Update
new story by sarnath
- Sarnath
441 words added 1 image added view changes - complete history) |
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