The Basic in Banking: Anything You Need To Know About ATM

The Basic in Banking: Anything You Need To Know About ATM

Even though we are now living in a digital age, people sometimes find themselves needing cash-in-hand — that is where the Automated Teller Machines or the ATMs come in handy. For many years, they have been the most reliable and most convenient way to get access to your account instantly, whether you are withdrawing or depositing cash, paying bills or transferring funds to other accounts.

The big question is, are you sure you are getting the best experience possible out of Automated Teller Machines? For example, do you have access to ATMs when you are in a rush? Do you have a good idea about bank charges when using the machines? Is the ATM your best option in getting cash instantly? In this article, we will discuss the basics of Automated Teller Machines and take a good look at one of the most convenient money dispensing machines people use every day.

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What is an Automated Teller Machine?

ATM or Automated Teller Machine, or commonly known as cash dispensing machines or cash dispenser is a convenient and fastest way to get cash-in-hand.

In short, it is a machine that is often found in a bank, around the wall outside the bank or in public establishments where there are a lot of people like malls, hospitals, schools or train stations where you can enter the plastic card your bank issues, type in a Personal Identification Number and withdraw cash from your account. Most of the times, ATMs offer other services that let you take care of your everyday banking needs.

How can you find the nearest Automated Teller Machine in your area?

If you have ever gone for a night out or a dinner with your wife or girlfriend and realized that you forgot to bring enough money, you have probably asked yourself where the nearest ATM is in populated areas like cities or big towns, there have been usually a lot of ATMs around. As you would expect, they are situated inside or outside bank branches. But you can also find machines in areas where there are a lot of people like shopping malls, near public transportation terminals, or schools.

Automated Teller Machine charges

Do ATMs charge the cardholders every transaction? The answer is it depends on the situation or the place where the transaction happened. In some countries like the United Kingdom, a lot of ATMs are free of charge, but in countries like the United States, you need to pay for the transaction, especially if you withdraw cash from the machine owned by other banks other than the bank where you have an account.

To find out more about how ATM reimbursement works, click here.

It is a standard practice for a lot of people to only take money out of dispensing machines from the bank where they opened an account. Customers can keep an eye on any fees the bank imposed because legally, the bank should be stated during every transaction. But even if people know how much the bank is charging them every machine transaction, it does not mean that people will readily accept the fact that they are losing money every time they withdraw money from the machine.

Not only that, people can feel the pressure of paying for the convenience of having an Automated Teller Machine near them. But you need to remember that no matter what country you are in, there will be ATMs that are not operated by your preferred bank. There will always be transaction charges, so you have to be very careful when using cash dispensing machines.

Kinds of Automated Teller Machine

There are two kinds of money dispensing machine or ATM, bank owned machines and independent ATMs. Bank owned ATMs are run by a banking institution. Most of these machines that are owned by the bank can be found outside the branch. But you can also find bank-owned machines in other locations like shopping malls, transportation terminals or schools.

Aside from withdrawing money, you can also do other transactions from these ATMs like fund transfer,  cash deposit, bills payment or for online purchasing. Independently-owned machines like Greenstar ATM, are owned by individuals who bought the machines for business purposes. Independent ATM owners, as well as the bank, will both get a small percentage of the transaction fees every time customers use the Automated Teller Machine.

Most of these independent money dispensers are found in convenience stores, gas stations, restaurants and bars. If you are using machines that are not owned by the bank, you need to be careful and, always check for additional fees because when you are using independent ATMs, the machine owner or operator will charge you for every transaction instead of your bank.

Category Featured, Finance