An Overview of ATMs

Many people may find it hard to remember a time when they conducted most of their banking transactions with paper checks, withdrawal slips, and deposit tickets. For those who have literally grown up with electronic technology, ATM services have likely always been a part of their lives. Going to the bank for many people, in fact, rarely refers to actually stepping inside the financial institution and interacting with a teller, but in fact means using automated teller machines. Financial institutions completely without ATMs would be anomalies, as full service now includes comprehensive ATM services.

The ATM Predecessors

Long before the current network system that most people are familiar with, ATM predecessors were installed at some of the larger banks in various locations around the world. While not true automated teller machines, they nonetheless paved the way for the devices and ATM services currently used. Highlights of ATM history include:

• The Bankograph, installed in 1960 in First National City Bank, New York City
• A Cash Dispenser, installed in 1967 in Barclays, London
• A Card-Eating Machine, installed in 1968 in Barclays, London

The idea behind the aforementioned devices was to provide another way to complete at least some routine transactions. The Bankograph was conceived as a way for people to pay their utility bills and receive a paper confirmation without interacting with a teller. The cash dispenser, however, required the use of paper vouchers that customers had to buy from bank tellers before using the machine. Likewise, the card-eating machine left customers needing teller assistance to get new cards for their next transactions.

The Next Wave

By 1969, ATM services were increasingly moving in the direction that most people who use ATMs are accustomed to. This included changes in the plastic cards and new ways of advertising ATM services. The next round of developments included:

• Magnetically encoded ATM cards
• Ad campaigns focusing on ATM services
• Patent applications by Docutel

While many people debate when the first true ATMs came into existence, the Docutel machine installed at Chemical Bank in New York was the first to use plastic cards with the familiar magnetic stripes. Perhaps not surprisingly, Chemical Bank soon began marketing this new addition as a means of providing banking services well beyond traditional business hours. Despite the other manufacturers that looked to provide ATM services, Docutel is widely considered to be the inventor of the automated teller machine, as they were the first to apply for an ATM patent. Other early manufacturers included:

• Diebold
• Fujitsu

The Docutel machine, developed by Donald C. Wetzel, was not well received initially, as bankers worried about the higher annual cost of operating such devices. Bankers worried that their customers would not be comfortable allowing a machine to manipulate their money as well. In spite of these valid concerns, ATM services were advanced by:

• The Total Teller, unveiled by Docutel  in 1971
• Proliferation by Docutel and Diebold in 1973
• On-line ATMs introduced in 1974

A Final Word on ATM Services

Improved production techniques, lower costs, and the potential to provide innovative ATM services saw a rapid increase in the manufacture and sale of ATMs throughout the 1970s, leading to the highly serviceable machines consumers are now used to. Any financial institution looking to grow their business and provide superior customer service would likely benefit from working with a professional ATM provider like this website, to ensure that their ATM services meet consumer demand.

ATMs and Credit Card Usage: Will it Work for You?

In keeping with the steady demand for remote or non-traditional access to financial services, ATM services have likewise been expanded to handle more than just the occasional withdrawal of small sums of cash. Having a debit card can certainly make things easier when you need quick cash after normal banking hours have ended, but being able to use a credit card at ATM may allow you to complete many routine but important transactions. Likewise, financial institutions that accept credit cards at their automated teller machines may garner new business and customers as well.

Credit Cards and ATM Services

Your credit card may give you greater financial flexibility, particularly if your work or personal life frequently takes you away from nearby bank branch locations. Accordingly, you may have a much easier time of finding an institution that accepts your credit card as well. While your debit card may have a relatively low daily withdrawal limit, using your credit card may allow you to perform ATM services such as:

• Cash advances
• Deposits
• Bill pay

While performing a large cash advance may mean paying a fee, the amount may be considered nominal depending upon the circumstance and need for the cash. Likewise, being able to complete more complicated deposits at a machine that is part of an integrated network may be invaluable as well. Some ATM services even allow cardholders to use their machines to pay phone, utility, and other customary but important bills. Fully integrated networks may let you complete sophisticated ATM services including:

• Accessing bank statements
• Transferring funds
• Updating financial records
• Buying train tickets
• Securing movie or concert tickets
• Adding credit to prepaid cell phones
• Initiating loans

Being prepared to use ATM Services

While all automated teller machines may not be equipped to handle such impressive ATM services, being able to use your credit card for basic transactions may be especially advantageous during an emergency. Accordingly, you should verify what you can and cannot do with your credit card before you travel or intend to rely on it for cash. You may be able to easily access your available funds if you have:

• Your personal identification number  
• A customer service phone number or contact
• An undamaged card

Many companies assign PIN numbers along with their cards, allowing customers to use ATM services as soon as possible. If you do not have a PIN or need a new one, requesting one in as far advance as you can would be strongly advised, as such sensitive information is often delivered only through secure and potentially slower channels.

Making the most of ATM Services

As this website stated, one of the best ways to make using ATM services with your credit card less costly is to avoid machines with low withdrawal limits and ideally get the cash you need in one transaction. Machines that accept credit cards are often sought out and are increasingly popular with consumers. Accordingly, many financial institutions would likely benefit from working with a reputable ATM provider that offers as many enticing ATM services as possible as a way to increase revenue and expand their customer base.