An Automatic Teller Machine (ATM)
An Automatic Teller Machine (ATM)
Introduction
An automatic Teller Machine (ATM) enables bank clients to withdraw their money without encountering a bank attendant. The machines are available worldwide, and clients from a given bank can use an ATM in a different bank; however, this goes with a charge of some fee. At their invention people never trusted them; they feared that they would lose their money to the machines. The ATM’s basic concept and design had a undergone transformation after invention. The methods of ensuring security and encryption are being changed and improved constantly. Without an ATM, banking would be tedious as people will have to use the crowded banking halls; it will also be insecure to carry money around, and places for accessing money will be limited.
What if there was no Automatic Teller Machine (ATM)?
ATM is widely used by people for different purposes related with money. Many people like to use ATM for various reasons. People say that they are convenient and secure to use. There are many advantages, which came with the invention of ATM. Nonetheless, there are some disadvantages attributed to use of ATM. Some users still fear about the safety of their cash while using ATMs. They fear that, after depositing their cash through the ATM, it will disappear after getting into the wrong hands. ATM are currently used for various functions; some use them for business while others use them for personal use (Stock & Staiger, 560).
The use of ATM provides investment opportunities in business. These opportunities are rewarding, secure and are easy avenues for business investment available t a common business person. All people want to increase their income levels without having to strain a lot. In this regard, ATM is the leader. If there were no ATMs, then this category of investors would be left out in business.
In the stock market, investors are in the gambling business. Stocks rise and go down in the stock market. After going down, they take the money of the investor with them. When using the ATM business investment, costs for startup are minimal and there is surety of getting rewards. This makes investment in automated teller machines to be extremely attractive. Again, asking the question on what would be the case if ATMs were not invented. The answer would be that they would be without jobs and increase the unemployment level of a country.
The ATM business investment aspect that attracts the majority of investors is because income from ATM is residual and consistent. A placement for ATM is a viable location, and with a massive traffic which in turn guarantees profit. This translates into a constant flow of income and profits. This implies a constant flow of income to the bank account of the account owner. When in need of an opportunity business investment, most people do not want to invest in the short term business but rather long term businesses.
The majority of Americans possess ATM cards, and they withdraw and deposit cash frequently. This implies that they would require a well-placed ATM which makes the machines a necessity in life. The investment in business related with ATM is extremely viable. If there were no ATMs around, those in need of withdrawing and depositing, will face challenges as they will have to use banking halls, which are not convenience (Tirole, and Rochet, 560).
ATM security is extremely high. The encryption of PIN ought to take place on an encrypting PIN pad. This will avoid the PIN compromise after the terminal clears. The blocks for ATM should not be stored in ATM log files. Doing this will threaten the security of the ATM. There should be established of secure remote access. Having a remote access ensures that users will have access to the services when they need them. When ATM services are introduced in an area, it acts as a revolution for business in that area. Failure to have ATM in an area disadvantages users in that they would not have access to the ATM which is considered more reliable and convenient.
Visiting an ATM enables someone to perform many transactions that can be performed while inside the bank. Money can be deposited and withdrawn, access a home equity line of credit, transfer money between different accounts, buy stamps and deposit checks. Human tellers will remain relevant; however, ATMs offer a certain amount of convenience designed for accommodating clients. This would be different in the event that there was no invention of ATM.
Any investment has intentions of making money. If one goes to an ATM different from his or her bank, he or she pays a fee which ranges from $1.50 to 3.50. This amount varies from bank to bank. A majority of people prefer using ATMs from their banks to reduce these charges. Banks make considerable amounts of money in the form of fees from these transactions. In addition, if a client does not record the transactions they could overdraft their account, which would result to further charges. If there were no ATMs, it would be hard for banks to raise this income. Therefore, invention of ATM was also useful to the banks as it increases their revenue would have rather gone unnoticed (Salop, 142).
Some ATMs are in use internationally. The ATMs can be accessed from different countries. For people who are travelling, for business trips, vacation or visiting relatives, ATM has offered means for crossing boundaries in relation to banking. Travelers do not have to bother of where to get money while in the new country. If there were no ATM, these problems would still be bothering travelers. They would be carrying their cash by papers or bags. This method is not secure since and may cause lose of money when the owners are hijacked. Therefore, invention of ATM was a vital step in reducing cases of loss of money by people, especially those travelling.
Although ATMs came with considerable benefits, they also have some downfalls. For instance, invention of ATM offered novel methods for scammers to undertake fraudulent deals. Some people were depositing envelopes that were empty and key in some dollar amount like $400 hence withdraw the amount. Suppose this problem was let uncorrected, they would steal cash of the bank. However, majority of banks have put measures in place for stopping this problem. If ATMs were not there, then banks would not lose money through this problem.
Other advanced fraud in the use of ATM is through electronic data interceptions. This leads to confidentiality being broken and unauthorized people getting access to confidential data, which they should not see. This also amounts to the transaction being done to the wrong person. The owner of the account may lose the cash and fail to notice. This is a common problem in United States, and they should be controlled. If there were no ATM, these problems would stay without been heard (Yogo, et al, 520).
There has been other critical which involve burglary of the entire ATM. This led to danger of losing money the bank had deposited in the ATMs together with those deposited there by the clients. Other grave mistake done is vandalism; this involves having people sale destroy the ATMs and taking the money that had been deposited in there. This is a loss to the bank as well as the clients.
There has been fraudulent use of ATM whereby ATM cards gotten from unsuspecting customers via dummy ATMs, which end up keeping their cards. For scammers who can retrieve the accounts details, it becomes tricky as they can operate the account and withdraw cash from the account.
Conclusion
In conclusion, it can be noted that although clients the invention of ATMs brought a considerable revolution in the banking sector. People can access their accounts from different places of the globe; this has made banking easier as people cherish use of ATMs to get access into their accounts. Use of ATM is more secure than carrying money in cash form. Use of ATM has made banking easier as many activities can be done using the ATM. This comprise of depositing money, transferring the cash into a different account and checking balance among others. If ATM had not been established, people would be facing difficulties in banking. It would be extremely inconveniencing and time consuming to bank using the manual banking systems.
The advantages for using ATM are many, and they surpass the negatives which come with it.
Memorandum
To:
From:
Date: November 16, 2012
Subject: What if there were no Automatic Teller Machines
An automatic Teller Machine (ATM) enables bank clients to withdraw their money without encountering a bank attendant. The machines are available worldwide, and clients from a given bank can use an ATM in a different bank; however, this goes with a charge of some fee. At their invention people never trusted them; they feared that they would lose their money to the machines. The ATM’s basic concept and design had undergone a transformation after invention. The methods of ensuring security and encryption are being changed and improved constantly. Without an ATM, banking would be tedious as people will have to use the crowded banking halls; it will also be insecure to carry money around, and places for accessing money will be less in number.
The use of ATM provides investment opportunities in business. These opportunities are rewarding, secure and are easy avenues for business investment available t a common business person. All people want to increase their income levels without having to strain a lot. In this regard, ATM is the leader. If there were no ATMs, then this category of investors would be left out in business.
Some of the disadvantages of using ATM include high costs, competition from others forms of transactions. They are flexible to expense of efficiency; there is burglary in ATM which results to loss of money.
Copy to:
References
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