How They Work and Basic ATM Parts

There is hardly a machine that is more ubiquitous in this day and age than the automated teller machine (ATM). It is something we rely on in a pinch and it is something that makes modern personal finances an easy thing to manage. But ATMs are relatively complex in how they work and how they physically operate.

Because the purpose of ATMs is to dispense money, it makes sense that they would be subject to stringent regulations in both how they operate and the software that is used. Unlike many other products, owners of retail and other locations cannot directly control or operate their ATMs unless they have a sponsoring agreement with what is called an ATM deployer. They also need a sponsoring agreement with a switching company as well as a bank or financial institution of some kind.

ATMs are essentially basic computers but with additional ATM parts that allow for specific functions, allowing the software that is running on the computer to carry out the functions. They can break or malfunction just like any other computer. Since there are so many specialized functions in an ATM, there needs to be a readily available source of approved ATM spare parts for maintenance.

Parts of an ATM include:

✥   Card Reader. This reads account information that is stored on a magnetic strip, the one that you always see on credit and debit cards. The data retrieved is passed on to a host processor, which in turn is able to interpret the information and retrieve the customer’s account information.

✥   % Keypad. This allows customers to input the information they need to give. It lets them input their personal identification or pin code, select what type of transaction they want to make, and generally communicate with the ATM software.

✥   Speaker. This allows the customer to hear when keys are being pressed on the keypad, but it may also allow for additional voice features on certain ATMs.

✥   Receipt printer. Although much of the process of an ATM is digital, printed receipts are requested by many or most ATM customers. This ATM part makes this possible.

✥   Cash dispenser. The main purpose of an ATM is for a customer to acquire cash, so of course this is the most important part. The cash dispenser is a pivotal part and a part that is highly sophisticated.