In this article, we’re answering “What is the full form of ATM?”
But, instead of keeping you guessing, ATM is the abbreviation for Automated Teller Machine. An ATM is therefore a machine that lets you perform certain bank transactions without visiting a teller in person.
We’ll break down the specific tasks that you can complete using an ATM below, along with a more detailed explanation of what an ATM really is.
This is part of our free series on banking, covering topics like choosing where to bank and opening an NRI bank account, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- What Is the Full Form of ATM?
- How to Use an ATM?
- Functions of an Automated Teller Machine?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
What Is the Full Form of ATM?
The full form of ATM is Automated Teller Machine. In other words, the term “ATM” is an abbreviation for the name of machines that allow bank customers to perform certain transactions without physically visiting a branch of their bank.
The specific transactions that an account holder will be able to complete at an ATM, will depend on their bank, the type of account they have, and any restrictions that may apply to their account activity.
That said, in most cases, ATM transactions include making and processing deposits, withdrawing cash, confirming account balances, funds transfers, paying certain bills, and more. We will review these and other ATM-supported activities below.
But first, beyond knowing the full form of ATM, let’s answer “How does an ATM work?”
How to Use an ATM?
In order to understand how to use an ATM, you also need to know what is needed to use an ATM. In general, an account holder will need to have the ATM card or debit card tied to the account they want to access, the security PIN to authorize the account access at the ATM, and any of the additional materials (e.g. cheque, cash, etc), to complete their desired transaction.
With this in mind, the first step in using an ATM is inserting the ATM or debit card and verifying account ownership by inserting the security PIN. Once verified, the ATM reads the card and accesses the relevant account information.
The account holder can then use the navigation menu to choose the specific type of transaction(s) they want to complete. Once the account holder completes their desired transaction(s), they can end the session and the ATM machine will return the card to them.
Now that you know the full form of ATM and how ATMs work, let’s take a closer look at a few of the most common transactions that people use ATMs to complete.
Functions of an Automated Teller Machine?
The primary functions of an Automated Teller Machine (ATM) include dispensing cash, accepting deposits, processing various transactions, confirming information, and more. Here is a closer look at a few of the most common types of transactions people complete using an ATM.
Withdrawing cash from an ATM is a convenient and efficient way to receive funds. When using an ATM, you do not need to wait in line at a branch or schedule your time around branch hours.
Check Your Bank Account Balance
If you do not have access to mobile or online banking, you can use an ATM to check the balance of your account.
Transfer Funds at an ATM
In addition to withdrawing funds, certain banks allow account holders to transfer funds directly from ATMs. This can include transfers to specific utility providers, financial institutions, or a wider range of transfer recipients.
Do ATMs Charge Fees?
Yes, ATMs charge fees for certain transactions. However, depending on the type of transaction, type of account being accessed, and where you are using an ATM, you may not incur any fees or you may face higher fees.
With this in mind, it is important to confirm your bank’s fees for using an ATM (or debit) card prior to accessing ATMs. This is especially true because most banks have certain transaction allowances, after which they start to charge fees to account holders.
Additionally, it’s important to note that the fees that an account holder faces when using an ATM domestically are often different from those that they face abroad.
Will You Be Charged for Using an ATM Abroad?
Yes, you will be charged for using an ATM abroad. Depending on the specific bank or ATM machine provider that you decide to use while traveling, you may find that they charge significantly higher fees than your own bank. However, it’s important to note that your own bank typically charges higher fees for overseas transactions as well.
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Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into what the full form of ATM is. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
Can You Make a Deposit at an ATM?
Yes, you can make a deposit at an ATM. However, most banks require that the deposit be made at an ATM within their specific bank network. In other words, in order for a deposit to be completed, the card and the ATM being used need to be from the same bank.
What Is ATM in Banking?
In banking, the term “ATM” stands for Automated Teller Machine, which is a machine that allows account holders to complete banking transactions without physically visiting a branch of their bank.
How Do I Deposit a Cheque Into an ATM?
To deposit a cheque into an ATM, you need to first insert your ATM (or debit) card, verify your security PIN to authenticate the account, use the navigation menu to select deposit, and then follow the steps on the screen.
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