What are the components of ATM explain in brief? (2024)

written 2.0 years ago bypradnyanabar2613 ★ 5.2k

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ATM Components

Card readers, cash dispensers, PIN pads, receipt printers, and monitors are some of the basic hardware components that go into all ATMs. Many ATMs also have components for wireless connectivity, check to scan, or even dispensing gift cards.

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:

1. Card Reader. This reads account information that is stored on amagnetic strip, the one that you always see on credit and debitcards. The data retrieved is passed on to a host processor, which inturn is able to interpret the information and retrieve thecustomer’s account information.
2. Keypad. This allows customers to input the information they need togive. It lets them input their personal identification or pin code,select what type of transaction they want to make, and generallycommunicate with the ATM software.
3. Display screen. Like any computer, this allows customers to see eachstep of the process or transaction they are doing.
4. Speaker. This allows the customer to hear when keys are beingpressed on the keypad, but it may also allow for additional voicefeatures on certain ATMs.
5. Receipt printer. Although much of the process of an ATM is digital,printed receipts are requested by many or most ATM customers. ThisATM part makes this possible.
6. Cash dispenser. The main purpose of an ATM is for a customer toacquire cash, so of course, this is the most important part. The cashdispenser is a pivotal part and a part that is highly sophisticated.

Getting new and quality parts for your ATM is economical in the long run and will prevent headaches down the line. New parts include recent updates that the part may have needed or changes to the manufacturing process that the old part would not have. Keeping parts up-to-date keeps the machines running to recent and legal standards. Do you ever hear about ATMs spitting out cash out of nowhere? Sometimes those are due to faulty ATM parts. Make sure the parts and pieces of your ATMs are of high quality and feel secure in them being out in the field.