Definition of ATM: (ATM)

An ATM is a physical device that allows financial transactions. ATMs have been around since 1967 and are traditionally associated with physical money transactions such as withdrawals and deposits. However, today they offer a wider range of services as standard, including online connectivity.


What is an ATM?

An automated teller machine (ATM) is a type of electronic banking terminal that allows customers to make basic transactions without the assistance of a branch representative or teller. Anyone with a credit or debit card can withdraw cash from most ATMs in the United States and abroad.

ATMs are convenient because they allow users to make quick self-service transactions such as deposits, cash withdrawals, bill payments and account transfers. Cash withdrawal fees are often charged by the bank where the account is opened, the ATM operator or both. Some or all of these fees can be avoided by using an ATM operated directly by the account owner’s bank. Using an ATM abroad can be more expensive than using one in the United States.

Automated teller machines are also known as ATMs.


Automatic teller machine (ATM) recognition 

The first ATM was installed at a Barclays Bank branch in London in 1967, although there are reports of an ATM being used in Japan as early as the mid-1960s.

 In the 1970s, inter-bank communication networks were established, allowing customers to use a card belonging to one bank at another bank’s ATM. 

ATMs have been spreading around the world for several years and are present in every major country. They can now be found on small island states such as Kiribati and the Federated States of Micronesia.


Varieties of ATMs

 ATMs are classified into two types. Customers can only withdraw cash and receive account balance updates at more simply arranged ATMs. More sophisticated machines accept deposits, process payments and credit line transfers, and access account information.

To access the advanced features of sophisticated ATMs, the user must  have an account with the bank that operates the machine.

Analysts predict that ATMs will become even more popular as withdrawals from them increase. The ATMs of the future are likely to be full-service terminals that replace or complement traditional bank tellers.


How to work with ATM?

ATMs are located both inside and outside banks. ATMs can also be found in high traffic areas such as shopping malls, grocery stores, convenience stores, airports, bus and train stations, gas stations, casinos, restaurants and other public places. Most ATMs in banks are multi-purpose, while those located off-site are designed primarily or entirely for cash withdrawals.

Customers must use a plastic card – either a bank debit card or a credit card – to make a transaction through an ATM. Users must be identified with a PIN before any transaction can take place.

Many cards include a chip that sends data from the card to the machine. They function much like a barcode scanned by a code reader.

ATM fees 

Account holders can use their bank’s ATMs for free, but a fee is usually charged when using an ATM owned by a competing bank.

Some banks will reimburse customers for the fee, mainly if there is no matching ATM nearby.

So if you withdraw your weekly money from an ATM, using the wrong machine could cost you 50 to 500 leva per year.

Possession of an ATM

Banks and credit unions often own ATMs. However, individuals and businesses can buy or lease ATMs on their own or through an ATM franchise. When individuals or small companies, such as restaurants or gas stations, own ATMs, the profit is based on charging user fees.

Banks also own ATMs for this purpose. They attract customers by using the convenience of the ATM. ATMs also relieve bank tellers of some of their customer service responsibilities, saving money on payroll costs.

Using ATMs abroad 

ATMs allow travelers to access their checking or savings accounts from almost anywhere on the planet.

Travel experts advise consumers to use foreign ATMs as a source of cash when traveling abroad, as they usually get a better exchange rate than most bureaux de change.

On the other hand, the account holder’s bank may charge a transaction fee or a percentage of the amount exchanged. Most ATM receipts do not include the exchange rate, making it difficult to track expenses.

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