Acb3 16
Acb3 16
Acb3 16
Learning Guide
Unit of Competence Maintain Automatic Teller Machine (ATM)
Services
Module Title Maintain Automatic Teller Machine (ATM) Services
LG Code: BUF ACB3 16 0812
INTRODUCTION
INFORMATION SHEET
ATM Processing
Many companies require a minimum number of surcharge-able ATM transactions
on a monthly basis. Cash on Cash ATM does not charge to process your ATM
transactions. You get a 100% of your surcharge.
operate an ATM card, the customer has to inset the card in the machine. He has to enter the pass
word (number). If the authentication or pass word (number) is correct, the ATM permits a
customer to make entries for withdrawal or for deposit. On completion of the transaction, the
customer's card is ejected from the ATM.
ATMs provide service round the clock. The customer can withdraw cash upto a certain a limit
during any time of the day or night.
ATMs provide convenience to the customers. Now-a-days, ATMs are located at convenient
places, such as at the air ports, railway stations, etc. and not necessarily at the Bank's premises. It
is to be noted that ATMs are installed off-site. (away from bank premises) as well as on site
(installed within bank's premises). ATMs provide mobility in banking services for withdrawal.
ATMs reduce the work pressure on bank's staff and avoids queues in bank premises.
ATMs provide service without error. The customer can obtain exact amount. There is no human
error as far as ATMs are concerned.
The customer also gets brand new currency notes from ATMs. In other words, customers do not
get soiled notes from ATMs.
ATM
automatic teller machine
Editor: Cornelis Robat
USA 1968-1969
inventors An automatic teller machine or ATM allows a bank customer t
from almost every other ATM machine in the world. Don Wet
conceptualist of the automated teller machine, an idea he thoug
bank. At the time (1968) Wetzel was the Vice President of Pro
that developed automated baggage-handling equipment. The o
were Tom Barnes, the chief mechanical engineer and George C
took five million dollars to develop the ATM. The concept of t
working prototype came about in 1969 and Docutel was issued
hardware
software
Jack Gebhart had the idea to put the magnetic stripe on the ban
information. This information could then be read by a reader, a
turn is connected to a computer. (4)
Bank automation started as early as 1939 with the invention of the ATM by Luther George Si
Simjian came up with the idea of creating a hole-in-the-wall machine that would allow customer
idea met skepticism but he persuaded what is now Citicorp to give it a trial. After six months, the
demand. "It seems the only people using the machines were a small number of prostitutes and ga
tellers face to face," wrote Simjian. (4)
1960
ATM predecessor installed: New York's First National City Bank (now CitiBank) installs a B
The idea is for customers to pay utility bills and get receipts without having to see a teller.
1967
Cash dispensing machine at Barclay's Bank in London. June 27
On June 27 1967 De La Rue wins the race to unveil the first machine, drawing crowds to the unv
The concept is developed by John Shepherd- Barron. He came up with a self-service machine wh
basis. The first of this type of machines will be installed outside a north London branch of Barcla
It uses paper vouchers bought from tellers. The machine is called the De La Rue Automatic Cash
1968
Card-eating: Barclays and a few other banks introduce a machine that encodes cash on plastic
problem is that the machine always eats the cards, and customers have to buy new cards if they w
1969
First use of ATM magstripe cards: Docutel installs its Docuteller machine at New York's Che
first use of magnetically encoded plastic.
Chemical Bank's ad campaign announces: "On Sept. 2, our bank will open at 9:00 and never clos
Other manufacturers get into the game, but Docutel is the first to apply for a patent. Docutel is la
National Museum of American History as being the ATM’s inventor. But most people in the ind
as the first modern magstripe machine.
Donald C. Wetzel is given credit for developing the Docutel machine, which is initially met with
they’re concerned about the machine’s cost, which is about $8,000 more annually than a human
customers won’t like having a machine handling their money. (8)
Balancing costs
•To remain competitive in the activity of cash replenishment of ATMs
careful management of costs
•Optimal performance is attained by trading off costs against one anot
result
Cash Management is a balancing
act between:
Cash outs
Availability Cash
Why change? decision making
•Ever-increasing competition leaves
little room for inefficient players
•Greater regulatory control is squeezing
cash inventory levels
•Increasingly centralized control is
removing local knowledge from the
replenishment decision
•The tools are available to help with
•Residual balances
–The opportunity represented by surplus cash in ATMs and
branches that could be invested elsewhere
•Re-bank fees
–The cost of reprocessing unused cash
•Cost of cash
–A factor for independents that need to buy in cash
•Insurance
– Increased premiums to cover security risks
Carrier Costs
•Contractual delivery fees
–Standard fees agreed with the carrier within a regular
delivery schedule
•Emergency deliveries
–Increased fees paid if unforeseen demand patterns occur
Operational Issues
•Avoid cash outs!
–Unavailability of ATM machines has negative impact
on reputation
–Potential loss of ATM revenue through transaction fees
•Branch limits
–Security and insurance limits
•Regulatory frameworks
–Tighter control on flow and utilisation of cash
Can we improve?
•Cash Management processes CAN
be improved
•Leading industry players show
this
•No longer the domain of
trailblazers –this is mainstream
business practice
•The objective is OPTIMISATION
First true bank ATMs: Docutel introduces its Total Teller, the first true fully functioning bank
1973
Proliferation begins: By 1973, 2,000 ATMs — mostly from Docutel- are operating in the Uni
each.(8)
Diebold begins work on the development of its TABS 600 with plans for an off-line prototype
1974
Diebold’s first TABS 500 machine, an off-line version, is installed at a bank in Atlanta.
Diebold develops the TABS 550, an on-line and off-line version. The flexibility of the machine m
banks.
The TABS 600 also is developed.(8)
1977
Chungho ComNet Co., Ltd. begins developing Teller Machines for banks.
1978
1979
1983
Chungho ComNet Co (Korea) begins selling On-line Teller Machines. Machines like this now
lines with the bank's mainframe computers. In later years this connection is regarded as too high
records will only be updated once to several times a day.
1994
ICL, the IT services company, has designed the first cash dispenser (CD) with a bill paying fa
The new CD incorporates a barcode scanner, which allows customers to pay bills automatically f
traditional cash withdrawals and to check account balances.
Banque du Caire, Egypt’s third largest bank, is the first organisation to adopt the new technology
and offer customers a more convenient service. ICL will design and integrate 100 new cash disp
£2.4million.
The first people to be able to use the service will be customers of an Egyptian national mobile ph
incorporate a barcode holding details of the amount due, as well as their bank account number at
simply sweeps the barcode over the scanner at the cashpoint, keys in their PIN number and the b
1 text: inventors.about.com
2 Cash Technologies, inc.
3 smithsonian: picture of ATM and inventor
4 David Pryor provided the name of the 'missing' engineer and his contribution to
the project
5 http://web.mit.edu/invent/iow/simjian.html
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ATMs provide service round the clock. The customer can withdraw cash upto a certain a limit
during any time of the day or night.
ATMs provide convenience to the customers. Now-a-days, ATMs are located at convenient
places, such as at the air ports, railway stations, etc. and not necessarily at the Bank's premises. It
is to be noted that ATMs are installed off-site. (away from bank premises) as well as on site
(installed within bank's premises). ATMs provide mobility in banking services for withdrawal.
ATMs reduce the work pressure on bank's staff and avoids queues in bank premises.
ATMs provide service without error. The customer can obtain exact amount. There is no human
error as far as ATMs are concerned.
ATMs are of great help to travellers. They need not carry large amount of cash with them. They
can withdraw cash from any city or state, across the country and even from outside the country
with the help of ATM.
The customer also gets brand new currency notes from ATMs. In other words, customers do not
get soiled notes from ATMs.
ATM
automatic teller machine
Editor: Cornelis Robat
USA 1968-1969
inventors An automatic teller machine or ATM allows a bank customer to conduct
other ATM machine in the world. Don Wetzel was the co-patentee and c
machine, an idea he thought of while waiting in line at a Dallas bank. At
President of Product Planning at Docutel, the company that developed au
other two inventors listed on the patent were Tom Barnes, the chief mech
electrical engineer. It took five million dollars to develop the ATM. The
working prototype came about in 1969 and Docutel was issued a patent i
in a New York based Chemical Bank. (note(1): There are different claim
Don Wetzel's reference:
The first voucher based cash dispensing machine was installed in 1967 b
however, do not consider this an ATM. The first modern day ATM was
Don Wetzel(3) Chemical Bank.(2)
no picture: "No, it wasn't in a lobby, it was actually in the wall of the bank, out on th
Tom Barnes, chief it from the rain and the weather of all sorts. Unfortunately they put the ca
mechanical engineer; (laughing) One time we had water in the machine and we had to do some
George Chastain, electrical engineer. outside of the bank. That was the first one. And it was a cash dispenser o
Jack Gebhart, engineer dispenser, and then the next version was going to be the total teller (creat
today -- takes deposits, transfers money from checking to savings, saving
James Goodfellow
card, takes payments; things like that. So they didn't want just a cash disp
Luther George Simjian installed at the Rockville Center, New York Chemical Bank from a NMA
John Shepherd-Barron's
hardware
software
Jack Gebhart had the idea to put the magnetic stripe on the bankcard to carry the custom
by a reader, also from Jack Gerbhart, which in its turn is connected to a computer. (4)
History shows it was Luther George Simjian to develop the idea in 1939, thou
(see timeline).
James Goodfellow in Scotland holds a patent dated of 1966 for a full service A
But what about John Shepherd-Barron's machine installed outside a north Lon
The free standing ATM from 1968? It were Don Witzel, Tom Barnes, George
Docutel in the US.
Timeline
1939
Bank automation started as early as 1939 with the invention of the ATM by Luther George Simjian (1905-19
Simjian came up with the idea of creating a hole-in-the-wall machine that would allow customers to make financ
he persuaded what is now Citicorp to give it a trial. After six months, the bank reported that there was little dema
machines were a small number of prostitutes and gamblers who didn't want to deal with tellers face to face," wro
1960
ATM predecessor installed: New York's First National City Bank (now CitiBank) installs a Bankograph in se
to pay utility bills and get receipts without having to see a teller.
1967
Cash dispensing machine at Barclay's Bank in London. June 27
On June 27 1967 De La Rue wins the race to unveil the first machine, drawing crowds to the unveiling.
The concept is developed by John Shepherd- Barron. He came up with a self-service machine which dispenses pa
type of machines will be installed outside a north London branch of Barclays Bank in 1967.
It uses paper vouchers bought from tellers. The machine is called the De La Rue Automatic Cash System, or DA
1968
Card-eating: Barclays and a few other banks introduce a machine that encodes cash on plastic cards purchase
machine always eats the cards, and customers have to buy new cards if they want to make more transactions. (8)
1969
First use of ATM magstripe cards: Docutel installs its Docuteller machine at New York's Chemical Bank. Th
magnetically encoded plastic.
Chemical Bank's ad campaign announces: "On Sept. 2, our bank will open at 9:00 and never close again!"
Other manufacturers get into the game, but Docutel is the first to apply for a patent. Docutel is later credited by t
American History as being the ATM’s inventor. But most people in the industry recognize Docutel’s first machin
Donald C. Wetzel is given credit for developing the Docutel machine, which is initially met with resistance from
the machine’s cost, which is about $8,000 more annually than a human teller. The bankers also fear that custome
money. (8)
1971
First true bank ATMs: Docutel introduces its Total Teller, the first true fully functioning bank ATM.
1973
Proliferation begins: By 1973, 2,000 ATMs — mostly from Docutel- are operating in the United States. They
Diebold begins work on the development of its TABS 600 with plans for an off-line prototype. (8)
1974
Diebold’s first TABS 500 machine, an off-line version, is installed at a bank in Atlanta.
Diebold develops the TABS 550, an on-line and off-line version. The flexibility of the machine makes it unique a
The TABS 600 also is developed.(8)
1977
Chungho ComNet Co., Ltd. begins developing Teller Machines for banks.
1978
1979
1983
Chungho ComNet Co (Korea) begins selling On-line Teller Machines. Machines like this now have a direct c
mainframe computers. In later years this connection is regarded as too high risk open for fraud and the machines
times a day.
1994
ICL, the IT services company, has designed the first cash dispenser (CD) with a bill paying facility.
The new CD incorporates a barcode scanner, which allows customers to pay bills automatically from their bank a
withdrawals and to check account balances.
Banque du Caire, Egypt’s third largest bank, is the first organisation to adopt the new technology in a bid to redu
more convenient service. ICL will design and integrate 100 new cash dispensers for the bank in a deal worth £2.
The first people to be able to use the service will be customers of an Egyptian national mobile phone network. T
holding details of the amount due, as well as their bank account number at the Banque du Caire. The customer si
the cashpoint, keys in their PIN number and the bill is paid.
1 text: inventors.about.com
2 Cash Technologies, inc.
3 smithsonian: picture of ATM and inventor
4 David Pryor provided the name of the 'missing' engineer and his contribution to
the project
5 http://web.mit.edu/invent/iow/simjian.html
6 http://www.atmmachine.com/atm-inventor.html
7 (According to the article written by Invention & Technology’s Mike Lee, John
Shepherd-Barron — the cash dispenser’s inventor qq claims that the paper
vouchers are actually checks impregnated with Carbon 14.)
8 tom Harper, NetWorld Alliance; Source: Jerry Larson, who helped to develop
Diebold’s TABS 500, 550 and 600
Check out our questions from 70-413 written by our certified teams to help you pass. Our 642-
993 testking practice test collection that definitely always give you more than your expectation.
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questions collection with best quality? Just visit it out
Cash Loading
Cash on Cash offers cash loading services for most ATMs in the Southern California area.
Whether you currently have an ATM and need an outside company to run the daily cash flow
needs or a looking for a turnkey ATM service, we can help!
Cash on Cash has a team of private cash couriers and armored car guards that can stock your
ATMs. Our cash loading services cover areas as far south as San Diego and as far east as
Palm Springs.
All cash loading is monitored by a combination of online reporting and email alerts to ensure
machines never run out of cash. Additionally, Cash on Cash ensures its machines are well-
stocked for special events and seasonal opportunities for maximum machine uptime.
Cash on Cash also provides cash services for other ATM companies, especially national ATM
companies for which a local ATM company is a better fit than a nationwide ATM solution. See
why our customers rate our ATM Programs #1.
ATM Replenishment
Brink’s ATM services help reduce risk, optimize cash levels and maximize transaction volume.
Brink’s trained ATM service personnel and armored vehicles replenish machine cash, balance
the machines, and report the settlement data with consolidated electronic reporting. In many