ZIMSEC O Level Computer Science Notes: Hardware: ATM 

  • An automated teller machine (ATM) is an electronic device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, funds transfers, or account information inquiries, at any time and without the need for direct interaction with bank staff.
  • Anyone with a credit card or debit card can access ATM services at most ATMs.
  • Use a ZIMSWITCH card.
  • Are fitted on the outside walls of banks and shopping malls.
  • They operate 24 hours a day.
  • It is a self-service facility.
  • The customer follows on-screen instructions.
  • Upon request and verification the ATM machine displays the following information:
  • The maximum amount that can be withdrawn.
  • The account balance.
  • A mini-statement
  • It saves on labour and space.
  • Although the design of each ATM is different, they all contain the same basic parts:
  • Card reader: This part reads the chip on the front of the card or the magnetic stripe on the back of the card.
  • Keypad: The keypad is used by the customer to input information, including personal identification number (PIN), the type of transaction required, and the amount of the transaction.
  • Cash dispenser: Bills are dispensed through a slot in the machine, which is connected to a safe at the bottom of the machine.
  • Printer: If required, consumers can request receipts that are printed here. The receipt records the type of transaction, the amount, and the account balance.
  • Screen: The ATM issues prompts that guide the consumer through the process of executing the transaction. Information is also transmitted on the screen, such as account information and balances.

Advantages of ATM

  • Provide convenience to customers
  • ATMs provide 24 hours a day, 7 days a week and 365 days a year to all its customers.
  • ATMs have an efficient role in reducing the workload of the banking industry.
  • Accounts can be accessed by customers using an ATM from any part of the country or even worldwide.
  • Minimise transactions cost

Disadvantages of ATM

  • Customers performing online transactions using ATM are likely to be affected by various frauds. There is a chance of stealing various account information by online hackers while doing online transactions.
  • Banks in rural areas of our country have limited computerized branches and depends mainly on manpower for its various operations. 
  • There are limited ATM machines installed in rural areas which also do not operate properly.

To access more topics go to the O Level Computer Science Notes page