Automatic Teller Machines (ATM)
Automatic Teller Machines (ATM) is an electronic banking terminal that provides customers with access to financial transactions
- Characteristics and uses of ATMs:
- Withdrawing cash: Obtain money from a bank account
- Depositing cash or cheques: Add funds to a bank account
- Checking account balance: View the current balance of a bank account
- Mini statements: Obtain a summary of recent transactions
- Bill paying: Settle utility bills and other payments
- Money transfers: Send funds to another bank account
Electronic Funds Transfer (EFT)
- Characteristics and uses of EFT:
- Transfer of funds between bank accounts electronically
- Utilised for bill payments, salary deposits, and online purchases
- Utilises NFC in contactless payments
- The process of EFT:
- The data is read from the chip (using RFID / NFC if it’s a contactless payment)
- The business bank’s computer contacts the customer’s bank’s computer
- The card is checked if it is valid
- If the card is valid the transaction continues
- If it is not valid the transaction is terminated
- An authorisation code is sent to the business
- The price of the item is deducted from the customer’s account
- This money is added to the business’ account
