When you enter an ATM kiosk you find an ATM (Automated Teller Machine) consisting of the following;
a). Video display monitor,
b)Keyboard/keypad, c)touch screen.
c) Inside the ATM, a host computer is attached which is connected to the ATM network.
d) Besides, the computer there are slots inside the ATM for various purposes viz. card reader, cash dispenser, envelope dispenser, Cash deposit slot, etc.
The cards used in ATMs are plastic cards with magnetic strips or cards embedded with small chips. The commercial banks in India, issue ATM cards viz. Debit Cards, Credit Cards, and Pre-paid cards, to their customers on request. When a cardholder visits the ATM kiosk, it prompts the cardholder to authenticate themselves, by inserting the ATM card on a slot provided in the machine. A host computer is connected or communicated via a network to ATMs. On insertion of the ATM card in the ATM, the host computer supplies electronic data of card users’ accounts, and the crypto-processor inside the ATM encodes the magnetic stripe or EMV chip of the ATM card. The ATM validates the card for operation on scrutiny of card user’s data and security features of the card. After the validation process, the cardholder will be prompted to enter the numeric password which is commonly known as PIN* (Personal Identification Number). If the PIN is correctly entered, the ATM permits operation to the user viz. to verify the balance in the account, deposit cash or withdraw cash, request for a chequebook or request for a statement of account, etc.
*The PIN is a randomly generated sequence of digits that is printed on a paper sealed and delivered to the cardholder at the time of issuance of the card to the customer.
Electromagnetic Card:
An electromagnetic card, also known as a magnetic stripe card, is a card that stores information on a magnetic stripe that can be read by swiping or inserting the card through a card reader which detects the magnetic field generated by the strip.
RBI vide its circular dated May 7, 2015, advised all the banks and card payment networks that with effect from September 01, 2015, all new debit and credit cards (domestic and international) shall be only EMV ((EMV full form is for Europay, MasterCard, and Visa) chip and PIN-based cards for accomplishment of task by banks for card present and electronic payment transactions.EMV cards are smart cards, also called chip cards, integrated circuit cards, or IC cards, which store their data on integrated circuit chips, in addition to magnetic stripes for backward compatibility.
Biometric system:
A Swedish startup ‘Quixter’ has produced a device that allows the cardholder to swipe his hand instead of using a credit card for payments. The biometric system scans the veins in the hands to identify a person and approves payments in seconds. Just like fingerprints, no two humans have the same pattern of veins in their hands; therefore committing fraud under a biometric card system is impossible. The cardholder has to enter the last four digits of his/her phone number and then hold his/her hand above the sensor. The transaction takes less than 5 seconds. According to news agencies, people need to first register their social security number and phone number. A new user then has their palm scanned thrice and receives an activation link via the Quixter website. After filling out some more information that links their biometric profile to payment methods, they’re good to go.
Withdrawal with the aid of mobile phones:
In Great Britain, money can be withdrawn from ATMs, with the aid of their mobile phones. The Royal Bank of Scotland recently introduced a new system, which facilitates their customers to withdraw cash up to GBP 100 from ATMs, using their mobile phones.
Related Posts:
