Definition: A computerized station that allows account holders the ability, 24 hours a day, to withdraw cash from their accounts, deposit cash into their accounts, view their account balances, and transfer money between accounts if they have more than one.
To use the machine, account holders must insert their plastic, wallet-sized *ATM card* that has their bank account number magnetically encoded on it, and then enter a unique PIN (personal identification number) they chose when they received the card.
Example: Chase has over 18,000 ATMs nationwide.
Investeach explains: The number of ATM machines a bank has in your area can be an important determinant in choosing a bank because if you have to use another bank’s ATM, you will probably be charged several dollars in fees. These fees can quickly add up.
Virtual banks, ones without retail locations (ie, branches) or ATMs, are in an interesting situation because they appear to leave their customers without the ability to get cash quickly. The solution of many of these banks is to let you use any ATM you want and to refund the fees you are charged for using them! If you think about it, these costs have to pale in comparison to the costs of having branches or ATMs all over the place. Stock brokerages that provide banking services may also make offer.
Riddle me this:
1. What are the banking functions an account holder can perform using an ATM?
2. What times of day can they perform these functions?
3. How does the ATM know it is actually the account holder who is making a transaction?
4. What is the benefit of choosing a bank with many ATMs in the area where you live?
5. How do virtual banks overcome the disadvantage of not having their own branches and ATMs?