How your ATM Machine Works

The ATM machine has been around since the 1980’s. They have become a normal staple of life. Have you ever wondered how an ATM machine works?

From the customer’s perspective – The customer inserts their card into the ATM machine and enters a pin# assigned to them by their bank, and with the banks approval money is dispensed from the ATM machine.

From the banking perspective – An ATM card is inserted into the ATM machine that has encoded data on the card, then the customer enters a pin # which is encrypted prior to leaving the ATM machine; this starts the transaction process. The customer will enter the type of transaction, amount, which account to withdrawal funds from. An encrypted signal is then sent to the switch or processor and relayed to the appropriate networks, and relayed again to the customer’s bank via another processor. Once communication has been sent from the ATM machine, several checks are made for authentication purposes between the ATM machine and the customer’s bank before any transaction can be completed. Once all checks have been made the ATM dispenses the cash.

ATM machine owner’s perspective – Setting up an ATM machine for a business owner requires the following:

  • Valid Checking or Savings account #
  • Merchant application
  • ACH Form
  • Voided Check
  • ATM Processing Agreement
  • Copy of the business License
  • Copy of the owner’s Driver’s License
  • W-9 IRS Form

After the paperwork is completed; National ATM Systems will generate a Terminal ID for the ATM machine and link all necessary bank accounts to the ATM. Next, National ATM Systems will arrange a time to install a new ATM or reprogram an existing ATM machine in you establishment. The technicians will program, bolt down, clean, repair any necessary items, and train you on proper operation and procedures for using your ATM machine. Our technicians will stay and train until you are comfortable with you ATM. We will follow-up in about a week to see if you have any questions.

National ATM Systems has streamlined this process to make this an enjoyable event. Feel free to call with any question you may have, before, during and after the sale.