Just What is a Cash Machine?

Cash Machines, cash terminals or ATMs can be found all over the world, what's more, is that the demand for these devices is high and growing, and everyone, from people in the busiest cities to residents of the quietest, sleepiest villages, needs access to their cash at any time. But while it's easy to see why cash machines have become so popular over the decades, because they allow people to have access to their own money, withdraw as much money as they would like and also make their transaction as quickly as possible, not many people know how they work.

The answer is behind the familiar screen and the keypad that we know and recognise is a highly intelligent and accurate piece of software and machinery that was created in order to help people withdraw their money. While cash machines have changed over time to cope with demand and the upgrading of the technology, every ATM uses the same software in order to work properly and efficiently. This technology is known as EMV, which is taken from the card schemes Europay, Mastercard and Visa, the companies that helped develop this technology. EMV is a type of software based on card chip technology, as in 'Chip and Pin' the payment system brought into make card payments more secure. Simply put, EMV has been put in place to validate the card, authorise the withdrawal, and most important protect the customer while they access their money.

It does this by exchanging dozens of pieces of information between the chip on the debit or credit card, the actual card terminal and the bank. This means that the terminal itself has to perform a number of complex processes in order to complete the transaction.

EMV is globally recognised as 'must have' for credit and debit card providers as it helps to protect the card issuer, the bank, and most importantly the customer from fraudulent transactions and to ensure that no one attempts to remove money from the customer's account without their prior knowledge and permission.

Because taking cash out from a cash line or ATM can take up so little of our time, it can be very easy to overlook just what exactly happens inside this machine while we type in our PIN or Personal Identification Number and select the options before waiting for our cash. But remember that cash machines were created in order to make our lives a lot easier, and stop us from having to go in the bank and queue. So remember that ATMs are a luxury for everybody and treat them with the respect and care that they deserve, so know that you know a little about how they work, and have been introduced to the technology and software that they use, such as EMV Kernel, you can have a new found appreciation for just what it is that cash machines do.

About the Author

Harvey is passionate about finding the best ATM information possible.