ATMs, or Automated Teller Machines, are everywhere—outside banks, gas stations, grocery stores, and airports. They’ve been around since the 1960s and have become an essential part of banking, allowing you to access Cash and manage your money without stepping into a bank. Whether you need to withdraw Cash, check your account balance, or even deposit a check, an ATM is there to help. Let’s examine how ATMs work and what you should know about using them.

How ATMs Work

An ATM is a specialized computer that connects directly to your bank account. You can use it to perform basic banking tasks without interacting with a teller. Most ATMs are available 24/7, so you don’t have to rush to the bank during business hours. They make it convenient to withdraw money, check your balance, deposit checks or Cash, transfer funds, and more.

To use an ATM, all you need is your ATM card (debit or credit), a Personal Identification Number (PIN), and a bit of patience to follow the on-screen instructions. Insert your card, enter your PIN, and select the type of transaction you want to perform. It’s quick and straightforward.

A Brief History of ATMs

ATMs have been around for more than half a century. The first one was installed in London by Barclays Bank in 1967. Two years later, in 1969, the U.S. got its first ATM, thanks to Chemical Bank in New York. ATMs spread quickly worldwide; today, you can find them in even the smallest towns and cities. By 2022, there were more than 450,000 ATMs in the U.S. alone.

Types of ATMs

ATMs come in two main types: basic machines and more advanced ones.

• Essential ATMs: These only let you withdraw Cash and check your balance. They can be found in places like gas stations or convenience stores.
• Advanced ATMs: These machines do a lot more. You can deposit Cash or checks, transfer money between accounts, make payments, and get a printed receipt with transaction details. You usually find these at bank branches.

Some newer ATMs even let you buy or sell cryptocurrency, like Bitcoin, adding a modern twist to traditional banking.

Common ATM Transactions

ATMs offer several convenient services, and here are the most common ones you’re likely to use:

1. Withdrawing Cash

The most common use of ATMs. Just insert your card and choose the withdrawal option, and the machine will dispense the amount you select (up to your bank’s limit). Keep in mind that daily limits may vary by bank.

2. Depositing Cash or Checks

You can use an ATM to deposit funds into your account. Some machines will ask you to insert Cash directly, while others might require a check deposit envelope.

3. Transferring Funds

If you have multiple accounts at the same bank, ATMs often allow you to transfer money between them. It is convenient to move money from savings to checking on the go.

4. Balance Inquiries

You can quickly check how much money you have in your account, which can help avoid overdraft fees or ensure you’re sticking to a budget.

5. Recent Transactions

Some ATMs will also let you review recent activity in your account, though you usually won’t get access to your entire statement.

ATM Fees: What to Watch Out For

ATM fees can be a nasty surprise, but they’re easy to avoid if you know what to look for. Using an ATM outside your bank’s network will likely mean fees from both your bank and the ATM’s operator. On average, these fees total around $4.73 per transaction. Over time, that adds up.

To avoid these fees, always use ATMs within your bank’s network. Some banks will also reimburse fees if you’re in an area without an affiliated ATM, so it’s worth checking with your bank to see if they offer this perk.

ATM Withdrawal Limits

Most banks set daily limits on ATM withdrawals to prevent fraud and manage cash flow. Your bank and account type determine the limits, which usually range from $300-$1,500 daily.

If you need more Cash than your limit allows, you can usually call your bank to request a temporary increase.

Using ATMs Abroad

ATMs can be a lifesaver when traveling abroad, offering you easy access to local currency. They’re typically cheaper than currency exchange services, though you may still encounter fees. Foreign ATMs may charge a fee for the transaction, and your home bank may add a foreign transaction fee on top. The good news is that even with these fees, the exchange rate at ATMs is often more favorable than what you’d get at a currency exchange booth.

One tip: always choose to be charged in the local currency rather than your home currency when withdrawing Cash abroad. It usually gives you a better exchange rate.

Safety Tips for Using ATMs

While ATMs are convenient, staying safe is essential, especially if using one in a public area. Here are a few safety tips:

• Choose Well-Lit Locations: If you’re withdrawing money at night, pick an ATM in a well-lit, busy area. Avoid isolated or dark locations.
• Shield Your PIN: Cover the keypad with your hand when entering your PIN to stop others from seeing it.
• Don’t Count Cash at the ATM: Put it away immediately once you have your money. Count it later when you’re in a safe place, like your car or home.

The Future of ATMs

Even though ATMs are incredibly convenient, the rise of cashless payments and mobile banking is starting to decrease their use. Many people now prefer using apps for their transactions, but ATMs are still essential, especially for those who need Cash regularly. In the future, there might be more specialized ATMs, such as Bitcoin ATMs, but cash dispensers will likely be around for years.

FAQs

How much can I withdraw from an ATM?

Withdrawal limits vary by bank, but most range between $300 and $1,500 per day. Check with your bank or request a temporary limit increase.

How do I avoid ATM fees?

Stick to ATMs in your bank’s network. Some banks also offer reimbursement for out-of-network fees, so check with your bank to see if they provide this service.

Can I use an ATM to deposit checks?

Yes, many ATMs let you deposit checks. Some require an envelope for the deposit, while others allow you to insert the check directly.

Are ATMs available 24/7?

Depending on the location, most ATMs are available around the clock. Those inside bank branches or stores may only be accessible during business hours.

What should I do if an ATM takes my card?

If an ATM keeps your card, contact your bank immediately. Depending on the situation, they’ll help you retrieve it or issue a new card.

ATMs are a convenient way to manage your money on the go. Whether you’re withdrawing Cash, depositing a check, or checking your balance, they save you a trip to the bank. Just remember to avoid fees and stay safe while using them.