Automated Teller Machine - ATM

What is an 'Automated Teller Machine - ATM'

An automated teller machine (ATM) is an electronic banking outlet, which allows customers to complete basic transactions without the aid of a branch representative or teller.

There are two primary types of automated teller machines, or ATMs. The basic units allow the customer to only withdraw cash and receive a report of the account's balance. The more complex machines will accept deposits, facilitate credit card payments and report account information. To access the advanced features of the complex units, you will usually need to be a member of the bank that operates the machine.

BREAKING DOWN 'Automated Teller Machine - ATM'

ATMs are scattered throughout cities, allowing customers easier access to their accounts. Anyone with a debit or credit card will be able to access most ATMs. Using a machine operated by your bank is usually free, but accessing funds through a unit owned by a competing bank will usually incur a small fee.

RELATED TERMS
  1. Electronic Funds Transfer Act

    A federal law that protects consumers engaged in the transfer ...
  2. Activity Charge

    A fee charged to cover the servicing costs of an account. An ...
  3. Demand Deposit

    Funds held in an account from which deposited funds can be withdrawn ...
  4. Commercial Bank

    A financial institution that provides services, such as accepting ...
  5. Warm Card

    A type of ATM card that allows the bearer restricted access to ...
  6. PIN Cashing

    A type of fraud in which a stolen credit card or debit card is ...
Related Articles
  1. Managing Wealth

    Bank Teller: Job Description & Average Salary

    Learn the main responsibilities of an individual in a bank teller position, including training, education and skills required to be successful in the career.
  2. Financial Advisor

    Bank Teller: Career Path & Qualifications

    Learn more about what it takes to become a bank teller and whether the position qualifies you for promotion into higher bank positions.
  3. Personal Finance

    Don't Get Ripped Off at the ATM

    As our dependence on automated teller machines rises, so do those nasty little charges for using them. Here are some tips on bypassing fees.
  4. Investing

    5 ATM Scams That Can Break The Bank

    Don't get scorched by ATM thieves who want to burn a hole in your wallet.
  5. Managing Wealth

    Common Interview Questions for Bank Tellers

    Discover some of the most common questions asked of applicants for bank teller positions and the best answers with which applicants can respond.
  6. Investing

    Cut Your Bank Fees

    Find out how to get the bank to pay you for using their services, not the other way around.
  7. Personal Finance

    5 ATM Scams That Can Break The Bank

    Here are five common ways ATM users get ripped off.
  8. Personal Finance

    Best Checking Accounts For Couples

    Being a couple, especially if you both have jobs, can help you qualify for benefits and fee waivers that would be tougher to get on just one salary.
  9. Markets

    The Ins And Outs Of Bank Fees

    These service charges could nickel and dime you right out of your nest egg.
  10. Managing Wealth

    The Future Of Mobile Banking (JPM, BAC)

    Typically slow to react to technological change, retail banks are finally recognizing the benefits it provides to consumers as well as the cost savings it gives the firm.
RELATED FAQS
  1. What's the average salary of a bank teller?

    Read this article to find out more about average bank teller salaries, median hourly wage rates and potential future career ... Read Answer >>
  2. How ATM Fee Reimbursement Works (ALLY, EVER)

    Learn how ATM fee reimbursement works, identify some of the banks that offer it and understand the typical limitations that ... Read Answer >>
  3. How do you cancel a NetSpend card?

    Learn how to close or cancel your NetSpend account, and find out about the options, potential issues and fees associated ... Read Answer >>
  4. How do I check the balance on my prepaid credit card?

    Check your prepaid credit card balance quickly using your phone or the Internet. Keeping track of your balance is easy and ... Read Answer >>
  5. What US banks offer free checking accounts?

    Quit wasting money on monthly fees associated with your checking account and get a free checking account from reputable national ... Read Answer >>
  6. What are the advantages and disadvantages to dealing with internet-only banks?

    In recent years, large companies have set up internet-only banks as a means of diversifying into the financial sector and ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center