Cash Machine (ATM)
Often referred to as 'cash dispensers' or 'hole in the wall machines', they are a cross between a cash till and a computer which enable users to access their bank accounts and carry out transactions such as withdrawing cash. These machines offer access to cash for, in most cases, 24 hours a day, 7 days a week.
The first cash machine in the United Kingdom was introduced by Barclays Bank in 1967 outside its Enfield branch. ATMs can be found in supermarkets, railway stations, motorway service areas and convenience stores.
Customers can usually withdraw cash free of charge using a debit card linked to their current account. But there will be charges (of perhaps 1.5%) if you use an ATM operated by an institution with which your bank does not have a reciprocal arrangement.
Whichever ATM machine you use, if you draw cash using a credit card you will pay a charge (typically 1.5%). Security is taken care of by individual users using a Personal Identification Number (PIN) that is known only to them. But there have been odd security question-marks over ATMs with some users claiming 'phantom withdrawals'.
The main ATM network in the UK is the LINK organisation which includes some 50 institutions, including all the major banks and building societies in the country.
Typically, the machines can be used to :
- withdraw cash - typically up to £ 300, but more for 'gold card' users.
- get an account balance
- order statements & cheque book
- Some ATM's permit you to 'pay money in'.
The proliferation of ATM machines has provided greater convenience to customers, dispensing, according to APACS, £156 billion in 2.4 billion transactions in the UK in 2004. Many people now never visit their local branch or any bank for that matter. Instead, they manage their accounts by post or use a telephone banking service or online banking service .