Use of Automated Telling machine is an everyday practice. Millions of accounts holders have ATM usage on daily basis. Through ATM machines by simple insertion of card, people are comfortable to withdraw cash, transfer funds, check accounts balance and pay bills etc.It has made easier the cash management more sophisticatedly as compared to past. Loss or theft of cash has minimized to a considerable extent.
Banks also enjoys benefits when customers automatically withdraw the cash through automated machine. They become cost effective in terms of time, less interruption of walk in customers, low transaction costs and pay roll cost as well. Use of ATM has made convenient service to their customers by Bank.
How banks cost the customers by allowing use of ATM for customers?
Bank charges fee on every service it offers to its customers. ATM fee is combination of two types of Bank charges.The Surcharge and the Transaction fee. Surcharge fee might be imposed by ATM owner i.e the seller organization facilitating the bank and its customer with use of Automatic machine and security of data. The transaction fee is a fee charged by card issuer (financial institution, Bank) to the customer for getting transaction anywhere of their network of ATM machines.
International experience indicates that in countries like UK, Germany as well as France, bank consumers have access to any ATMs in country. There is also a move, internationally, to regulate fee structure by regulator from public policy angle. The only fee is charged if cash is withdrawn from white label ATM machine or ATM machine installed by Non-Banking institutions.A best facility to consumer is that a customer would be able to access all ATM installed in country free of cost with fair cooperative initiative through banks.
There must be an idea behind running the ATM.
Why Banks chooses to introduce ATM?
Banks aim towards ATM was for marketing as well as operational reason. Marketing reason was to inspire customer for giving them convenience of cash withdrawal, transfer of cash and all related services so enhancing marketability of their product thus inspiring customer to go for more deposit accounts. With respect to operations, intention was to reduce teller staff at cash till and also reduction of bank branches and lower paper work.Operational efficiency was brought through cutting administration and pay roll cost.However, with respect to customer who will blame the respective bank eventually, there are many risks attached with the use of atm.
Personal safety Risk
Personal safety is a risk among ATMs in an empty parking lot, behind bank buildings or poorly lighted places. There is always risk someone would be lurking close by to rob you of precious money when you finished.
Pin Code Secrecy Risks
There is also the risk that more clever thieves would swipe PIN code that risk rises with poorly maintained or unfamiliar ATMs. Customer security agencies advise this criminals attach mirrors to ATM cards to capture PIN numbers or tamper by machines on the other hand to get cash or info. You would also be charged for using ATMs card not connected to bank or those in foreign states.
With the rise in technology, thieves have learnt to do fraud through automated equipment. They get the illegal skimming equipment installed unnoticed and this resulted in illegitimate withdrawals with fake ATM cards and stolen information would made across border.
ATM cards are being replaced with ones bearing an embedded microchip for greater security by many banks at international level, and this process should be completed in 2015. But as ever, your attentiveness as well as alertness is best weapons not in favor of thieves with technology to deceive.