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Below are the steps as to how it works:

  1. Customer visits the ATM and inserts his card into the machine
  2. ATM reads the magnetic stripe to identify the user
  3. ATM prompts the user to enter his identification pin number
  4. If the user enters an incorrect pin, the transaction is cancelled and the card is returned
  5. If the user enters the correct pin, the machine shows him a menu of operations like withdrawal, deposit, balance inquiry etc.
  6. User chooses his option - Ex: Withdraw cash
  7. Machine connects to the bank database to check if the user has sufficient balance in his account to successfully complete the withdrawal transaction
  8. If so, the machine dispenses cash that the user asked for
  9. Machine updates users account with the withdrawal and updates the balance accordingly
  10. Machine returns the card and a receipt advise on the transaction just performed
  11. User takes his card and leaves the ATM
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Wiki User

14y ago

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