How Withdrawing Money From The Atm Works, Processes Involved And Results

An automated teller machine (ATM) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, transfer funds, or obtaining account information, at any time and without the need for direct interaction with bank staff.


How does the system really process the withdrawal commands you input into the atm machine.

Do you really think there's no background processing that happens when you are requesting for money from an atm stand. I bet there is. All this happens within some seconds to minutes.. You won't know what's going on but the bank servers are communicating in other to process your withdrawal commands.

This is how experts says the processing takes place

Let's take for example, you're using Diamond bank Visa card to withdraw @ Access bank atm.

You are initiating the transaction to pay money with the atm machine.

Your ATM is connected to a mega server which can control many ATMS and the server senses the instructions.

The message passes to the main server of the bank which has installed ATM.

It in turn the main server passes the message to VISA , the service provider.

From VISA, the message reaches the server of card issuing Bank.

The server identifies the correctness of the transaction.

The account is debited with the amount requested.

Again the message is communicated in the reverse order.

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Finally the machine gets final nod to pay the amount to the cardholder.

All this happens within a fraction of a second and this transaction is one among billions of transactions taking place at every second throughout the world.

Technology is really changing everyday.. New discoveries are made every hour of the day.

The change is unique, specific and continuous.. I wonder how the world will be in decades from now.. More techy I think.. It will be like