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HOW IT WORKS: Automated Teller Machine

About 1 pages (338 words)

The Washington Post, March 25th, 1996

Introduced in the 1960s, automated teller machines have become one of the most commonly used forms of computer in the United States. More than 100,000 in operation. They began as simple "cash dispensers" linked to a single bank, then gradually received new capabilities and were linked by communications networks so that customers of one bank can use the ATMs of another. 1. A customer inserts a plastic card that has a magnetic strip containing a customer's number and other information. The machine "reads" the strip and prompts the customer to enter a password. To verify that the password is corr...

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