Automated Teller Machine (ATM)

I know that many of you would be using ATM or would be making Online transaction in day to day life but ask yourself how much do you know about ATM Card.

And Sorry Guys for such a long post.

Introduction

An ATM card is any payment card issued by a financial institution(Bank) that enables a customer to access an Automated Teller Machine (ATM) in order to perform transactions such as deposits, cash withdrawals, obtaining account information, etc.

ATM cards are known by a variety of names such as bank card, MAC (Money Access Card), client card, key card or cash card, among others. Most payment cards, such as debit and credit cards can also function as ATM cards, although ATM-only cards are also available.

Interbank networks allow the use of ATM cards at ATM’s of private operators and financial institutions other than those of the institution that issued the cards.

ATM cards can also be used on improvised ATMs such as "mini ATMs", merchants' card terminals that deliver ATM features without any cash drawer. These terminals can also be used as cashless scrip ATMs by cashing the receipts they issue at the merchant's point of sale.

The first ATM cards were issued in 1967 by Barclays in London.

Working

When you insert your debit or credit card into the ATM, it reads the information encoded on the magnetic strip on the back of the card. That black strip is encoded with your unique card number, expiration date and personal identification number (PIN). Your card is basically a hard copy of the access information to your account.

The ATM then asks for your PIN to verify your authorization to access account funds and information. When you have verified your PIN, the ATM communicates with your bank to access your account information. It can then display your account balance or distribute cash to you from your bank account balance.

The ATM is connected to a collection of massive interbank networks. The two largest interbank networks are Cirrus and Pulse, although there are many others. An ATM can only provide access to bank accounts that are enrolled in the interbank networks it has access to; these are usually listed on the side of the machine. These interbank networks use phone lines, internet access and central computers to distribute information among one another and facilitate financial transactions

Misuse

Due to increased illegal copies of cards with a magnetic stripe, the European Payments Council established a Card Fraud Prevention Task Force in 2003 that spawned a commitment to migrate all ATMs and POS applications to use a chip-and-PIN solution until the end of 2010. The "SEPA for Cards" has completely removed the magnetic stripe requirement from the former Maestro debit cards.

Preventions (ATM-cum-Debit Card)

1. Don't write down your PIN number anywhere...at least not on your ATM card. Memorize it. Further, don't disclose it to anyone, not even the bank officials.
2. Preferably use an ATM which is within bank premises or manned 24 hrs by a security guard.
3. Avoid using ATMs which are in isolated places, dimly lit locations or on the streets.
4. Do not use the ATM where the card reader appears to be tampered with, broken, scratched, damaged, sticky with glue, has extra wiring or loose parts around the slot, difficulty in inserting the card etc. These could be signs of skimming machine having been installed.
5. Preferably use the same ATM machine so that you are familiar with it and may notice any 'unwanted' changes.
6. If there are people around, make sure that you shield your hand while entering your PIN. No one should be able to make out what numbers you are punching in.
7. Restaurants, shopping outlets and petrol pumps are the high-risk areas where some rogue employees might swipe your card in a skimming machine when they take it way for normal billing.
8. Register yourself for SMS alert whenever your account is accessed.
9. Don't throw away the ATM transaction slips until you verify the transactions in the bank statement every month.
10. Change your PIN numbers as often as convenient once in 3 months.

Precaution as per Bank of Florida

Automated Teller Machines (ATMs) provide a fast and convenient banking alternative for accountholders. To ensure your safety when using an ATM, please follow these important safety precautions.

Before you go to an ATM:

1. Minimize time spent at the ATM by filling out all forms, such as deposit slips, beforehand and having your ATM card out and ready to use.
2. Protect your Personal Identification Number (PIN) and memorize it. Do not write your PIN on the card or carry it with you, and do not share your PIN with anyone, including family and friends.
3. Consider having someone accompany you when the ATM is used after dark.

Choosing an ATM:

1. Be alert and aware of your surroundings and use an ATM that is located in an open space with bright lights.
2. If someone appears to be loitering around the ATM, go to another location.
3. If anything looks suspicious, consider canceling the transaction and leave the area at once.
4. If the ATM looks different or appears to have any alterations or attachments to the card slot or PIN pad, do not use it. Immediately report anything suspicious to the bank that operates the ATM.

At the ATM:

1. Focus on what you are doing. Don’t use a cell phone or do anything else that diverts your attention.
2. Never allow a stranger to assist you in conducting an ATM transaction, even if you have trouble.
3. If the ATM retains your card, notify the branch as soon as possible.
4. Prevent others from seeing your PIN entry by using your body or hand to shield the ATM keypad.
5. If you are in a vehicle at a drive-up ATM, only open your window when you are ready to make a transaction. Keep your doors locked and the engine running.
6. When you are finished, put your receipt, card, and money away quickly. Count cash later in the safety of your vehicle, home, or other secure area.
7. As you return to your vehicle after your transaction, have your car keys ready and observe the area around your vehicle.
8. Go to the nearest public area where people are located if you are followed after making a transaction and call the police.
9. If someone does approach you and demands your money, do not resist. Remember everything you can about the person and call the police immediately.

Debit Card Safety Precautions

1. Debit cards provide added convenience in accessing your accounts. Please consider the aforementioned safety precautions and additional protections listed below when using a debit card.
2. Sign your card on the signature panel as soon as you receive it. Always keep the card in a safe place.
3. When selecting a PIN, do not use your birth date, telephone number, or Social Security number.
4. Never disclose your PIN to anyone. No one should ask for your PIN, including representatives from Bank of Central Florida.
5. Do not disclose information about your card in response to an unsolicited e-mail or request.
6. If traveling internationally and using your debit card, call (863) 682-7100 to have a bank representative flag your account to avoid interruption in service.
7. Look for secure transaction symbols (https:// and a closed padlock icon) when shopping online to ensure your account information is protected. Consider using a credit card instead of a debit card for online purchases, as it may take more time to resolve unauthorized transactions or disputes with debit card fraud and money can be taken directly out of your checking account.
8. Block the view of others when using a point-of-sale (POS) terminal in making debit card purchases.
9. Check the purchase amounts on the sales receipt before signing. If the amount is different than the amount you owe, let the sales clerk know. Do not sign the receipt if the amount shown is erroneous.
10. Review your bank statements or check your account history online regularly to verify if any unauthorized transactions are shown. Always keep your statements in a safe place.
11. Report lost or stolen cards or unauthorized transactions on your account to Bank immediately by contacting during business hours. After call report a lost or stolen card. Providing prompt notice will limit your potential liability. For additional tips on dealing with a lost or stolen debit card, the Federal Trade Commission provides helpful information on “Lost or Stolen Credit, ATM, and Debit Cards."
12. If we suspect fraudulent debit card use, a bank representative will call you to validate the legitimacy of your transactions. Your participation is critical to prevent potential risk and avoid restrictions on your card.
13. Destroy expired cards by cutting through the account number and signature area.

Precaution as per ICICI Bank to Avoid Skimming

1. Protect your PIN by standing close to the ATM and shielding or cover the key pad with your other hand when entering your PIN
2. If you see anything unusual, strange, suspicious, something that does not look right with the ATM or if the keypad does not feel securely attached, stop your transaction and inform the bank
3. If it appears to have anything stuck onto the card slot or key pad, do not use it. Cancel the transaction and walk away. Never try to remove suspicious devices
4. Be cautious if strangers offer to help you at an ATM, even if your card is stuck or you are having difficulties. Do not allow anyone to distract you
5. Keep your PIN a secret. Never reveal it to anyone, even to someone who claims to be calling from your bank or a police officer
6. Check that other people in the queue are at reasonable distance away from you
7. Regularly check your account balance and bank statements, and report any discrepancies to your bank immediately

Below are additional tips for staying safe when using an ATM:

1. Memorise your PIN – never write it down or store it with your card(s)
2. Have your card and envelopes ready for your transaction when you approach the ATM
3. Be aware of your surroundings and people nearby
4. Monitor your account, statements and report suspicious transactions to the bank
5. Do not take help offered by strangers or allow anyone watch you enter your PIN
6. Always press the 'Cancel' button once your transaction is over

I hope this would help u to protect your hard earn money