The History of Automated Teller Machines

by Stephen Daniels

The story of the ATM dates back to New York City in'39 when inventor Luther George Simjian got a bank to publicly try out the machine. The try out failed due to lack of customer interest at that time. In'60 a bank in New York City had a cash machine predecessor (the Bankograph) installed that would accept utility bill payments, thereby freeing tellers for other work.

The next automated cash dispenser development occurred in'64. An electronic ATM was set out in North London (UK) but it was very different in the way it worked than modern equipment. This machine would dispense ten pound sterling in cash in exchange for a voucher purchased from a teller.

The modern machine style was a creation of British engineer James Goodfellow. In'65 he patented the cash machines that were the forerunners of what we commonly use today. There was a type of ATM introduced in'68 that always ate the prepaid plastic card and users would have to buy a replacement from a teller.

In'69, the first machines utilizing the cards with magnetic strips was developed by Donald C. Wetzel for Docutel. Since Docutel was the first company to get a patent for this type of machine, the Smithsonian Museum gives them credit for being the inventors. The public was still wary of accepting and trusting money machines. The machine proved to be very expensive to operate.

Docutel led the way to the modern ATM machine in'71 when they produced a full-function ATM called Total Teller. By'73, these machines were capable of issuing cash in variable amounts. By'74 the online networking component was added which led to ATMs as we know them now.

Today automated cash machines are more common than drinking fountains and are so numerous they are very easy to locate. They are found worldwide, even as distant as Antarctica. The ability to use a small plastic debit or credit card to withdraw cash as needed from these machines is just so easy. Many banks use ATM stations for speed and convenience, replacing human tellers. The popularity is not surprising considering the convenience. Consumers no longer need to worry about carrying cash, multiple credit cards, checks or other financial instruments. ATM machines can be adjusted for ticket selling, concert ticket sales and gift certificates.

What did businesses and the public do before the invention of the ATM machine business? Before the availability of ATM machines everywhere it was necessary to make a trip to the bank during normal banking hours for a cash withdrawal. Another alternative was to carry personal checks around and overwrite the amount at the grocery store or other locations that might allow that type of transaction.

There is a growing ATM machine business opportunity for those willing to bring a machine into their store or business location. Modern automated teller machines can access many different interbank networks. Most banks and retail outlets make money by charging a usage fee when the ATM is used.

Make Money Like the Banks - Own an ATM ATMone is one of the most rapidly growing providers of ATM solutions in the United States. They have partnered with Hyosung, Triton and Tranax, the leading designers and manufacturers of ATM machines, to provide next generation ATM solutions that offer quality, reliability, and security. SEO 2.0 Services

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