ICT and Banks Banks use mainframe computers to maintain customer accounts. They store a record of each customer’s withdrawals and deposits. Each bank mainframe is used to operate a network of ATMs.

ATM Typically, an ATM can be used for: Withdraw Cash; Check an account balance; Order/print a statement Transfer & payment ATM = Automated Teller Machines

ATM What are the parts of an ATM? Magnetic Stripe Reader Screen to display menu options Keyboard Printer There will also be a slot somewhere on the machine to dispense the cash.

ATM Using an ATM: Insert a debit or credit card into the magnetic stripe reader. It will read an account number from the stripe on the back. ATM will then ask customer to use their PIN (Personal Identification Number) for security. Customer asked to select an option from a menu on the screen. To withdraw cash, the customer selects the relevant options and the request is sent to the bank’s mainframe where it is approved and updated.

ATM Advantages of using an ATM: Banks can keep their operating costs down as fewer employees are needed to work at the branches. Customers have 24 hour access to their accounts seven days a week. There’s no need to carry large amounts of cash around as the large number of ATMs means that it is readily available. Next time your parent/guardian is going to the ‘Cash Machine’ ask if you can go along and watch the process!

Types of Cards There are 2 types of card you will need to be familiar with: A Debit Card; A Credit Card;

Types of Cards A Debit Card: This card allows the user to transfer money from their bank account to the vendor’s bank account. The money for the purchase of the item is taken from the customer’s bank account after 1 or 2 days. The customer MUST have money in the account to cover the cost of the item.

Types of Cards A Credit Card: This card allows the customer to purchase an item even if they do not have enough funds in their account. The customer is then sent a bill each month totalling the cost of the items bought in that period. The bill will contain an amount added for ‘interest.’ The ‘interest rate’ will be determined by the Credit Card provider.

Chip and PIN What is Chip and PIN? Found on debit and credit cards. Customer places chip into a card reader and is asked to input their PIN (Personal Identity Number). The PIN is the same one that is used in the ATM. It is a security measure to stop people forging signatures and using a card fraudulently.