Automated teller machines (ATMs) are ubiquitous in today's world, but that wasn't always the case. In fact, the ATM is a relatively new invention, and its popularization is also only a few decades old. Find out more about this useful machine inside.
Considerations when using an ATM
If you've never used an ATM before, there can be a few things you really should pay close attention to when using one.
ATM fees
Many ATMs charge some kind of fee for its use, especially if you're not using your bank's ATM. These fees can range pretty widely, but they are generally disclosed on the screen before you agree to use the machine.
Withdrawal limits
In an effort to limit fraud, most banks will impose limits on how much money can be removed from an ATM, especially if you're out of their network. You'll want to check with your bank to see what this limit is, especially if you'll be traveling.
Card skimmers
Often, when debit and credit card numbers are stolen, it's from right under your nose through the use of credit card skimmers. These devices are installed at inconspicuous places where people are in a hurry, like gas stations and ATMs. To help minimize your risk of becoming a victim of a card skimmer, choose your ATMs wisely, opting for those located at or inside your bank or at least in very well-lit, high-traffic areas where it would be difficult for someone malicious to install a skimmer without being noticed. If your ATM and card allow tap-to-pay, that's the ideal way to eliminate the risk of card skimming.
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The rise of ATMs: a brief history
The first ATMs were installed in the 1970s, but they weren't really massively adopted until much later. The earliest machines weren't like today's machines, but once ATMs allowed users to access them using a bank card, they became very simple to use, and adoption accelerated through the early 1990s, although they still weren't necessarily in every city and town.
Through the mid-1990s and into the early 2000s, though, there was an explosion in the popularity of ATMs, and they were installed virtually everywhere. People used them frequently, creating a new income source for banks since they often charge fees for access.
Since the rise of the smartphone and online banking, ATM installations have slowed down quite a bit, but they remain located in nearly every nook and cranny in every city in America.
Although banking customers can do a lot of the same transactions on their phones, a smartphone still can't interact in a significant way with cash. Until that's possible or cash ceases to be used, they're likely to remain important tools in the banking industry.
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