In our all-digital economy, only the computer knows

ATM Machine:  funnelinc.com

ATMs Relay Messages

Vital Stats:

  • ATMs in the U.S.: 396,000
  • Avg. daily cash dispensed per machine: $4,100
  • Avg. transactions per month: 1,807 (off-site ATMs); 3,651 (in-branch ATMs)

What they do: When you ask for cash at the machine, an encrypted message containing your account information is sent over secure lines (such as copper wire or even satellite relays) to the core data center of your bank. Assuming you have enough money in your account for the withdrawal, the data center will authorize the transaction. Although you'll usually see an updated account balance on your receipt, it's not necessarily changed at the core level yet. Usually the ATMs in a given region will place this data in a file in what are called memo posts, sent to the core data center at least once a day. (Update schedules differ from bank to bank.) This is why that 20 bucks you just withdrew may not be reflected online right away: The core data server hasn't been updated.

Security: ATMs are hardened against physical attack—the cash is held in armored drums you couldn't bust open with an ax—but the most important security feature is your PIN. To open that secure channel to your account, the ATM reads the account number on your card's magnetic strip, finds that account in the core data center, and matches the number you entered with the PIN on file.

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5 Comments

Careful on how you state that

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