Understanding Cash Counting Machines

by | Oct 10, 2012 | Computer And Software

The creation of cash counting machines like ATM’s have really changed the way that people bank. With the exception of creating accounts, there really aren’t very many reasons why anyone needs to walk into a bank. In addition for withdrawing cash, the machines can also be used to deposit paychecks. Even though people were a little suspicious of ATM machines when banks initially started using them, most people now rely heavily on the machines for their banking needs.

The thing that many people lose track of is that despite seeming fairly simple, cash counting machines are actually quite complex pieces of equipment.

The easiest way to understand the ATM is that despite the bulky appearance, it’s really a computer. They don’t work with the same operating systems found in the computers most people are accustomed to, and they have fewer functions, but the basic make-up is the same.
When a person feeds their debit card or credit card into the ATM, the cash counting machine uses the information stored in the card’s magnetic strip to get the name of the person and the bank they use. The machine than makes a phone call to that bank’s computer and the two start talking. A second later the machine has all the information it needs about the customer’s bank balance to know whether or not they can get the cash they requested.

Interestingly enough, the infrastructure that the various cash counting machines you use during the course of a year use standard computer networks. To prevent anyone other than yourself from learning about your bank accounts, your information has been set up with an elaborate algorithm that is so complex, even the government won’t be able to crack it. You will be the only person who has any idea about what the ATM is discussing with your bank’s computer.

Although the ATM machine will be connected directly into the computer network of the bank that sponsors it, the ATM doesn’t necessarily mean that the bank owns it. The technology used to design the ATM is quite elaborate, making the machines quite expensive. Most banks have found that the most economical way to provide their customers with access to the ATM is by renting the ATM. Most banks work out a deal where the bank gets part of the service fee, and the company that owns the ATM gets another part of the service fee. Not only does the deal save the bank from the expense of having to purchase a new machine every few years, they also benefit from security and cash deposit services. Businesses such as gas stations, convenience stores, and even bars have found that renting an ATM machine can be an excellent way to increase the number of cash transactions they handle every single day.

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