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.

ATMTypically, an ATM can be used for:

• Withdraw Cash;

• Check an account balance;

• Order/print a statement

• Transfer & payment• ATM = Automated Teller Machines

ATMWhat 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.

ATMUsing 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.

ATMAdvantages 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 CardsThere are 2 types of card you will need to be familiar with:

• A Debit Card;

• A Credit Card;

Types of CardsA 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 CardsA 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 PINWhat 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.