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51-708: Donald C. Wetzel (born January 3, 1929) is an American businessman known for holding the USA patent to the automatic teller machine . Born in New Orleans, Louisiana , he graduated from Jesuit High School (New Orleans) in 1947 and got a B.Sc. in foreign trade from Loyola University New Orleans (1951). He was also a professional in minor-league baseball for the New York Giants farm system (1948–50), and began working for IBM in his hometown (1951–55) before moving to Fort Worth, Texas as branch manager (1955) and as consultant to
102-559: A telephone line or directly on a leased line. Leased lines are preferable to plain old telephone service (POTS) lines because they require less time to establish a connection. Less-trafficked machines will usually rely on a dial-up modem on a POTS line rather than using a leased line, since a leased line may be comparatively more expensive to operate compared to a POTS line. That dilemma may be solved as high-speed Internet VPN connections become more ubiquitous. Common lower-level layer communication protocols used by ATMs to communicate back to
153-674: A bank branch's capabilities, and are thus more expensive. Off-premises machines are deployed by financial institutions where there is a simple need for cash, so they are generally cheaper single-function devices. Independent ATM deployers unaffiliated with banks install and maintain white-label ATMs . In the US, Canada and some Gulf countries , banks may have drive-thru lanes providing access to ATMs using an automobile. In recent times, countries like India and some countries in Africa are installing solar-powered ATMs in rural areas. The world's highest ATM
204-479: A company called Metior's machine (a device called Bankomat) by a mere nine days and British Westminster Bank's Smith Industries Chubb system (called Chubb MD2) by a month. The online version of the Swedish machine is listed to have been operational on 6 May 1968, while claiming to be the first online ATM in the world, ahead of similar claims by IBM and Lloyds Bank in 1971, and Oki in 1970. The collaboration of
255-489: A department head at a company called Docutel. Docutel was a subsidiary of Recognition Equipment Inc of Dallas , Texas , which was producing optical scanning equipment and had instructed Docutel to explore automated baggage handling and automated gasoline pumps. On 2 September 1969, Chemical Bank installed a prototype ATM in the U.S. at its branch in Rockville Centre, New York . The first ATMs were designed to dispense
306-519: A fixed amount of cash when a user inserted a specially coded card. A Chemical Bank advertisement boasted "On Sept. 2 our bank will open at 9:00 and never close again." Chemical's ATM, initially known as a Docuteller was designed by Donald Wetzel and his company Docutel. Chemical executives were initially hesitant about the electronic banking transition given the high cost of the early machines. Additionally, executives were concerned that customers would resist having machines handling their money. In 1995,
357-445: A global decline in the number of ATMs in use, with the average dropping to 39 per 100,000 adults from a peak of 41 per 100,000 adults in 2020. An ATM is typically made up of the following devices: Due to heavier computing demands and the falling price of personal computer –like architectures, ATMs have moved away from custom hardware architectures using microcontrollers or application-specific integrated circuits and have adopted
408-506: A later model were matched with a four-digit personal identification number (PIN). Shepherd-Barron stated: "It struck me there must be a way I could get my own money, anywhere in the world or the UK. I hit upon the idea of a chocolate bar dispenser, but replacing chocolate with cash." The Barclays–De La Rue machine (called De La Rue Automatic Cash System or DACS) beat the Swedish saving banks ' and
459-436: A more diverse range of devices to attach to their networks, some interbank networks have passed rules expanding the definition of an ATM to be a terminal that either has the vault within its footprint or utilises the vault or cash drawer within the merchant establishment, which allows for the use of a scrip cash dispenser . ATMs typically connect directly to their host or ATM Controller on either ADSL or dial-up modem over
510-621: A new ATM at Royal Bank of Scotland allowed customers to withdraw cash up to £130 without a card by inputting a six-digit code requested through their smartphones. ATMs can be placed at any location but are most often placed near or inside banks , shopping centers , airports , railway stations , metro stations , grocery stores , gas stations , restaurants , and other locations. ATMs are also found on cruise ships and on some US Navy ships, where sailors can draw out their pay. ATMs may be on- and off-premises. On-premises ATMs are typically more advanced, multi-function machines that complement
561-639: A new building on that site. The London architect William Gillbee Scott was the winner with his designs shown at the Royal Academy and published in The Builder in January 1897. They were for a main bank building and a block of offices in a similar style to the rear but only the main building was built at the time. The bank was built by Alan Fairhead and Son of Cecil Road, Enfield, and completed in December 1897. It
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#1732854531211612-466: A number of later patents reference this patent as "Prior Art Device". Devices designed by British (i.e. Chubb, De La Rue) and Swedish (i.e. Asea Meteor) manufacturers quickly spread out. For example, given its link with Barclays , Bank of Scotland deployed a DACS in 1968 under the 'Scotcash' brand. Customers were given personal code numbers to activate the machines, similar to the modern PIN. They were also supplied with £10 vouchers. These were fed into
663-600: A plastic ATM card (or some other acceptable payment card) into the ATM, with authentication being by the customer entering a personal identification number (PIN), which must match the PIN stored in the chip on the card (if the card is so equipped), or in the issuing financial institution's database. According to the ATM Industry Association (ATMIA) , as of 2015 , there were close to 3.5 million ATMs installed worldwide. However,
714-481: A security personal key using a combination of the ten numeric buttons. In March of the same year an ad with the instructions to use the Bancomat was published in the same newspaper. In West Germany , the first ATM was installed in the 50,000-people university city of Tübingen on May 27, 1968, by Kreissparkasse Tübingen. It was built by Aalen -based safe builder Ostertag AG in cooperation with AEG-Telefunken . Each of
765-620: A single-use token or voucher which was retained by the machine, while the Speytec worked with a card with a magnetic stripe at the back. They used principles including Carbon-14 and low-coercivity magnetism in order to make fraud more difficult. The idea of a PIN stored on the card was developed by a group of engineers working at Smiths Group on the Chubb MD2 in 1965 and which has been credited to James Goodfellow (patent GB1197183 filed on 2 May 1966 with Anthony Davies). The essence of this system
816-672: A small start-up called Speytec and Midland Bank developed a fourth machine which was marketed after 1969 in Europe and the US by the Burroughs Corporation . The patent for this device (GB1329964) was filed in September 1969 (and granted in 1973) by John David Edwards, Leonard Perkins, John Henry Donald, Peter Lee Chappell, Sean Benjamin Newcombe, and Malcom David Roe. Both the DACS and MD2 accepted only
867-464: A system that utilized encryption techniques to assure telephone link security while entering personal ID information that was transmitted to a remote location for verification. He founded Atalla Corporation (now Utimaco Atalla ) in 1972, and commercially launched the "Atalla Box" in 1973. The product was released as the Identikey. It was a card reader and customer identification system , providing
918-417: A terminal with plastic card and PIN capabilities. The Identikey system consisted of a card reader console, two customer PIN pads , intelligent controller and built-in electronic interface package. The device consisted of two keypads , one for the customer and one for the teller. It allowed the customer to type in a secret code, which is transformed by the device, using a microprocessor, into another code for
969-444: A variety of financial transactions, most notably cash withdrawals and balance checking, as well as transferring credit to and from mobile phones. ATMs can also be used to withdraw cash in a foreign country. If the currency being withdrawn from the ATM is different from that in which the bank account is denominated, the money will be converted at the financial institution's exchange rate . Customers are typically identified by inserting
1020-537: A vault be attached to the floor to prevent theft, though there is a record of a theft conducted by tunnelling into an ATM floor. Barclays Bank, Enfield 51°39′08″N 0°04′55″W / 51.65230°N 0.08196°W / 51.65230; -0.08196 Barclays Bank , at 20 The Town, Enfield , formerly the London and Provincial Bank , is a Grade II listed building in the London Borough of Enfield. It
1071-527: Is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions , such as cash withdrawals, deposits, funds transfers, balance inquiries or account information inquiries, at any time and without the need for direct interaction with bank staff. ATMs are known by a variety of names, including automatic teller machines (ATM) in the United States (sometimes redundantly as "ATM machine"). In Canada,
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#17328545312111122-810: Is located at the Khunjerab Pass in Pakistan . Installed at an elevation of 4,693 metres (15,397 ft) by the National Bank of Pakistan , it is designed to work in temperatures as low as -40-degree Celsius. Most ATMs are connected to interbank networks , enabling people to withdraw and deposit money from machines not belonging to the bank where they have their accounts or in the countries where their accounts are held (enabling cash withdrawals in local currency). Some examples of interbank networks include NYCE , PULSE , PLUS , Cirrus , AFFN , Interac , Interswitch, STAR , LINK , MegaLink , and BancNet . ATMs rely on
1173-516: Is of red brick in Flemish bond with stone dressings to all storeys which completely cover the ground floor front elevation. The style is Flemish Renaissance . In 1918, the London and Provincial became Barclays Bank. The interior of the bank has been much changed during its existence with a redesign by Alfred Foster in 1919 at a cost of £4,055 (equivalent to £235,379 in 2023) and other changes including
1224-682: Is within the footprint of the device itself and is where items of value are kept. Scrip cash dispensers, which print a receipt or scrip instead of cash, do not incorporate a vault. Mechanisms found inside the vault may include: ATM vaults are supplied by manufacturers in several grades. Factors influencing vault grade selection include cost, weight, regulatory requirements, ATM type, operator risk avoidance practices and internal volume requirements. Industry standard vault configurations include Underwriters Laboratories UL-291 "Business Hours" and Level 1 Safes, RAL TL-30 derivatives, and CEN EN 1143-1 - CEN III and CEN IV. ATM manufacturers recommend that
1275-503: The Atalla Box , IBM 3614, IBM 3624 and 473x series, Diebold 10xx and TABS 9000 series, NCR 1780 and earlier NCR 770 series. The first switching system to enable shared automated teller machines between banks went into production operation on 3 February 1979, in Denver, Colorado, in an effort by Colorado National Bank of Denver and Kranzley and Company of Cherry Hill, New Jersey. In 2012,
1326-566: The Smithsonian National Museum of American History recognised Docutel and Wetzel as the inventors of the networked ATM. To show confidence in Docutel, Chemical installed the first four production machines in a marketing test that proved they worked reliably, customers would use them and even pay a fee for usage. Based on this, banks around the country began to experiment with ATM installations. By 1974, Docutel had acquired 70 percent of
1377-399: The 1,000 selected users were given a double-bit key to open the safe with "Geldausgabe" written on it, a plastic identification card, and ten punched cards . One punch card functioned as a withdrawal slip for a 100 DM bill, the maximum limit for daily use was 400 DM. After looking firsthand at the experiences in Europe, in 1968 the ATM was pioneered in the U.S. by Donald Wetzel , who was
1428-579: The U.S. market; but as a result of the early 1970s worldwide recession and its reliance on a single product line, Docutel lost its independence and was forced to merge with the U.S. subsidiary of Olivetti . In 1973, Wetzel was granted U.S. Patent # 3,761,682 Archived 5 September 2017 at the Wayback Machine ; the application had been filed in October 1971. However, the U.S. patent record cites at least three previous applications from Docutel, all relevant to
1479-530: The United Kingdom, on 27 June 1967, which is recognized as the world's first ATM. This machine was inaugurated by English actor Reg Varney . This invention is credited to the engineering team led by John Shepherd-Barron of printing firm De La Rue , who was awarded an OBE in the 2005 New Year Honours . Transactions were initiated by inserting paper cheques issued by a teller or cashier, marked with carbon-14 for machine readability and security, which in
1530-401: The authorization of a financial transaction by the card issuer or other authorizing institution on a communications network. This is often performed through an ISO 8583 messaging system. Many banks charge ATM usage fees . In some cases, these fees are charged solely to users who are not customers of the bank that operates the ATM; in other cases, they apply to all users. In order to allow
1581-541: The bank include SNA over SDLC , a multidrop protocol over Async , X.25 , and TCP/IP over Ethernet . In addition to methods employed for transaction security and secrecy, all communications traffic between the ATM and the Transaction Processor may also be encrypted using methods such as SSL . There are no hard international or government-compiled numbers totaling the complete number of ATMs in use worldwide. Estimates as of 2015 developed by ATMIA placed
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1632-996: The banking industry in San Antonio (1956–1963) and Houston (1963–65). His engineering fame came while working as vice president of the Docutel Corporation of Irving, Texas which he joined in 1968. He designed the Docuteller machine (1968) that was first deployed at Chemical Bank in New York City in 1969 and was patented in 1973. Later he founded three financial systems companies, the Financial Systems & Equipment Corporation (1973), Electronic Banking Systems, Inc. (1979) and Autosig Systems, Inc. (1982) from which he retired in 1989, still living in Dallas . Automatic teller machine An automated teller machine ( ATM )
1683-477: The development of the ATM and where Wetzel does not figure, namely US Patent # 3,662,343 Archived 5 September 2017 at the Wayback Machine , U.S. Patent # 3651976 Archived 5 September 2017 at the Wayback Machine and U.S. Patent # 3,68,569 Archived 5 September 2017 at the Wayback Machine . These patents are all credited to Kenneth S. Goldstein, MR Karecki, TR Barnes, GR Chastian and John D. White. In April 1971, Busicom began to manufacture ATMs based on
1734-470: The dispensing of goods or services. This was granted UK Patent 959,713 in June 1964 and assigned to Kins Developments Limited. A Japanese device called the "Computer Loan Machine" supplied cash as a three-month loan at 5% p.a. after inserting a credit card. The device was operational in 1966. However, little is known about the device. A cash machine was put into use by Barclays Bank, Enfield , north London in
1785-614: The first commercial microprocessor , the Intel 4004 . Busicom manufactured these microprocessor-based automated teller machines for several buyers, with NCR Corporation as the main customer. Mohamed Atalla invented the first hardware security module (HSM), dubbed the "Atalla Box", a security system which encrypted PIN and ATM messages, and protected offline devices with an un-guessable PIN-generating key. In March 1972, Atalla filed U.S. patent 3,938,091 for his PIN verification system, which included an encoded card reader and described
1836-793: The hardware architecture of a personal computer, such as USB connections for peripherals, Ethernet and IP communications, and use personal computer operating systems. Business owners often lease ATMs from service providers. However, based on the economies of scale, the price of equipment has dropped to the point where many business owners are simply paying for ATMs using a credit card. New ADA voice and text-to-speech guidelines imposed in 2010, but required by March 2012 have forced many ATM owners to either upgrade non-compliant machines or dispose them if they are not upgradable, and purchase new compliant equipment. This has created an avenue for hackers and thieves to obtain ATM hardware at junkyards from improperly disposed decommissioned machines. The vault of an ATM
1887-609: The large number of ATMs, there is additional demand for machines in the Asia/Pacific area as well as in Latin America. Macau may have the highest density of ATMs at 254 ATMs per 100,000 adults. With the uptake of cashless payment solutions in the late 2010s, ATM numbers and usage started to decline. This happened first in developed countries at a time when ATM number were still increasing in Asia and Africa. As of 2021 , there had been
1938-561: The listing. To the rear is the Grade II* listed St Andrew's Church and to its west is the Enfield market square. The bank faces Hatton Walk and various retail buildings on the south side of The Town. The world's first cash machine or automatic teller machine , invented by John Shepherd-Barron , was installed on the western side of the building on 27 June 1967 and opened by the actor and Enfield resident Reg Varney , best known for his lead role in
1989-523: The loss of the original double-height banking hall that has been reduced to one storey. In the mid-twentieth century a single storey block of offices was added at the rear. The bank was listed Grade II on the National Heritage List for England in March 2023, in part for its group value with the adjacent Grade II listed Old Vestry Office . The twentieth-century office extension is not included in
2040-660: The machine, and the corresponding amount debited from the customer's account. A Chubb-made ATM appeared in Sydney in 1969. This was the first ATM installed in Australia. The machine only dispensed $ 25 at a time and the bank card itself would be mailed to the user after the bank had processed the withdrawal. Asea Metior's Bancomat was the first ATM installed in Spain on 9 January 1969, in central Madrid by Banesto . This device dispensed 1,000 peseta bills (1 to 5 max). Each user had to introduce
2091-404: The number of ATMs in use at 3 million units, or approximately 1 ATM per 3,000 people in the world. To simplify the analysis of ATM usage around the world, financial institutions generally divide the world into seven regions, based on the penetration rates, usage statistics, and features deployed. Four regions (USA, Canada, Europe, and Japan) have high numbers of ATMs per million people. Despite
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2142-524: The rear but those are not listed. In 1967, the world's first automatic teller machine (ATM) was installed on the west side of the building and in 2017, a gold-coloured ATM and plaque were installed to mark the spot. The first bank to open a branch in Enfield was the London and Provincial Bank in 1875. In 1894, they bought the Greyhound Inn and terraced houses on the eastern side of Enfield Market Square, and in 1896 launched an architectural competition for
2193-470: The television sitcom On the Buses (1969-1973). The maximum permitted cash withdrawal at the time was £10 (equivalent to £229 in 2023), and customers had to purchase a paper voucher in advance which they inserted into the machine, along with a personal identification number (PIN). The Enfield branch of Barclays was chosen for the installation because it was likely to easily obtain planning permission for
2244-491: The teller. During a transaction , the customer's account number was read by the card reader . This process replaced manual entry and avoided possible key stroke errors. It allowed users to replace traditional customer verification methods such as signature verification and test questions with a secure PIN system. The success of the "Atalla Box" led to the wide adoption of hardware security modules in ATMs. Its PIN verification process
2295-505: The term automated banking machine (ABM) is also used, although ATM is also very commonly used in Canada, with many Canadian organizations using ATM rather than ABM. In British English, the terms cashpoint , cash machine and hole in the wall are also used. ATMs that are not operated by a financial institution are known as " white-label " ATMs. Using an ATM, customers can access their bank deposit or credit accounts in order to make
2346-560: The use of ATMs is gradually declining with the increase in cashless payment systems. The idea of out-of-hours cash distribution was first put into practice in Japan, the United Kingdom and Sweden. In 1960, Armenian-American inventor Luther Simjian invented an automated deposit machine (accepting coins, cash and cheques) although it did not have cash dispensing features. His US patent was first filed on 30 June 1960 and granted on 26 February 1963. The roll-out of this machine, called Bankograph,
2397-451: Was a true ATM, similar in function to today's machines and named Cashpoint by Lloyds Bank. Cashpoint is still a registered trademark of Lloyds Banking Group in the UK but is often used as a generic trademark to refer to ATMs of all UK banks. All were online and issued a variable amount which was immediately deducted from the account. A small number of 2984s were supplied to a U.S. bank. A couple of well known historical models of ATMs include
2448-466: Was delayed by a couple of years, due in part to Simjian's Reflectone Electronics Inc. being acquired by Universal Match Corporation. An experimental Bankograph was installed in New York City in 1961 by the City Bank of New York , but removed after six months due to the lack of customer acceptance. In 1962 Adrian Ashfield invented the idea of a card system to securely identify a user and control and monitor
2499-405: Was designed by William Gillbee Scott in a Flemish Renaissance style and completed in 1897. London and Provincial were taken over by Barclays Bank in 1918. The interior of the building has been greatly altered since 1897. It received an interior redesign in 1919 and the original double-height banking hall has been reduced to one storey. In the mid-twentieth century a block of offices was built at
2550-410: Was similar to the later IBM 3624 . Atalla's HSM products protect 250 million card transactions every day as of 2013, and secure the majority of the world's ATM transactions as of 2014. The IBM 2984 was a modern ATM and came into use at Lloyds Bank, High Street, Brentwood, Essex, the UK in December 1972. The IBM 2984 was designed at the request of Lloyds Bank . The 2984 Cash Issuing Terminal
2601-493: Was that it enabled the verification of the customer with the debited account without human intervention. This patent is also the earliest instance of a complete "currency dispenser system" in the patent record. This patent was filed on 5 March 1968 in the US (US 3543904) and granted on 1 December 1970. It had a profound influence on the industry as a whole. Not only did future entrants into the cash dispenser market such as NCR Corporation and IBM licence Goodfellow's PIN system, but
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