Activation

• An automated teller machine (ATM) remains in passive stand-by mode until someone inserts their ATM card. The a magnetic strip on the back of the card includes the bank's routing number, the user's bank account and their password. Once the card is entered, the machine reads the information on the magnetic strip and prompts the user to enter their password or "PIN" (personal identification number). If the PIN entered matches the PIN stored on the card, the user then gains access to the ATM's other functions.
  
  

Communication

• Using the bank's routing number, the ATM connects to the main computer of the bank that issued the card via telephone line. Once connected, the ATM allows the user the option of receiving money, depositing money or checking their balance (some ATMs do more, but these are the three basic functions of all ATMs). If, for example, the user wants to withdraw money, the request for the amount is sent to the bank that checks the amount against the amount in the account. If the amount requested is the same as or less than the amount in the bank, the withdrawal is approved, and the bank deducts the amount from the account. If the amount requested is more, the withdrawal is denied.
  
  

Dispensing

• Once the ATM receives approval, it dispenses the specified amount of money through a slot in the machine. The money is held in a sealed container with a spring-loaded bottom to maintain pressure. Rubber wheels in contact with the top bill(s) roll, causing the money to be dispensed into a holding area until the correct amount is reached. Once the correct amount is counted out, the bills exit via the external slot to the user. The ATM then returns the card, prints a receipt and returns to standby mode.