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Impact of the ATM

Positive and Negative Impact of ATM on Society

Machine that permits banking transactions using a remote computer controlled terminal is termed as ATM (Automated Teller Machine). With the advent of ATM long waiting at the banks to complete a single transaction has come to an end. Here is an overview of the positive and negative impact ATM machines have on the society.

Positive Impact of ATM Machines

  • Availability of cash 24x7 even in remote locations

Using ATM machines people can withdraw money from their bank accounts any time irrespective of the banking hours. Availability of these machines at multiple places like airports, bus stations and other public areas is making money available even at remote locations. Money can also be withdrawn from any location in the world at the cost of certain fee. This feasibility to obtain cash at any locations reduces the risk of carrying huge amounts of money while travelling.

  • Instant access to money

Money becomes available immediately after inserting the card and giving the access code without the hassle of filling withdrawal forms and waiting in long queues.

  • Carryout other banking transactions effortlessly

Apart from providing the requested cash, an ATM machine offers other services like depositing cash, giving details of existing balance, change the access code, transfer money between accounts and also make certain bill payments. 

  • Increased cash flow

According to a market study, easy availability of money through bank ATM’s is encouraging users to spend more money compared to those who do not use ATM card. This in turn is serving in increased cash flow and more business.

Negative Impact of ATM Machines

  • Increased incidence of fraud

Use of ATM machines is encouraging a variety of frauds like

  • Use of fake card readers known as skimmers to provide numbers and secret codes for burglars.
  • Identifying the access pins using spy cameras.
  • Illicit use of lost ATM cards.
  • Inappropriate listing of withdrawals in the monthly statements.
  • Rise in robberies at the site of ATM machines

In the past few years there has been an increased incidence of burglaries and murders near the ATM machines just to grab the withdrawn money.

  • Risk of penalty charges

Few bank ATM machines do not give details of the existing balance after withdrawing the money. This in turn may pose the risk of overdrawing the account in future transactions resulting in unwanted penalty charges.

  • Inadequate funds during holiday season

ATM machines often remain busy during the holiday season increasing the chances for inadequate cash. Cash may not be available even if the machine gets damaged after the banking hours.

  • Card getting stuck in the ATM

Sometimes breakdown of the machine can cause the card to remain the machine itself. In such cases, the machine provides a contact number for further assistance. As a result the customer has to wait until the card is recovered from the machine by the bank authorities. If this happens over a weekend then the customer remains helpless for a couple of days.

Users can avoid most of the negative effects of ATM cards by using the card wisely and cautiously.

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