The modern cash machine was created during the early 1970's. Until
then , a few banks had cash dispensers which worked like drinks
machines and gave out packets of money. Today there are 16,000 cash
machines in Britain, 2,600 of which have been installed in the last year
and in the United States there are 80,000. Britain has the fourth highest
number of machines in the world.
The height of the modern cash machines is designed to be
comfortable for most people. The keyboard is positioned so that it is
easy to use for both right and left-handed people. The machines enable
customers to carry out various banking transactions. To be able to do
this, every customer needs to have a special plastic card issued by the
bank.
There is a magnetic strip on the back of the plastic card. This is made
up of three tracks, similar to three strips of the cassette tape. The first
track contains your name, the second has bank information (such as
your account number), and the third track has more details about you. A
card reader, like a tape recorder, reads the magnetic strip when the card
is put into the machine.
The information is sent to the bank's central computer, often
hundreds of miles away. While this is taking place, the personal
identification number (PIN) is typed in by the customer using the
keyboard. The information is checked by the computer and if it is
correct, a message is sent back to the machine allowing you to use it.
To withdraw money, the amount needed is typed in. This information is
sent to the computer holding details of the customer's account. After the
bank account has been checked to see if there is enough money, the
cash is given out. About £100,000 is held inside each cash machine.
