5 Advantages and Disadvantages of ATM
Automated teller machines (ATMs) enable customers to complete basic banking transactions without contacting a teller or branch representative. At most ATMs, you can access cash with your credit card or debit card. Customers can withdraw currency notes of specified values from ATMs 24 hours a day.
Advantages and Disadvantages of ATMs: Using ATMs is convenient, as consumers can use them to deposit funds, withdraw cash, pay bills, and transfer money between checking and savings accounts. Banks and ATM operators often charge withdrawal fees if a cash withdrawal is made from an ATM or where the account is located. If the account is held by a bank that operates ATMs directly, you may be able to avoid some or all of these fees.
The automatic teller machine (ATM) is also named an automated bank machine (ABM) in other parts of the world. John Shepherd-Barron invented the automatic teller machine in 1960. Here are the Advantages and Disadvantages of ATM
Advantages Of ATM
Hassle-Free Customer experience
Customers can do transactions conveniently and instantly access hard cash without visiting the bank. Nowadays ATMs are installed at all important places like Market, Railway stations, hospitals, Tourist spots, airports etc. So Customers can visit any place without carrying cash with them. Also, It ensures privacy for customers.
Access 24×7
ATMs are open 24 hours a day and 7 days a week. Like bank branches, ATMs don’t have any holidays or work hours. They are operational 365 days a year. Customers Can Withdraw money anytime day or night when they need it.
Saves time and Bank pressure
Customers Can access hard cash anywhere so its reduce pressure on bank branches and their employees. The process of withdrawing money is fast in ATMs as customers don’t have to wait in long lines or fill up various forms for withdrawals. The maintenance cost of ATMs is less as no bank staff is involved in the transaction
Access anytime anywhere
With ATM cards customers can access money in any part of their country or worldwide. Travellers don’t need to carry cash or exchange cash in different countries. Customers can travel all over the world with ATM cards like Visa, and Mastercard carries out transactions in almost every ATM.
ATM offers lots of services
Apart from withdrawing cash ATMs provides a lot more other services to their customers like
- Cash Deposit
- Pay Insurance Premium
- Apply For Personal Loan
- Transfer Cash
- Pay your Bills
- Change ATM pin
- Check Balance
- Cardless Transaction
Disadvantages of ATM
Charges For Transaction
Banks allow their customers a number of free transactions every month after that banks deduct routine charges as per the standard rates. Apart from that Customers are also required to pay a maintenance fee every year for providing them ATM facility.
Limitation On Cash Withdrawal
Banks limit the number of cash customers can withdraw using ATMs at a time. There is a maximum withdrawal amount per transaction, as well as a limited number of free withdrawals that customers can do. In most cards, the maximum withdrawal limit is set to 25000.
Chances of fraud
There are many cases of ATM fraud happening all over the world. If not used carefully, customers can fall into various traps.
What is a centralised and decentralised store
Lack of Customer Awareness
There is a lack of customer awareness by banks about ATMs. And still, have lots of misconceptions about using ATMs mostly among elderly people. Most people still visit branches and fill up slips to withdraw money for fear of losing money when using ATMs.
Not Accessible in rural areas
There are still many remote locations and rural areas around the world where advanced banking systems have not been reached. Most places don’t have ATMs and if they do, people don’t know how to use them.
Advantages and Disadvantages of ATM chart
