Automated Teller Machine

Definition

• An interactive terminal that allows customers with valid accounts from either a banking or other financial institution to conduct various transactions including money withdrawals, deposits, bill payments, and transfers. Customers require a magnetically encoded card and P.I.N. (personal identification number) to use the terminal and may be subject to a surcharge. These terminals are interconnected to allow customers access to their accounts from anywhere in the world.

Relevant Locations
Canada

Notes
See also Automated Banking Machine (ABM).

Synonyms
programmed, electronic fund transfer, automated banking machine, computerized, instant teller, banking machine

Acronyms
ATM

Alternate Spellings
ABM

Related Terms and Acronyms

• ATM Access Fee — Definition,
  • Fee charged in addition to the individual account fees for an account holder to gain access to the ATM system. Can be monthly, weekly, or annual fee. See also "Automated Teller Machine."
• ATM Alliance — Definition,
  • An alliance between banks and/or credit unions that is designed to avoid or minimize surcharges for non-bank customers at ATM machines. Customers from one bank that belongs to the alliance can use surcharge-free ATMs at all alliance banks.
• ATM Card Fee — Definition,
  • This is not a debit card fee. It can be an annual or monthly fee charged on top of individual account fees to obtain an ATM card. The fee may also be charged per card or per account. For example, if an account is held jointly, the bank may charge for the second person to hold a card or it may charge one fee for all the cards on an account.
• ATM Surcharge — Definition,
  • A fee charged to someone using a bank-owned ATM because he or she does not hold an account with that bank. It is a good idea to review what your bank charges you to use another bank's ATM system to avoid paying additional surcharges to your bank.
• Cash Advance Fee — Definition,
  • A fee charged by the bank for using credit cards to withdraw money generally from an ATM or banking machine. This fee can be a flat fee per transaction or a percentage of the amount being advanced. For example, the fee may be set as: "2% / $10." This means the cash advance fee will be the greater of 2% of the cash advance amount or $10. Banks often limit the fee to a certain dollar amount.
• Debit — Definition,
  • Another name for withdrawal of funds from your account.
• Debit Card (DC) — Acronym, Important,
  • A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number. Others require a customer's signature. A PIN-based or direct debit card removes a purchase price from a customer's chequing account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase price from a customer's bank account in two or three days.
• Electronic Funds Transfer (EFT) — Acronym, Important,
  • The transfer of money between accounts by consumer electronic systems such as automated teller machines (ATMs), and electronic payment of bills.
  ➥ Also known as e-Transfer.
• Express Account — Definition,
  • A low-fee or no-free chequing account, limited to ATM, telephone, and online transactions. Express account customers are charged fees when using bank teller services.
• Interac — Definition,
  • Canada's largest shared network of ATMs. It allows cardholders to access their accounts from any ATM on the network regardless of which financial institution owns the machine.
• Interac Direct Payment (IDP) — Acronym,
  • A method of paying for goods and services electronically with the funds taken immediately and directly from your bank account and transferred directly into the merchant's account. You use your banking card to do this.
• Online Debit Card — Definition,
  • A method of payment in the form of a card that immediately deducts funds from a person's bank account when used. The card may have a VISA or MasterCard logo on it, or just the name of the bank that issued the card, similar to an ATM card.
• Per Item Charge — Definition,
  • A fee charged to account holders who exceed the allowable number of free transactions for their accounts. Or, the balance in an account does not meet the average monthly balance required to waive the fee.
• Personal Identification Number (PIN) — Acronym, Important,
  • A unique, confidential number or pass code, usually consisting of four to six digits, entered by a customer when using an Automated Teller Machine (ATM) or Interac Direct Payment, that gives the customer access to his or her account.
• Point of Sale (POS) — Acronym,
  • A location where a sales transaction takes place.
  • An electronic payment system for retail goods and services, through the use of credit cards or debit cards that directly access and deduct funds from a customer's chequing account. Also known as POS.
• Retail Banking — Definition,
  • Banking services offered to individual customers such as savings accounts, personal loans, cheque cashing, and RRSPs.
• Smart Card — Definition,
  • A card with an embedded computer chip which stores more information, performs more functions and is more secure than a credit card or debit card.