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When an ATM or automated teller machine works with a network of banks for approving financial transaction, this is called ATM processing. It is basically a multi step action that only takes a few seconds. This machine involves phone lines and bank account records so that machine will come to know whether the card holder has the fund to remove money from an account. However, processing does not just mean removing money but it is used for checking bank balance as well as depositing funds.
The ATM machine starts processing whenever a withdrawal starts at a personal ATM machine and a card holder inserts a bank card and then inputs card’s secret code. This code is the most important as it gives permission to start processing of the card. The machine hooked up to a personal phone line and dials a specific toll free number that will give access to ATM alliance. After that, the machine offers a terminal identification number so that the network will easily come to know the location of the machine.
During the time of ATM processing, the bank is contacted. Banks are having a special line like the internet which runs through the phone system and allows ATMs to access for selecting account information. When the card and its corresponding secret code are given, the bank will then check that specific account for inspecting funds.
The bank reviews the card holder’s account to make it sure that there is enough money that cover the requested withdrawal from ATM machine that includes ATM fees. If the account is clear, the bank sends a message back to the teller machine during the stage of
ATM processing. This message then authorizes the machine to dispense money to the card holder. The process normally takes a few minutes, usually a matter of seconds. However, before the advent of internet, when online technology was still crude, processing used to take much more time but now it is nearly instantaneous.