Task One Automated Teller Machines

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Task One Automated Teller Machines

1. See diagram over page for Input and output devices

This kind of interface is an interactive interface with buttons. I

think this would be improved considerably and the ways that I think

will be improved by more security on the machines. I think they will

have devices like retina scans, voice activation and thumbprints. At

the moment the only security is PINS and cards but they can be stolen

and I think they will improve the security more.

2. The process for a customer obtaining cash is called transaction

processing in real time.

This kind of processing is called transaction processing. If the cash

withdrawal is required, the customer enters the amount they want from

the machine. This is then checked against the balance of the account

and if funds are available of the account, the machine dispenses

money. Also at the same the amount from the account is subtracted from

the balance on the customer's record on the bank computer. When it's

finished the card releases back the card to the customer.

[IMAGE]Other services are available are withdrawal of cash, ordering

of statements, requests for new chequebooks and obtaining the balance

of the account.

Advantages

Disadvantages

To the Bank

Employs fewer people

High level of security needed

It is cheaper than paying staff

Hackers could break into the machines

Less need to build banks and money could be used elsewhere

Employees loose their jobs.

To the customer

It is fast.

Credit cards could be stolen

It can be accessed anytime

The magnetic strips can be damaged by the ATM

They can get it anywhere

The card has to be replaced from time to time

3. Bank cards, credit and debit cards

Diagram front and back

PIN stands for Personal Identification Number, it acts like a

password, and the user enters it to the ATM keypad to verify that they

are the account holder. The PIN helps to reduce fraud.

The information stored on the magnetic strip is account numbers, bank

sort code, system number, cheque digit

Task two - Cheque clearing

There are three sets of numbers printed along the bottom of the cheque

using magnetic ink and machines can automatically read these numbers.

MICR stands for Magnetic Ink Character Recognition, it works by

inputting special ink onto cheques and the ink then is magnetised. The

limits are that very few characters could be recognised but it can be

read quite fast. The special ink then is recognised by using a process

called MICR. It's used on cheques because it has high security and if

the special has been tampered on, the computer can still read the data

on the special magnetised ink.

The cheque clearing process is called Transaction Processing; it

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