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Institute of Technology & Science

Greater Noida
PGDM Batch 2007-2009
Submitted By :

(09054)

PRADEEP TIWARI

Project On: Use of IT in ATM

Index:
1. Introduction Of ATM 2. Use Of IT IN ATM

E-Commerce Online Transaction Processing

Automated Teller Machine ( ATM ) 3. History 4. Location 5. Financial network 6. Global use 7. Hardware 8. Software 9. Speech Technology for ATM 10. 11. 12. 13. 14. 15. Scope Product Perspective Cryptographic Modules Alternative Usage Of ATM ATM Security ATM Safety Measure

INTRODUCTION
Now a days, most of us are surrounded by powerful computer systems with graphics oriented input and output. These computers include the entire spectrum of PCs, through professional work station up to super computers. As a performance of computers has increased, so too has the demand for communication between all system for exchanging data, or between central servers and the associated host computer system. The replacement of copper with fiber and the advancement sin digital communication and encoding are at the heart of several developments that will change the communication infrastructure. The former developments have provided us with huge amount of transmission bandwidth. While the latter has made the transmission of all information including voice and video through a packet switched network possible. With continuously work sharing over large distances, including international communication, the systems must be interconnected via wide aria network with increasing demand for higher bit rates. For the first time, a single communications technology meets LAN and WAN requirements and handles a wide

variety of current and emerging applications. ATM is the first technology to provide a common format for bursts of high speed data and the ebb and flow of the typical voice phone call. Seamless ATM network provide desktop to-desktop multimedia networking over single technology, high band width, low latency network, removing the boundary between LAN and WAN.

USE OF INFORMATION TECHNOLOGY IN ATM Electronic commerce :

Electronic commerce, known as e-commerce. Consists of the buying and selling of product or services over electronic systems such as the internet and other computer network. The amount of trade conducted electronically has grown dramatically since the wide introduction of the internet. A wide variety of commerce is conducted in this way, including thing such as electronic fund transfer, supply chain management, emarketing, online marketing, online transaction processing.

Online transaction processing :

Online transaction processing, or OLTP, refers to a class of systems that facilitate and manage transaction-oriented applications, typically for data entry and retrieval transaction processing. OLTP has also been used to refer to processing in which the system responds immediately to user

requests. An automatic teller machine (ATM) for a bank is an example of a commercial transaction processing application.

Automated teller machine (ATM)

An automated teller machine (ATM) is a computerized telecommunications device that provides the customers of a financial institution with access to financial transaction in a public space without the need for a human clerk or bank teller. On most modern ATMs the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a chip, that contains a unique card number and some security information, such as an expiration date or CVC (CVV). Security is provided by the customer entering a personal identification number (PIN). Using an ATM, customers can access their bank accounts in order to make cash withdrawals (or credit card cash advances) and check their account balances.

History
The ATM was invented by scot john shepherd-barron. The worlds first ATM was installed in a branch of Barclays, Middlesex, in 1967.

Inspiration had struck Mr. Shepherd-Barron, now 82, while he was in the bath.

Location
ATMs are placed not only near or inside the premises of banks, but also in locations such as shopping centers/malls, airports, grocery stores, petrol/gas stations, restaurants, or any place large numbers of people may gather. These represent two types of ATM installations: on and off premise. On premise ATMs are typically more advanced, multi-function machines that complement an actual bank branch's capabilities and thus more expensive. Off premise machines are deployed by financial institutions and also ISOs (or Independent Sales Organizations) where there is usually just a straight need for cash, so they typically are the cheaper mono-function devices.

Financial networks
Most ATMs are connected to interbank networks, enabling people to withdraw and deposit money from machines not belonging to the bank where they have their account or in the country where their accounts are

held (enabling cash withdrawals in local currency). Some examples of interbank networks include PLUS, Cirrus, Interac and LINK. ATMs rely on authorization of a financial transaction by the card issuer or other authorizing institution via the communications network. This is often performed through an ISO 8583 messaging system. Many banks charge ATM usage fees. In some cases, these fees are charged solely to users who are not customers of the bank where the ATM is installed; in other cases, they apply to all users. Many people oppose these fees because ATMs are actually less costly for banks than withdrawals from human tellers. ATMs typically connect directly to their ATM Transaction Processor via either a dial-up modem over a telephone line or directly via a leased line. Leased lines are preferable to POTS lines because they require less time to establish a connection. Leased lines may be comparatively expensive to operate versus a POTS line, meaning less-trafficked machines will usually rely on a dial-up modem. That dilemma may be solved as high-speed Internet VPN connections become more ubiquitous. Common lower-level layer communication protocols used by ATMs to communicate back to the Bank include SNA over SDLC, TC500 over Async, X.25, and TCP/IP over Ethernet. In addition to methods employed for transaction security and secrecy, all communications traffic between the ATM and the Transaction Processor may also be encrypted via methods such as SSL.[7]

Global use
An ATM in the Tokyo subway There are no hard international or government-compiled numbers totaling the complete number of ATMs in use worldwide. Estimates developed by

ATMIA place the number of ATMs in use at over 1.5 million as of August 2006. For the purpose of analyzing ATM usage around the world, financial institutions generally divide the world into seven regions, due to the penetration rates, usage statistics, and features deployed. Four regions (USA, Canada, Europe, and Japan) have high numbers of ATMs per million people and generally slowing growth rates. Despite the large number of ATMs, there is additional demand for machines in the Asia/Pacific area as well as in Latin America. ATMs have yet to reach high numbers in the Near East/Africa. The world's most northerly installed ATM is located at Longyearbyen, Svalbard, Norway The world's most southerly installed ATM is located at McMurdo Station, Antarctica. While ATMs are ubiquitous on modern cruise ships, ATMs can also be found on some US Navy ships.

Hardware
An ATM is typically made up of the following devices :

CPU (to control the user interface and transactions devices)

Magnetic and/or chip card reader(to identify the customer) PIN pad (similar in layout to a Touch tone or calculator keypad) Secure crytoprocessor, generally within a secure enclosure. Display (used by the customer for performing the transaction)

Function key buttons (usually close to the display) or a touch screen (used to select the various aspect of the transaction)

 Record printer (to provide the customer with a record of their transaction) Vault (to store the part of the machinery requiring restricted access) Housing (for aesthetics and to attach signage to)

Recently, due to heavier computing demands and the falling price of computer- like architectures, ATMs have moved away from custom hardware architectures using micro controllers and or applicationspecific integrated circuits to adopting a hardware architecture that is very similar to a personal computer. Many ATMs are now able to use operating system such as Microsoft Windows and Linux.

Software :
With the migration to commodity PC hardware, standard commercial off-the shelf operating systems and programming environments can be used inside of ATMs. Typical platforms used in ATM development include RMX, OS/2, and Microsoft operating systems (such as Windows NT, Windows 2000, Windows XP, or Window XP Embedded) Sun Microsystemss Java may also be used in these environments.

Linux is also finding some reception in the ATM marketplace. An example of this is Banrisul, the largest bank in the south of Brazil,

which has replaced the MS-DOS operating systems in its ATM with Linux.

Common application layer transaction protocols, such as Diebold 911 or 912, IBM, and NCR NDC or NDC+ provide emulation of older generations of hardware on newer platform with incremental extensions made over time to address new capabilities. Most major ATM manufacturers provide software packages that implement these protocols. Newer protocols such as IFX have yet to find wide acceptance by transaction processors. With the move to a more standardized software base, financial institutions have been increasingly interested in the ability to pick and choose the application programs that drive their equipment. WOSA/XFS, now know as CEN XFS (or simply XFS) provides a common API for accessing and manipulating the various devices of an ATM.

J/XFS is a java implementation of the CEN XFS API.

While the perceived benefit of XFS is similar to the javas Write once, run anywhere mantra, often different ATM hardware vendors have differences in interpretation means that ATM applications typically use in a middleware to even out the differences between various platforms.

Speech technology for the ATM :

Despite the success and widespread use of ATM, A significant proportion of bank customers can not or will not use them, or experience difficulties in their interactions. Speech technology has been suggested as a means by which non-users might be encouraged to use ATMs while simultaneously improving usability for all. The potential advantage of speech interfaces include hand- free and eyefree use for physically and visually impaired users and improved ease and speed of use through increased Naturalness of the interaction. The study investigated user attitudes to the concept of a speech- based ATM, via large-scale survey and a series of focus group. Objective performance was also considered in user trials with a prototype speech-driven ATM. The idea of using speech for ATM transaction led to a number of concerns. Privacy (the concern over ones personal financial details being overheard) and security (the fear of potential attackers hearing the user withdraw cash) were the major reason given. The user trials confirmed that possible solutions, such as the adoption of a hood over the ATM or use of a telephone handset as the speech input /output device, were ineffective. Group of impaired users particularly visually-impaired subjects, were more positive about the concept of speech, citing various difficulties with current visual-manual interaction. Most non-users, however, would not be encouraged to use ATMs with the addition of speech. The paper discusses these and other issues relating to the likely success of using speech for ATM applications.

Alternative uses :
Although ATMs were originally developed as just cash dispensers, they have evolved to include many other bank-related functions. In some countries, especially those which benefit from a fully integrated crossbank ATM network (e.g.: multibank in Portugal), ATM include many functions which are not directly related to the management of ones own bank account such as :

Deposit currency recognition, acceptance, and recycling

Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, taxes, etc.) Printing bank statements Updating passbooks

Loading monetary value into pre-paid cards (cell phones, tolls, multipurpose stored value cards, etc.)

Ticket purchases (train, concert, etc.)

Purchasing postal stamps.

Lottery ticket purchase. Games and promotional features Donations to charities Purchase shopping mall gift certificates

 Cheque processing module

In Australia, Belgium, South Africa, Finland, Ireland, India and the United Kingdom, pre-paid cell phones can be recharged through some ATMs.

ATM can also act as an advertising channel for companies to advertise their own product or third party products and services. Manufactures have demonstrated and have deployed several different technologies on ATMs that have not yet reached worldwide acceptance, such as :

Biometrics, where authorization of the transaction is based on the scanning of a customers fingerprint, iris, face, ets. Biometrics on ATM can be found in Asia. Cheque/cash acceptance, where the ATM accepts and recognize cheques and/or currency without using envelopes expected to grow in importance in the US through legislation.

Bar code scanning.

On demand printing of Items of value (such as movie tickets, Travellers cheques, etc.).

Dispensing additional media (such as phone cards). Co-ordination of ATM with mobile phones.

Customers-specific advertising. Integration with non-banking equipment.

ATM Security
Secure ATM transaction provide a foundation for the ATM industry. To maximize an ATMs effectiveness and profitability, card users must feel safe and the ATM,s vault must be secure from theft.

ATM Safety Measure Pratect

your self and your money , by resolving to be extremely alert whenever performing a transaction at an ATM and, by remembering the following easy tips :

Your ATM card and your pin (personal identification number) are the only key to your account. Without thease, a criminal cannot access your account in any way, so protect your pin and make sure your ATM card is always in a safe place.

Never keep a record of your pin on your card, in your wallet, in your handbag, in the cubby-hole of your car, on any piece of paper- in fact in any place where anyone else can access it. PIN no supplied by SOUTH AFRICAN and international banks are very easy to memorise and it is in your very best interests to commit your PIN to memory rather than having it written down somewhere.

Your PIN must NEVER be given to anyone !!! and that includes your husband, your wife, member of your family,your best friend, your boss etc.

It is not necessary for any bank official to know your PIN. Bank officials do not require your PIN to assist you with anythig.

When approaching an ATM be especially wary of any suspicious characters that may be loitering in the area. Please avoid using the ATM if these characters are around. For the sake of your personal safety rather go to another ATM centre where you feel much safer. Do not perform a transaction at an ATM that is close to other ATM that seem to be out of order.

Do not allow your self to be distracted in any way when transacting at an ATM. Do not accept help or advice from any one at the ATM, especially from people you do not know or people claiming to be bank officials but cannot provide conclusive proof of their identities.if you must have assistance ask some one in the bank whom you know for certain is working for the bank.

If people persist in attempting to assist you at the ATM and you do not feel safe or comfortable- press the cancel button, retrieve your card and leave imediately. Important: ensure that the card in your possession isindeed, your card ! In the event that it is not,contact your bank immediately and cancel your card. Plan your day so that attempts to withdraw your funds or to perform any other ATM transaction will be excuted within normal working hours. Using ATM that are in remote , lonely locations and after normal working hours is especially high risk behavior!!