The History of the ATM

Feb 02, 10 The History of the ATM
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by Stephen Daniels

The story of the ATM dates back to New York City in’39 when inventor Luther George Simjian got a bank publicly to try out the machine.  The try out failed due to lack of customer interest at that time.  In’60 a bank in New York City had a cash machine predecessor (the Bankograph) installed that would accept utility bill payments, thereby freeing tellers for other work.

The next automated cash dispenser development took place in’64.  An electronic ATM was set out in North London (UK) but it was completely different in operations than current equipment.  This machine would dispense ten pound sterling notes of cash in exchange for a teller purchased voucher.

The modern machine style was a creation of British engineer James Goodfellow.  In’65 he patented the cash machines that were the forerunners of what we commonly use today.  There was a type of ATM introduced in’68 that always ate the prepaid plastic card and users would have to buy a replacement from a teller.

In’69, Donald C. Wetzel for Docutel developed the first machines utilizing the cards with magnetic strips.  Since Docutel was the first company to get a patent for this type of machine, the Smithsonian Museum gives them credit for being the inventors.  The public was still wary of accepting and trusting money machines.  The machine proved to be very expensive to operate.

Docutel led the way to the modern ATM machine in’71 when they produced a full-function ATM called Total Teller.  By’73, these machines were capable of issuing cash in variable amounts.  By’74, the online networking component was added which led to ATMs as we know them now.

Today automated cash machines are more common than drinking fountains and are so prevalent they are very easy to locate.  They are found worldwide, even as distant as Antarctica.  The ability to use a small plastic debit or credit card to withdraw cash as needed from these machines is just so easy.  Some banks use ATM stations for speed and convenience, replacing regular human tellers.  The popularity is not surprising considering the convenience.  Consumers no longer are concerned about carrying cash, a stack of credit cards, checks or other financial instruments.  ATM machines can be adjusted for ticket selling, concert ticket sales and gift certificates.

ATMs are so common that it is almost hard to imagine what businesses and the public did before their invention.  Prior to the availability of ATM machines, it was necessary to make a trip to the bank during regular business hours for a cash withdrawal.  Another alternative was to carry personal checks around and request cash back at the grocery store or other locations that might allow that type
of transaction.

There is a growing ATM machine business opportunity for those who don’t yet have a machine in their store or business location.  Modern automated teller machines can access many different interbank networks. Some banks and retail outlets make money by charging a usage fee when the ATM is used.

Make Money Like the Banks – Own an ATM. ATMone is one of the fastest growing providers of ATM solutions in the United States.  They have partnered with Hyosung, Triton and Tranax, the leading designers and manufacturers of ATM machines, to provide next generation ATM solutions that offer quality, reliability, and SEO 2.0 Services.

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