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10 Advantages Of Atm: Disadvantages of Automated Teller Machine

This post is contains the advantages of atm and also disadvantages of atm or automated teller machine.

Atm is the most common method of cash withdrawal right in this modern day banking and technology. Atm have really saved banks from overcrowding in their banking hall in the name of cash withdrawal. With atm card, you can withdraw sum amount of money from your account any day and any given time even during non working hours.


The first ATM, or automatic teller machine, was invented and patented in 1939 by Luther Simjian. This model was an unsuccessful prototype, but it led the way to the first modern ATM, created by James Goodfellow in 1966. Because the ability to connect to the bank via computer was not yet available, access to these machines was only given to a select few bank customers. The first ATM to use a card with a magnetic strip was patented in 1977. Even though the machines existed this early, it was not until the end of the 1980s that ATMs became commonplace in modern banking.

ATM has advantages and disadvantages and this is what i would like those that make use of the automated teller machine to know. First let’s take a look at the advantages of atm below.

Advantages of Atm

1. Withdrawing money at any given time as it is 24hrs available. This is the major advantages of atm over other cash withdrawal methods

2. The second advantages of atm is checking how much money is remaining in the account without going into the bank.

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3. ATM provides banking services to its customers round the clock, 24 hours a day, 7 days a week and 365 days a year.

4. Access to bank from any part of the world: Essential banking services like deposits, withdrawals transfer of funds, etc can be accessed by customers from any part of the world.

5. Expansion of Services to any corner of the world: Of the Banks can expand their services to any corner of the world by providing electronic access to its customers.

6. Through the ATM card you can quickly get the mini statement giving the details of recent transactions carried out in your bank account. Not only that, you can print this statement too.

7. Another huge advantages of atm is the Transfer of funds between accounts within the same Bank. If you are holding the ATM card then most of the banks allow you to transfer the funds from one account to another account on a real time basis. Some banks also let you transfer funds from your accounts to any third party provided the account is with the same bank.

8. Pay your Utility bills
Under this useful feature provided by most of the banks, you can make payment for utility bills.

9. Enjoy favorable exchange rates when ATMs dispense foreign currency and your bank debits your account in U.S. dollars.

10. For shopping Purpose: Now a day’s almost every shopping mall, restaurant and other organizations are accepting debit or credit card payments.

Disadvantages of Atm

Advantages of atm

1. If problem with credit card you cannot withdraw your money.

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2. Problem of atm dispense error where you will not receive cash but your account will be debited.

3. Limitation of cash withdrawals: Again there is a limitation of cash withdrawals from ATM. For example, many banks do not permit withdrawal of more than 25,000 at a time.

4. Cash deposit facility is not safe: Similarly cash deposit facility is restricted and not safe as dropping of envelope and ATM is not advisable.

5. Possibility of misusing ATM card: ATM card, if misplaced, lost or stolen, may be misused. There are number of such reported incidences now a day.

The above are the advantages and disadvantages of atm, but if you have more to add to this please would appreciate thanks.


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