How many of these amazing facts did you know about automated bank teller machines?
1. Believe it or not, the first cash dispensing machine was invented by Luther George Simjian way back in 1939. The mechanical dispenser was installed on a trial basis in New York City at the City Bank of New York. Unfortunately, it was removed after six months due to lack of customer acceptance.
2. Simjian later lamented that, “The only people using the machines were a small number of prostitutes and gamblers who didn’t want to deal with tellers face to face.”
3. Lucky for Simjian, he had a more successful invention: a training simulator that helped aviators identify different types of aircraft and determine their distance and speed. During World War II, the US Navy bought more than 2000 of them. The number of ATMs sold during that same period: 0.
4. The first modern electronic ATM was installed in 1967 by Barclays Bank in North London, United Kingdom. Although, instead of cash, the ATM dispensed vouchers.
5. The first free standing electronic ATM was installed in 1969 by Chemical Bank at its branch in Rockville Centre, New York. This device was the first machine to use a magnetic strip on plastic cards.
6. ATMs didn’t begin to proliferate until 1973, when 2000 of the machines were sold and distributed across the United States. Not everybody was happy; bankers at the time were concerned about the machine’s price tag: $162,000 in 2016 dollars. Today, an ATM can be bought for under $3000.
7. It may sound crazy, but US federal law mandates that all drive-up ATM keypads must have Braille on them. I explained the surprising reason why in this brief article.
8. TGIF: The most popular day for ATM use is Friday. On a related note, it should probably be no surprise that night clubs with ATMs end up keeping 80% of the money dispensed from their cash machines.
9. The United States currently has 420,000 ATMs — that’s more than any other country — but that may not last long because Americans are using them with decreasing frequency. From 2010 to 2015, the number of ATM transactions in the US dropped 15%.
10. Canada currently has more ATMs per capita than any other country, followed by Belgium, Australia and Russia.
11. The first ATM in China wasn’t installed until 1987.
12. From an engineering perspective, ATMs are really not technically complex; the main components consist of a computer, control panel, printer, and a special safe to hold the money. For a quick peek at the inner workings of an ATM, you can check out this cool one-minute video.
13. True Crime Stories: The first fake ATM was installed in 1993 at a shopping mall in Manchester, Connecticut. By modifying a retired ATM, a criminal gang known as The Bucklands Boys exploited information from cards inserted into the bogus machine by unwitting customers. The gang ended up with more than $100,000 before finally being caught.
14. True Crime Stories II: The average American ATM fee in 2008 was $1.97. By 2015, that number had climbed 46% to $2.88. Minneapolis has the highest ATM fees: $3.19
15. True Crime Stories III: In 1996 a man named Andrew Stone was convicted in the UK of stealing the equivalent of more than one-million dollars by pointing high-def video cameras at ATMs from a considerable distance. After getting all the necessary information from the videotapes, he produced clone cards that allowed him to withdraw money at a rate of more than $10,000 per hour.
16. You say tomato: Automated teller machines are known by many different names. For example: ATM (US); automated banking machine, bank machine, or money machine (Australia, Canada); cashpoint, or cash machine (UK, New Zealand); bancomat (Europe).
17. No matter what you call them, there are now 3 million cash machines all over the world. Heck, there’s even an ATM at McMurdo station in Antarctica. Talk about cold hard cash.
18. ATMs in high-traffic locations can hold as much as $100,000. Presumably, that ATM in Antarctica is a smaller model.
Photo Credit: Mike Mozart
hey this really helped me with my project so thx a ton you guys who put it on!
The first ATM was in North London? I’m rather surprised it stayed there over night.
Nice article Len! 🙂
Hi, don’t know who told you that atm’s are “money machines” in Canada but in my Canada, they are ATMs and always have been ;-D I’ve never heard the term “money machine” until I read your article your article. Although my Dad might have been less suspicious of them if they’d been called that (maybe not, the only time he tried to use one, he was out of town and it sucked up his card).
An Alert is being passed around on the internet, saying that if you are being forced by a robber to take money out of your account per ATM, if you put your pin number in backward, the police will be alerted to the fact that there is a hold up in progress. Any truth to this?
No, margaret; that is patently false.
Hi – Please correct me if i am wrong. The maximum currency notes an ATM can dispense, is not more than 40 – i have tried this in several countries – Any specific reason pl ? Just curious. Thanks
That is true for Bank of America ATMs, Naren. I’m not sure if that applies everywhere else.
Don’t forget about all the gold-dispensing ATMs a la Gold-To-Go.
How else are you going to get your 24 karat fix when you’re jonesing for the yellow metal.
Well said, Jack. Well said. LOL
Here is another fun fact. Calling it an “ATM Machine” is redundant.
Yes, I know that, Dog. But it is part of the American vernacular. It is what it is.
I have only ever used an ATM machine twice in my life and so it makes to me that the number of Americans using them is decreasing. I mean, we now pay online and hardly ever use cash. However, do you know whether or not there are countries that have an increasing frequency when it comes to using an ATM?
Antarctica??? Are there any stores down there? And my next thought is who stocks it with cash. Oh and maintenance… the scientists working there certainly wouldn’t be doing that would they?
Just discovered your website and I love it. Thanks for a ton of info and ideas to think about.
Cheers from Khali-fornia.
Welcome aboard, Lindy!
Although I can’t verify it, I thought I read an article once that said there actually is a small store there that carries essentials for the people staying there.