Advantages and disadvantages of ATM

ATM stands for automated teller machines, it is an electro-mechanical machine that consists of automated banking platforms that allow the client to perform a smooth transaction without the assistance of a branch representative or teller. A debit card or credit cardholder should be able to withdraw cash at most ATMs. ATM is beneficial in allowing clients to conduct fast self-service transactions such as cash withdrawals, deposits, bill payments, and account to account transfers. So here this article gives the advantages and disadvantages of ATM to better understand this topic.

Pros or Advantages of ATM:

  1. The most important benefit of ATMs is beneficial for travelers.
  2. It provides 24 hours services without any staff and reduces the workload on bank staff.
  3. Quick and prompt service is possible with fewer human errors.
  4. Withdraw cash at any time or in urgent without the help of a bank.
  5. It ensures privacy to the customers.
  6. ATM machine offers financial inclusion.
  7. It also provides a receipt for details of withdrawal of money and balance in the account.
  8. Maintenance cost is less as no bank staff is involved in the transaction.
  9. Access to hard cash anywhere at any time.
  10. The withdrawal of rupees faster than a bank, no need of standing long lines.
  11. ATM machine serves an important function in times of crisis.
  12. Last, ATM machine offers a wide range of services.

Cons or Disadvantages of ATM:

  1. One of the disadvantages of ATMs is the Limitation of the withdrawal of money.
  2. Secondly, the initial cost of hardware, software, and installation site is very high.
  3. The personal touch of customers employees relation is missing.
  4. Due to leakage of PIN, fraud can take place easily.
  5. Most importantly, If an ATM card is lost, with no withdrawal of rupees, there is the possibility of misusing and hack the ATM card.
  6. If dispense error in ATM machine, not received rupees but the account will be debited.
  7. It cannot provide services in a rural region in our country whereas banks are available in the villages.
  8. While using the ATM, the customers do not have proper knowledge of its operation so feel hesitant to use it.
  9. Lack of personal service.
  10. ATM machine may malfunction.
  11. Last, ATM machines can be targeted by criminals, robbers, and hackers.

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