Every industry has terms that are specific to the equipment and processes. As an ATM placement company, our team at Hella ATMs can help you understand what some of these mean when it comes to owning and operating an ATM. Read our short glossary below to learn for yourself.
ATM stands for “automated teller machine.” They’re commonly referred to as ATM machines, which is incorrect as it’s a redundant use of the word machine. An ATM is designed to serve the same purpose as a bank teller by using a touchscreen or keypad. You can withdraw and deposit money to your account and check your account balance.
The CVV is the three- or four-digit number found on the front or back of your card and stands for “card verification value.” This is used to verify that your card is legitimate and the number hasn’t either been stolen or put on a cloned card. It’s one of many security features used on debit and credit cards to prevent fraud.
A debit card is made to look and function similarly to a credit card. In fact, many debit cards offered by financial institutions have a function built into the account that allows them to be used as a credit card. However, the main point that distinguishes your debit card from a credit card is that it pulls money directly from your bank account. Conversely, the credit function on your card essentially creates a loan from your account that is paid later, which is why a debit transaction comes out immediately but a credit transaction will take several days.
A PIN is short for “personal identification number.” Similar to an ATM, many people erroneously refer to this as their “PIN number” but this is also a repetitive use of the word number. A PIN is used to verify your identity when you use your debit card in any transaction. Your PIN provides the same authorization as a signature in authorizing the use of your card in a transaction.
A service fee is an amount that you’re charged for using an ATM that’s not associated with your financial institution. For instance, when you go to a convenience store and withdraw $20, there will likely be a fee of $3 attached to the transaction. This fee will be automatically withdrawn from your account. So, while you’re taking $20 cash for yourself, your bank account summary will show a transaction of $23. Service fees are how the operator of an ATM makes money while offering the service.
Skimming is a process by which criminals will use a device to take information from the magnetic strip on a debit or credit card. This information can be used to make fraudulent purchases online or clone cards to use at physical locations. This is most commonly done at gas station pumps or on ATMs that aren’t closely monitored. If you have an ATM in your store, you must keep an eye on your card reader to prevent skimming attacks on your customers.
Contact us for more
If you’d like to learn more about the ATM industry, please get in touch with our team at Hella ATMs. We’re an ATM placement company that can help educate you on owning and operating an ATM as well as all that comes with it. Give us a call today at 1-800-484-5752 or send a message using our contact form. You can also send us an email at firstname.lastname@example.org. We make it easier than ever to get an ATM for your store.