An ATM allows us to: withdraw cash (but only up to a maximum daily limit) pay bills electronically
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check the account balance – (the amount of money in the account) order a bank statement
purchase credit for mobile phones
However, you cannot use an ATM card to withdraw more money than you actually have in your account.
The ATM reads the computer chip embedded in the current account holder’s ATM card to recognise the card and the account. If the card is valid, the person has to enter their secret Personal Identification Number (PIN). A PIN is a Personal Identification Number known only to the card holder. It is to prevent a stolen card being used by another person. Entering the correct PIN tells the ATM that the person using the card is the owner of the account.
(c) Debit cards are provided by banks to holders of current accounts. They allow money to be transferred electronically from a customer’s current account into a retailer’s bank account. When Fiona Foley wants to pay for her shopping, the card is put into or held up against a card reader at the cash desk and the amount of the purchase is keyed in. Fiona then has to enter her debit card PIN. If the PIN is correct, the debit card allows the money in her account to be electronically transferred across to the retailer’s account. If she does not have enough money in her current account, then the transaction will be declined and the retailer will not allow the purchase to go ahead.
Debit cards are a safe and convenient way of making larger payments when shopping without having to carry large sums of cash. Users cannot buy things if they don’t have enough money in their current account, which means that they cannot accumulate debts.
(d) Standing orders are planned automatic electronic payments of a regular fixed amount of money out of a current account to someone else’s account. Paying by
