We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is ATM Processing?

Patrick Wensink
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

When an automated teller machine (ATM) works with a network of banks to approve a financial transaction, this is called ATM processing. It is a multi-step action that only takes a matter of seconds. By utilizing phone lines and bank account records, the machine knows whether the card holder has the funds to remove money from an account. Processing does not just mean removing money, because it is also used for checking a bank balance and depositing funds.

ATM processing during a withdrawal begins at a personal ATM machine when a card holder inserts a bank card and inputs that card's secret code. The code gives the machine permission to begin processing this card. The machine is already hooked up to a functional phone line and dials a specific toll free number that gives it access to its ATM alliance. The machine then provides its terminal identification number, so the network knows the location of the machine.

The bank is next contacted during the ATM processing. Banks all have a special line, much like the internet, that runs through the phone system and allows ATMs to access select account information. With the card and its corresponding secret code, the bank will check that specific account to inspect its funds.

The bank reviews the card holder's account to ensure there is enough money to cover the requested withdrawal from the ATM, including ATM fees. If the account clears, the bank sends a message back to the teller machine during this stage of ATM processing. This message authorizes the machine to dispense the money to the card holder. Amazingly, this process normally takes under a minute, usually only a matter of seconds. Many years ago, when online technology was still crude, processing took much more time but now is nearly instantaneous.

ATM processing is most commonly associated with making withdrawals, but the teller machine can also perform other duties. Machines associated with the card holder's bank will usually accept deposits. These work in reverse of withdrawals, by taking in checks and informing the bank to add that specified amount to the card holder's account. Another technique that requires processing is checking an account balance. This can normally be performed at any ATM and follows the same processing guidelines, but dispenses an account balance on the receipt instead of giving the operator cash.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Patrick Wensink
By Patrick Wensink , Former Writer
Patrick Wensink, a bestselling novelist and nonfiction writer, captivates readers with his engaging style across various genres and platforms. His work has been featured in major publications, including attention from The New Yorker. With a background in communication management, Wensink brings a unique perspective to his writing, crafting compelling narratives that resonate with audiences.

Discussion Comments

Patrick Wensink

Patrick Wensink

Former Writer

Patrick Wensink, a bestselling novelist and nonfiction writer, captivates readers with his engaging style across various...
Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.