The first ATM in the US was launched in 1969 at Chemical Bank.
The ATM machines revolutionized how the world experienced banking. Nowadays, we can easily spot one in numerous locations around the world.
This machine continually saves time, workforce, and provides ease for a customer's transaction.
But did you know that these ATM machines we see everywhere only came to America in the late 60s?
The first machine was made available in 1969 in New York. This article is the story behind the rich history of how we adopted ATMs.
First ATM in the US
The first ATM in the US was installed on September 2, 1969, at the Chemical Bank in Rockville Centre, New York.
In 1969, six weeks after America landed on the moon, the country had another breakthrough. The giant leap of launching the country's first ever automated teller machine
According to Wired, in the New York city of Rockville Centre, a machine known as the Docuteller was mounted on the wall of the Chemical Bank.
Docutteler was developed by a Dallas-based company named Docutel.
One of its executives, Don Wetzel, was said to have first come up with the idea for the machine while standing in line at the bank.
Its primary function was to dispense cash to bank customers. It was the very first time that magnetically coded, reusable cards could be used to withdraw cash from an ATM.
Chemical Bank once had a campaign advertisement that stated, "On Sept. 2, our bank will open at 9:00 and never close again!"
Earlier versions of automated banking machines required customers to purchase a one-time voucher or card from the bank.
The innovative machine was the first of its kind in the United States to dispense cash with the use of a mag-stripe card and without the intervention of a teller.
This card will be used in order for customers to be able to withdraw cash or pay bills using the machine.
However, the drawback is that they will not be able to transfer money from one account to another or receive deposits through the ATM. Although this feature arrived after a few years in 1971.
Hurdles of Chemical Bank's ATMs
Chemical Bank also encountered serious problems with their ATMs.
At that time, the bank had problems with withdrawals as there was no way to check the account's remaining balance to know if they had enough money for a withdrawal.
The bank tellers also had a dilemma about whether they would issue the customer a card and not know if they had the money for it.
To resolve the problem, Chemical Bank set a daily limit of $150 for ATM withdrawals.
Finding a manufacturer who could put magnetic stripes on the back of the bank cards and printing receipts were two additional challenges that needed to be overcome.
Then there were issues with resistance from banks, which caused problems. Another problem the bank faced was the fear of losing customers.
Banks were concerned about customers who would not like to use the machine and opted to do a face-to-face transaction.
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ATM Adoptation
Despite the numerous challenges, the ease and convenience of using ATMs has prevailed and continued to improve over time.
Diebold was one of the first companies to recognize the potential for profit in the new market for ATMs. Up until that point, the company had been in the business of manufacturing safes and vaults.
However, in 1974, they made the decision to expand their product line and installed their first TABS 500 ATM. By 1995, Diebold had already produced more than half of the automated teller machines that were in use in the United States.
Since numerous banks began the adaptation of cards, ATM fraud and scams have also become rampant.
In response to ATM-related crimes, in 1996, New York implemented the ATM Safety Act. This law requires the protection of ATM machines through the installation of reflective mirrors, surveillance cameras, and locked entryways for their ATMs.
According to History, we now have one new ATM every five minutes. Nowadays, ATMs have been widely adopted in different parts of the world.
It is estimated that more than 170 million adults in the US had access to a bank account in 2005 and used their ATM cards between six and eight times per month.
