Essay on A breif HIstroy of ATMS

Essay on A breif HIstroy of ATMS

Length: 2401 words (6.9 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

A Brief History Of ATMs
ATMs have been around for almost a quarter of a century, but fees, especially double fees, for using them are a more recent phenomenon.

When ATMs were introduced in the 1970s, they were set up only inside or immediately outside their banks' branch offices. They were seen by banks largely as a way of saving money, by reducing the need for tellers. Even with the relatively expensive computer technology of the late '70s and early 80s, the cost of processing deposits and withdrawals via ATMs proved to be less than the cost of training and employing tellers to do the same work.

To encourage customers to embrace the technology and overcome their trepidations about putting their checks into a machine's slot rather than a teller's hands, banks originally didn't charge customers any fees for using ATMs. (Indeed, in time, some banks started charging customers for not using ATMs, through so-called "human teller fees" - a charge for each time a customer uses a teller for a service that could be performed by an ATM.)

Banks that embraced the ATM profited handsomely, often growing far faster than old-fashioned banks in the effort to get business from ordinary Americans.

At first, a bank's ATMs could only be used by consumers who already had checking or savings accounts with that bank, through the bank’s "proprietary ATM network."

However, by the early 80s, banks began to take advantage of improvements in telecommunications technology and formed "shared ATM networks" with other banks, allowing customers of one bank to withdraw money by using ATMs of other banks. Banks paid other ATM owners "interchange" fees, to cover the marginal cost of the "off-us" transactions by its customers on the owner's machines. Banks paid the network a "switch" fee per transaction, plus an annual "membership" fee, to cover the costs of the network. Originally, these fees were not directly passed onto consumers.

After all, from the perspective of a bank, banks that joined the network could advertise that their customers could get access to their money from far more locations than those banks who didn't belong. Yet, the bank would not only not have to pay for tellers; it wouldn't have even have to pay for the cost of building and maintaining most of the extra ATMs from which customers could acce...

... middle of paper ...

...rile up public opinion even more.

What the future holds for ATM fees is uncertain. What is certain, though, is that even the original promoters of the ATM could not have imagined what a profit machine their invention would be 25 years later.

After all, in how many businesses could you get away with charging money for a service you once gave away, without markedly improving the quality of the service (even the latest ATMs can do little more than the "accept deposits", "transfer money between accounts", and "withdraw up to $300" that the ATMs of the late 1970s could do) . . . and despite the price of the underlying technology having dropped to a fraction of its original cost?

So much for making money the old-fashioned way . . . by earning it.

-- K.D. Weinert

K.D. Weinert is the Planning Director for the Fund for Public Interest Research. He began using ATM machines in 1975, starting with Bay Banks in Massachusetts, which merged with numerous local banks, then merged with Bank of Boston, then merged with Fleet Fleet-BankBoston has one of the most dominant ATM market shares in the country, controlling nearly two-thirds of all ATMs in Massachusetts.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Japan - Breif History from WWII Essay

- Japan - Breif History from WWII INTRODUTION: Without a good history, no nation can ever be considered developed. It is the history that makes or breaks a country. Japans history is very unique. During and after WWII their country was in ruins - literally. All their previous allies had deserted them, they were alone and destroyed by the Americans, an unlikely ally. I will focus on the impacts that America had on Japan, and then how Japan got themselves to the title of "The Second Most Developed Country"....   [tags: Japanese Japan History]

Free Essays
461 words (1.3 pages)

A Very Breif Biography of Bill Gates Essays

- ... Microsoft is an extremely lucrative company. It would be nothing without Bill Gates. He knew that even the best hardware was not worth much to people if they did not know how to use it (3). He wrote software to make sure the computer could do what people wanted it to. Microsoft succeeded for two reasons. It was focused on designing software product that preformed well and was easy to operate (3). Gates’ stubborn pursuit of perfection pushed the Microsoft team to improving their products. By 1995, a Microsoft operating system could be found in 80% of the world’s PC’s....   [tags: modern learders and successful entrepreneurs]

Free Essays
590 words (1.7 pages)

Analysis of The Histroy and Topography of Ireland by Gerald of Wales Essay

- For Gerald of Wales, religion was one of the most essential aspects of being a civilized human being. Therefore, when he wrote, The History and Topography of Ireland, he portrayed its inhabitants as subhuman and barbaric during his apparent travels to Ireland. As a colonizer, Gerald picked a far away place in which many had not been to, in order to establish them as the “other”. Unfortunately, for Gerald, he may have ridiculed the Irish for their lifestyle conveyed in his writing, but his exploitation of them most likely was done because he could in fact relate to them....   [tags: religion, decisions, christianity]

Powerful Essays
1128 words (3.2 pages)

Active Noise Control: The Histroy of Noise Cancellation Essay examples

- INTRO The history of noise cancellation The idea of sound cancellation appeals to many people because of its myriad practical applications. Whether people use this technology for professional and realistic purposes or if they are interested in it because of its futuristic potential, sound cancellation appeals to many. This essay will discuss the wide variety of applications and the benefits and disadvantages of each idea in addition to its reasonableness. To begin, scientists in India are working on using the idea of active noise control in communication devices....   [tags: technology, applications, potential, cancellation]

Powerful Essays
605 words (1.7 pages)

Greco-Roman Histroy Essay

- Our past has so much knowledge that it would be silly to ignore it. All of the problems that have occurred could be prevented from happening again; all the achievements could be amplified by using them to our advantage. Sometimes people ignore the past, sometimes people embrace. This paper is about how we have, and have not, embraced the our Greco-Roman military history. Before getting in depth, I have to say that military has changed so drastically in the past 200 years because it has shifted from two masses of people going against each other, to both sides relatively hiding and engaging in as little hand-to-hand combat as possible....   [tags: past, knowledge, transportation, guns]

Powerful Essays
930 words (2.7 pages)

Modern Piracy With A Breif History Essay

- Piracy is usually determined as a seizure of property (ship, airplane or software) that holds no commission from the owner (“Piracy” 1). It is mostly linked to the dirty, bearded men that sailed the seven seas and robed merchant ships or ships that carried a valuable cargo. This however, was not the case in the late eighties and is definitely not the case today in the nineties. Now software pirates copy software without the permission of the company for their own personal benefits. Since piracy interrupts trade between nations it has been considered to be an offense against international law (“Piracy” 1)....   [tags: essays research papers fc]

Powerful Essays
2015 words (5.8 pages)

Essay Creative breif of Ballys Gym

- Creative Brief- Radio For Bally Total Fitness our intended advertising strategy is to appeal to young men and women aged 18-25. We would like to reach them through various channels by appealing to their emotions. We feel that by evoking such emotion will encourage each potential customer to take action. With our radio commercial, we want to reach out to those who believe that working out is like a chore. Also we want to let them know about the support system that Bally has to offer. Most people are not aware of the caring and professionally trained individuals who are there and willing to help out in our gyms....   [tags: essays research papers]

Free Essays
1702 words (4.9 pages)

breif explination of characters and themes of catcher in the rye Essay

- Catcher in the rye Vocabulary 1. Fencing - The art or sport of using a foil, epée, or saber in attack and defense. 2. Grippe - an acute febrile highly contagious viral disease. 3. Phonies - Something not genuine; a fake. 4. Ashamed - Feeling shame or guilt. 5. Compulsory - Obligatory; required: a compulsory examination 6. Peculiar - Unusual or eccentric; odd. 7. Descriptive - Involving or characterized by description; serving to describe. 8. Conceited - Holding or characterized by an unduly high opinion of oneself; vain....   [tags: essays research papers]

Free Essays
1182 words (3.4 pages)

Euthanasia in the Film Spiegelgrund by Angelika Schuster and Tristan Sindelgruber

- The Movie “Spiegelgrund“ by Angelika Schuster and Tristan Sindelgruber, from 1999, is an Austrian Documentary Film that shows the Euthanasia program in the third Reich, in Germany, Austria and especially in Vienna during the dictatorship of the Nazis. “Spiegelgrund” shows a unvarnished look at the handling of Austria`s history. During the movie the viewer gets to know four different persons, reporting about their own experience during euthanasia from the position of victims or family members of them....   [tags: histroy, nazis, dictatorship, euthanasia]

Powerful Essays
824 words (2.4 pages)

The Suffrage Movement Essay

- The suffrage movement, an instrumental incident in United States History, challenged woman to fight their oppression to secure their right to vote. Women like Carrie Chapman Catt devoted their lives to this cause, doing everything humanly possible to improve both their own lives and the lives of future women. When Speak’s Melinda Sordino composes a paper on these suffragettes, she discovers that their battle is not very dissimilar to her own. Through the influence of relentless suffragettes such as Carrie Chapman Catt speaking out for their rights, Melinda of Laurie Halse Anderson’s Speak musters up her own courage to uniquely “speak.” The suffrage movement of the late nineteenth and early...   [tags: United States Histroy, women, equality]

Powerful Essays
1813 words (5.2 pages)