Can you guess where the first ATM in the United States made its debut?
The first ATM in the United States was launched in 1969 at Chemical Bank.
ATMs have revolutionized the way the world has experienced banking. Nowadays, we can easily spot one in many places around the world.
This machine continuously saves time, labor and makes a customer’s transaction easier.
But did you know that those ATMs we see everywhere didn’t come to America until 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 embraced ATMs.
First ATM in the United States
The first ATM in the United States was installed on September 2, 1969 at the Chemical Bank in Rockville Center, New York.
In 1969, six weeks after America landed on the moon, the country made another breakthrough. The giant leap of the launch of the country’s first ATM
According Wiredin the New York town of Rockville Center, 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, is said to have first had the idea for the machine while waiting in line at the bank.
Its main function was to distribute money to bank customers. It was the very first time that magnetically encoded reusable cards could be used to withdraw cash from an ATM.
Chemical Bank once had a campaign ad that stated, “On September 2, our bank will open at 9:00 a.m. and never close again!”
Earlier versions of ATMs required customers to buy 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 magnetic stripe card and without the intervention of a cashier.
This card will be used for customers to withdraw cash or pay bills using the machine.
However, the downside 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.
Chemical Bank ATM Obstacles
Chemical Bank also encountered serious problems with its ATMs.
At that time, the bank was having trouble with withdrawals because there was no way to check the remaining account balance to see if they had enough money for a withdrawal.
The bank tellers also had a dilemma of whether they were going to issue a card to the customer and not know if they had the money for it.
To solve the problem, Chemical Bank set a daily limit of $150 for ATM withdrawals.
Finding a manufacturer that could affix magnetic stripes to the back of bank cards and print receipts were two additional challenges to overcome.
Then there were bank resistance issues, which caused problems. Another problem facing the bank was the fear of losing customers.
The banks were concerned about customers not wanting to use the machine and opted to do a face-to-face transaction.
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Adoption of ATMs
Despite the many challenges, the ease and convenience of using ATMs prevailed and continued to improve over time.
Diebold was one of the first companies to recognize the profit potential of the new ATM market. Until then, the company manufactured safes and safes.
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 ATMs used in the United States.
Since many banks have started adapting the cards, ATM fraud and scams have also become commonplace.
In response to ATM related crimes, in 1996 New York implemented the ATM Safety Act. This law requires the protection of ATMs by the installation of reflective mirrors, surveillance cameras and locked entrances for their ATMs.
According Story, we now have a 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 United States had access to a bank account in 2005 and used their ATM cards six to eight times a month.
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