how do atms work

ATMs work by acting as secure data terminals that connect your card to your bank's system. When you insert your card and enter your PIN, the ATM reads your card data and immediately encrypts the PIN. This request is then routed via a central network, such as the National Financial Switch (NFS), to your issuing bank. Your bank verifies the PIN, checks the account balance, and confirms the transaction. Upon receiving approval, the ATM's cash dispenser releases the requested cash, and a receipt is printed.