Modern self-service devices: what is the difference between a terminal and an ATM?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In our modern age, it is difficult to find a person who has never used self-service devices such as an ATM or a payment terminal in his life. We all withdraw cash from cards, replenish them, pay for any services, make transfers, and so on. For certain purposes, different self-service tools are needed, because their functionality is different. You should figure out how an ATM differs from a terminal.

What is an ATM machine?

To begin with, let's define what an ATM is and what functionality it has. Of course, time does not stand still, as does technology, and modern self-service devices differ from those that were released two or three years ago, as well as among themselves, depending on belonging to a particular bank.

So, an ATM (ATM) is a special automated equipment equipped with software designed to carry out transactions related to cash and plastic cards.

In order to understand whatan ATM differs from a terminal, consider its main functions:

1. Receiving cash from a bank card.
2. Getting information about the amount of funds in the account by requesting a balance or generating a statement.
3. Cash replenishment.
4. Transfer funds from card to card.
5. Acceptance of any payments, for example, payment for mobile communications, utility bills, etc.
6. Obtaining the identification data required to register for online banking.
7. Filing an application for any banking products, viewing personalized offers from the bank.

In a nutshell, the main functions of an ATM are to receive/withdraw cash from a card by entering a PIN code.

What is a payment terminal?

This type of self-service device is divided into two types:

• payment;
• information and payment.

To understand how an ATM differs from a terminal, let's define what the latter is. And also what functions it has.

Terminal is a specialized self-service device equipped with software, with the help of which payments are made in favor of legal entities by depositing cash.

Main functions:

• cash acceptance to replenish a bank card;
• repayment of loans;
• accepting funds for payment transactions;
• payment for services (cellularcommunications, utility bills, taxes, fines) and more;
• cash replenishment of electronic wallets.

In short, the main function of payment terminals is to accept funds to replenish a card or to make payments in favor of legal entities. The self-service information and payment device additionally provides reference services (for example, requesting a balance on a card, connecting SMS informing).

Comparative analysis

So what is the difference between an ATM and a payment terminal?

Having considered their definitions and functions, we come to the following conclusions.

	ATM	Payment terminal
Cash out	Yes	Very rare
Acceptance of funds	Yes	Yes
Owner	Bank only	Bank, legal entity/ IP
Presence of a touch keyboard	No more often	Yes
Payments in favor of legal entities. faces	There is, but not all, a relatively small database of legal entities. faces	Yes, a very extended database of legal entities. faces
Need to use bank card	Yes, with mandatory authorization by entering a secret PIN	Only in bank terminals for certain card transactions
Appearance, dimensions	Impressive size,because we need boxes for storing large amounts of cash (for receiving / issuing); obligatory protrusions on the sides of the keyboard, for the security of entering a PIN code	Small, keyboard on the screen itself

It should be noted that the main number of payment (information and payment) terminals belonging to the banking sector falls on Sberbank. This bank has been issuing them for a long time and today boasts a variety of options and an extensive menu of self-service devices.

What is the difference between an ATM and a Sberbank terminal?

The question arises precisely because this bank has the largest number of self-service devices (compared to other similar institutions).

Basically, the differences are the same as discussed above. That is: not all ATMs accept cash, but absolutely all of them give out, and terminals, on the contrary, are always ready to save you from cash, but they won’t give it back to you. That is why self-service devices are so different in appearance. In the photo below, you can clearly see how an ATM differs from a Sberbank terminal.

There are two ATMs on the left, they are more impressive in size than the terminals shown in the photo on the right. It is also not hard to guess that ATMs are protected and much more compliant with security requirements than terminals.

About POS terminals

Speaking about the differences between self-service devices, this “manual” device cannot be ignored.

POS terminal –This is a special device that fits in a pocket and is used at retail outlets on the counter at the cashier for non-cash payment for purchases. By swiping, inserting or simply attaching a bank card to this terminal, and then (if necessary) entering a PIN code, the buyer agrees to debit funds from his account in favor of the store and purchases a product or service.

Conclusion

To sum up, it should be noted that modern self-service devices are very convenient, fast and simple, because there is no need to stand in lines, come to the bank office strictly during its opening hours, as a result of which the most precious thing is saved man has time. And how the terminal differs from the ATM is now known. However, we repeat the main feature: the first one does not dispense cash.