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Running Head: AUTOMATED TELLER MACHINES

Automated Teller Machines

Name:
Institution:

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Introduction
The Automated Teller Machine (ATM) is probably one of the best inventions that the
20th century ever experienced. ATMs are not however known to have a single inventor. The first
ATM to ever be seen was created by an American Inventor by the name Luther Simjian. Simjian
created a machine known as a Bankograph which could accept Cheque and bank deposits. A
small microfilm camera was placed inside the Bankograph that ensured every snapshot of
deposits was kept. Customers received a copy of the photo as a receipt. (Digital, 2016). Todays
ATM machines are the most powerful computers that can carry out hundreds of transactions
ranging from dispensing medicine to buying airplane tickets. This paper aims to discuss the use
cases most appropriate for developing of an automated teller machine for a retail bank.
Case Study
A use case diagram is a diagram that shows the behavior of a system from a users
perspective. The diagram assists in expounding on the practical description of any system and its
major processes. Use case diagrams assists in the elaboration of tasks that are allocated to the
specific users and their interaction with the system. The processes that typically occur within any
specified system are known as use cases. Actors are entities or parties that are going to be
interacting with the system to be developed. Use cases are used in the design and implementation
phases of all software systems before actual development takes place.

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ATM withdrawal

An ATM withdrawal is a money-dispensing process initiated by a cardholder in an

ATM machine. The use case diagram involved has only two actors that interact with the system.
One being the ATM card holder and the ATM operator. The ATM operators ensure that they
perform regular diagnostics wen the ATM system goes up and when the system shuts down for
maintenance.

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A cardholder initiates a transaction session when he/she enters an ATM card in the card reader
slot of the machine. ATM then asks for the card holder pin to use the card. If the card holder
enters the correct personal identification number he/she is directed to the main menu of possible
transactions. The cardholder selects the withdraw option and the withdraw screen pops up. The
customer is prompted to enter an amount or choose a dollar amount from a list of possible
amounts displayed on the screen. After the cardholder has made a choice on the amount to
withdraw the teller machine asks the user if it should generate a receipt to indicate the
withdrawal. The machine then verifies that the account number has sufficient funds to carry out
the withdrawal transaction by first sending a bank request. If the bank approves the transaction,
the appropriate amount is dispensed by the ATM before it issues out a receipt. If the bank
application is rejected, the cardholder is prompted to enter another amount. A withdrawal
transaction can, however, be canceled at any point when the cardholder presses the Cancel key
on the ATM machine. If the bank reports that the users PIN is incorrect the Invalid PIN
extension is activated in an attempt to proceed with the transaction. The withdrawal transaction is
aborted if the customer too many wrong PIN attempts and the machine retains the ATM card.

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ATM deposit

An ATM deposit takes place when an actor feeds money from to the Automated Teller
Machine for the purpose of sending money to a cardholders bank account. Just like the deposit
the actors in this use case diagram are two. The card holder and the ATM operator who initiates
system startups and system shut downs. The teller machine requests the cardholder to input the
card pin then the cardholder is directed to the main screen where he/she should choose the
deposit option on the menu. There are two types of deposit for a teller machine. One type of
deposit is where the teller machine counts all the money that is fed into it and another is where a

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card holder feeds an envelope with money into the dispensing machine. For this case, the
consideration we will make will be using the envelope deposit teller machine. The card holder
then inputs the amount to deposit. When the cardholder selects the deposit amount, the
transaction is sent to the bank for verification if the ATM should accept the deposit to the
specified customer account. If the transaction undergoes approval the teller machine receives the
envelope from the client and checks it before issuing a receipt. A message is sent to the bank
immediately after a deposit has been made giving clearance to credit the customers account after
manual verification of the deposit envelope. The transaction involving deposits can be canceled
immediately the cancel key is pressed by the cardholder before feeding the envelope into the
vending machine. A transaction can also cancel if the card holder fails to insert an envelope into
the vending machine within the system allocated duration.

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ATM Account Transfer

Similar to the deposit and withdrawal the ATM account transfer has two actors. The card holder
and the ATM operator are the actors. The account transfer process is among the easiest ATM
transactions. When carrying out an amount transfer from one account to another one is prompted
to input the ATM pin. The card holder then chooses the option of funds transfer in the main menu
of the ATM screen. The teller machine then asks the user to choose the account where he/she
wishes to transfer funds to. The cardholder is then prompted to enter the amount which they
desire to transfer. The transaction is sent to the bank for approval and if the transaction is
approved the amount is forwarded to the specified bank account. If the bank rejects the

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transaction, the cardholder is requested to repeat the process again. This process is inclusive of
re-entering the account number with which one intended to send the money to and the amount
specified. The dispensing machine produces a receipt as evidence that amount has been sent.
The cardholder can cancel the transaction at any point when he/she feel so using the cancel key
on the teller machine.
Invalid Pin Extension
The invalid pin extension is initiated from an individual transaction when the bank reporting says
that the transaction was rejected due to an invalid PIN number. The card holder is prompted to
re-enter the card PIN and the request previously made is sent back to the bank again. Approval of
the application request leads to a continuation of the original case else the PIN-entering process
is repeated. A correct PIN is used for all transactions of a card holders session until either the
card is ejected from the teller machine or the cardholder cancels the transaction. The invalid pin
extension is present in all transactions whether transfers, withdrawals or deposit transactions.
Ethical Issues in ATMs
An automated teller machine ensures fair and equitable treatment of all the card holders
despite whoever the customer is. There are no dedicated services that divide the users of the
ATM whereby some are offered special treatment than others. (Bank, 2013) This non-bias
behavior ensures equality of service to all people visiting a vending machine to carry out
different transactions.
The ATM operates by transparency and involving the user. These actions assist in the
promotion of a doubt-free condition where the user is comfortable with the transaction. The

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design of the ATM ensures that trust is built between the machine and the ATM cardholder.
(Bank, 2013)
Conclusion
ATMs are the most dynamic machines and despite making cash readily available, they have
extensively saved time. The time would otherwise be wasted in long bank queues just to make a
simple withdrawal from your account. (NCR, 2015) Business cases assist in the accurate
modeling of situations before implementing and deploying a system and their usage in ATM
modeling ensures the best results.

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References
Bank, M. (2013). MBA Banking Code of Ethicsand of Banking Practice. Mauritius.
Digital, A. N. (2016). Automated Teller Machines - Inventions. Retrieved from www.history.com:
http://www.history.com/topics/inventions/automated-teller-machines
NCR. (2015, April 29). Why Atm's are an important to financial innovation. Retrieved from
www.ncr.com: http://www.ncr.com/company/blogs/financial/why-the-atm-is-importantto-financial-innovation