- Just to review the basics about ATMs, or automatic teller machines: You can conduct most of the same transactions with an ATM that you would at the teller’s window inside a bank.
- ATMs allow you to make deposits, get cash, pay bills, check balances, and transfer funds between accounts. These machines are used with a debit or ATM card and a PIN, which is a personal identification number. (For your own safety, never keep your PIN and your ATM or debit card together.)
- Point of Sale (POS) Transactions. Some ATM cards and debit cards can be used in retail establishments just like credit cards to purchase goods and services. Behind the scenes, rather than charging your purchase to a credit account, money is electronically drawn directly from your account and paid to the seller.
- Pre-authorized EFT transfers. EFTs are electronic funds transfers. This allows you to have funds automatically deposited to or withdrawn from your account. For example, you can authorize the direct deposit of your paycheck, social security, or dividends directly into your account. You can also pre-authorize your bank to make automatic transfers to others, such as for bill paying.
- Telephone transfers. This is another form of EFT, where you can transfer funds from one of your accounts to another, or authorize bill payments by phone.
- Most ATMs provide you with a receipt for the transaction, as do point of sale (POS) purchases. These receipts are the records of your electronic transactions and should be kept. Additionally, your periodic bank statement will show all the EFTs performed. This monthly statement is your proof of payment to another party and is your record for tax and other purposes. Any inconsistencies between these receipts and your statement can be taken up with your bank.
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