Editing ATM (section)

== History ==

The idea of out-of-hours cash distribution was first put into practice in Japan, the United Kingdom and Sweden.<ref name="Atlantic">{{cite magazine|title=A Brief History of the ATM|url=https://www.theatlantic.com/technology/archive/2015/03/a-brief-history-of-the-atm/388547/|magazine=The Atlantic|access-date=26 April 2015|date=26 March 2015|url-status=live|archive-url=https://web.archive.org/web/20150428065642/http://www.theatlantic.com/technology/archive/2015/03/a-brief-history-of-the-atm/388547/|archive-date=28 April 2015}}</ref><ref>{{cite web|url=https://www.bloomberg.com/opinion/articles/2013-03-27/how-the-atm-revolutionized-the-banking-business |first=Bernardo |last=Batiz-Lazo|title=How the ATM Revolutionized the Banking Business|publisher=[[Bloomberg L.P.|Bloomberg]]|date=27 March 2013|url-status=live|archive-url=https://web.archive.org/web/20140209154037/http://www.bloomberg.com/news/2013-03-27/how-the-atm-revolutionized-the-banking-business.html|archive-date=9 February 2014}}{{pb}}{{cite web |url=https://www.atmia.com/files/50th%20Anniversary/50th_ATM_Anniversary_Fact_Sheet_-_06272016.pdf |title=ATMIA 50th Anniversary Factsheet |author=<!--Staff writer(s); no by-line.--> |date=October 2015 |website=www.atmia.com |publisher=ATM Industry Association |access-date=29 June 2016 |url-status=live |archive-url=https://web.archive.org/web/20160818110157/https://www.atmia.com/files/50th%20Anniversary/50th_ATM_Anniversary_Fact_Sheet_-_06272016.pdf |archive-date=18 August 2016 }}</ref>

In 1960, Armenian-American inventor [[Luther Simjian]] invented an automated deposit machine (accepting coins, cash and cheques) although it did not have cash dispensing features.<ref>"Machine Accepts Bank Deposits", ''The New York Times'', 12 April 1961</ref> His US patent was first filed on 30 June 1960 and granted on 26 February 1963.<ref>{{cite patent |country=US |number=3079603 |status=patent |title=Depository machine combined with image recording means |gdate=1963-02-26 |fdate=1960-06-30 |inventor=Luther G Simjian }}</ref> The roll-out of this machine, called Bankograph, was delayed by a couple of years, due in part to Simjian's Reflectone Electronics Inc. being acquired by Universal Match Corporation.<ref>"Universal Match Maps Acquisition", ''The New York Times'', 22 March 1961</ref> An experimental Bankograph was installed in New York City in 1961 by the [[Citibank|City Bank of New York]], but removed after six months due to the lack of customer acceptance.<ref>{{cite web|url=http://www.atmmarketplace.com/article/217157/From-punchcard-to-prestaging-50-years-of-ATM-innovation |title=From punchcard to prestaging: 50 years of ATM innovation |publisher=ATM Marketplace |date=31 July 2013 |access-date=27 September 2013 |url-status=dead |archive-url=https://web.archive.org/web/20130815222832/http://www.atmmarketplace.com/article/217157/From-punchcard-to-prestaging-50-years-of-ATM-innovation |archive-date=15 August 2013 }}</ref>

In 1962 Adrian Ashfield invented the idea of a card system to securely identify a user and control and monitor the dispensing of goods or services. This was granted UK Patent 959,713 in June 1964 and assigned to Kins Developments Limited.<ref>{{cite patent |country=GB |number=959713 |status=patent |title=Access Controller |pubdate=1962-02-15 |fdate=1963-05-15 |gdate=1964-06-03 |inventor=Adrian Walter Francis Ashfield |assign=Kins Developments Ltd}}</ref>

=== Invention ===
In 1966, a Japanese device called the "Computer Loan Machine" dispensed cash as a three-month loan at an annual interest rate of 5% upon inserting a credit card.<ref>'Fast Machine With a Buck', "Pacific Star and Stripes", 7 July 1966</ref><ref>'Instant Cash with a Credit Card', "ABA Banking Journal", January 1967</ref> However, little is known about the device.<ref name="Atlantic"/>

[[File:RegVarneyATM.jpg|thumb|Actor [[Reg Varney]] using the world's first cash machine at [[Barclays Bank, Enfield]], north London on 27 June 1967]]
A cash machine was installed at [[Barclays Bank, Enfield]], North London in the United Kingdom, on 27 June 1967. This is generally considered the world's first ATM.<ref>{{Cite news |last=Murray |first=Amelia |date=2017-06-25 |title=The story behind the world's first cashpoint |language=en-GB |work=The Telegraph |url=https://www.telegraph.co.uk/personal-banking/current-accounts/story-behind-worlds-first-cashpoint/ |access-date=2023-04-10 |issn=0307-1235|postscript=none}}; {{Cite news |last=Alberge |first=Dalya |date=2023-04-10 |title=Bank that opened world's first ATM given heritage status |language=en-GB |work=The Telegraph |url=https://www.telegraph.co.uk/news/2023/04/10/barclays-bank-first-atm-listed-status/ |access-date=2023-04-10 |issn=0307-1235}}</ref><ref name=":0">{{cite web|last1=Batiz-Lazo|first1=Bernardo|last2=Reid|first2=Robert J. K.|title=Evidence from the Patent Record on the Development of Cash Dispensing Technology|url=http://mpra.ub.uni-muenchen.de/9461/1/MPRA_paper_9461.pdf|publisher=Munich Personal RePEc Archive|access-date=27 April 2015|date=30 June 2008|page=4|url-status=live|archive-url=https://web.archive.org/web/20150904045127/https://mpra.ub.uni-muenchen.de/9461/1/MPRA_paper_9461.pdf|archive-date=4 September 2015}}</ref> This machine was inaugurated by English actor [[Reg Varney]] as part of the launch publicity.<ref>{{cite web | url = http://www.bbc.co.uk/london/content/articles/2007/06/26/cash_machine_feature.shtml | title = Enfield's cash gift to the world | publisher = [[BBC London]] | date = 27 June 2007 | url-status = live | archive-url = https://web.archive.org/web/20151103030534/http://www.bbc.co.uk/london/content/articles/2007/06/26/cash_machine_feature.shtml | archive-date = 3 November 2015 }}</ref> This invention is credited to the engineering team led by [[John Shepherd-Barron]] of printing firm [[De La Rue]],<ref name="milligan">{{cite news | url = http://news.bbc.co.uk/2/hi/business/6230194.stm | title = The man who invented the cash machine | work = BBC News | date = 25 June 2007 | access-date = 26 April 2010 | first = Brian | last = Milligan | url-status = live | archive-url = https://web.archive.org/web/20091226192112/http://news.bbc.co.uk/2/hi/business/6230194.stm | archive-date = 26 December 2009 }}</ref> who was awarded an [[Order of the British Empire|OBE]] in the [[2005 New Year Honours]].<ref>{{cite news| url = http://news.bbc.co.uk/2/hi/uk_news/scotland/4135269.stm | title = ATM inventor honoured | work = BBC News | date=31 December 2004 | access-date=26 April 2010| archive-url= https://web.archive.org/web/20100608040555/http://news.bbc.co.uk/2/hi/uk_news/scotland/4135269.stm| archive-date= 8 June 2010 | url-status= live}}</ref><ref name="Networld Media Group">{{cite book |first1=Tom |last1=Harper |first2=Bernardo |last2=Batiz-Lazo |title= Cash Box: The Invention and Globalization of the ATM |publisher= Networld Media Group |date=2013 |isbn=978-1935497622}}</ref> Transactions were initiated by inserting paper cheques issued by a teller or cashier, marked with [[carbon-14]] for machine readability and security, which in a later model were matched with a four-digit [[personal identification number]] (PIN).<ref name="milligan" /><ref name="latimes1">{{cite news | title = ATM inventor John Shepherd-Barron dies at age of 84 on 20th May 2010 | newspaper = Los Angeles Times| url = http://latimesblogs.latimes.com/afterword/2010/05/atm-inventor-john-shepherdbarron-dies-at-84.html | date = 19 May 2010 | url-status = live | archive-url = https://web.archive.org/web/20100523172520/http://latimesblogs.latimes.com/afterword/2010/05/atm-inventor-john-shepherdbarron-dies-at-84.html | archive-date = 23 May 2010 }}</ref> Shepherd-Barron stated: {{blockquote|"It struck me there must be a way I could get my own money, anywhere in the world or the UK. I hit upon the idea of a chocolate bar dispenser, but replacing chocolate with cash."<ref name="milligan" />}}

[[File:Atmplaque.jpg|thumb|left|upright|[[Blue plaque]] on the Enfield Barclays commemorating the world's first cash machine]]
The Barclays–De La Rue machine (called De La Rue Automatic Cash System or DACS)<ref>{{Cite web|title=History of Automatic Teller Machines or ATM|last=Bellis|first=Mary
| date= 15 April 2019
|url=https://www.thoughtco.com/automatic-teller-machines-atm-1991236|access-date=2023-03-27|website=ThoughtCo|language=en}}</ref> beat the [[List of banks in Sweden|Swedish saving banks]]' and a company called Metior's machine (a device called Bankomat) by a mere nine days and British [[National Westminster Bank|Westminster Bank's]] [[Smiths Group|Smith Industries]] [[Chubb Locks|Chubb]] system (called Chubb MD2) by a month.<ref>{{cite journal | url = https://ideas.repec.org/p/pra/mprapa/3689.html | title = The emergence and evolution of ATM networks in the UK, c. 1967–2000 | author = B. Batiz-Lazo | journal = Mpra Paper | date = June 2007 | publisher = Business History, 2009 (51:1). Taylor and Francis, 2009. | url-status = live | archive-url = https://web.archive.org/web/20141103165250/https://ideas.repec.org/p/pra/mprapa/3689.html | archive-date = 3 November 2014 }}</ref> The online version of the Swedish machine is listed to have been operational on 6 May 1968, while claiming to be the first online ATM in the world, ahead of similar claims by [[IBM]] and [[Lloyds Banking Group|Lloyds Bank]] in 1971,<ref>{{cite journal | url = http://www.ebhsoc.org/journal/index.php/journal/article/view/274 | title = The origins of the cashless society: cash dispensers, direct to account payments and the development of on-line real-time networks, c. 1965–1985 | journal = Essays in Economic & Business History | volume = 32 | pages = 100–137 | author = B. Batiz-Lazo, T. Karlsson and B. Thodenius | publisher = Essays in Economic and Business History, 2014 (32). The Economic and Business History Society, 2014. | url-status = live | archive-url = https://web.archive.org/web/20140714184815/http://www.ebhsoc.org/journal/index.php/journal/article/view/274 | archive-date = 14 July 2014 |date=24 April 2014 }}</ref> and [[OKI (company)|Oki]] in 1970.<ref>{{cite web |title=Automated Teller Terminal AT-20P |url=http://museum.ipsj.or.jp/en/heritage/AT-20P.html |website=IPSJ Computer Museum |publisher=[[Information Processing Society of Japan]] |access-date=22 July 2019}}</ref> The collaboration of a small start-up called Speytec and [[Midland Bank]] developed a fourth machine which was marketed after 1969 in Europe and the US by the [[Burroughs Corporation]]. The patent for this device (GB1329964) was filed in September 1969 (and granted in 1973) by John David Edwards, Leonard Perkins, John Henry Donald, Peter Lee Chappell, Sean Benjamin Newcombe, and Malcom David Roe. Both the DACS and MD2 accepted only a single-use token or voucher which was retained by the machine, while the Speytec worked with a card with a magnetic stripe at the back. They used principles including [[radiation|Carbon-14]] and low-coercivity [[magnetism]] in order to make fraud more difficult.

The idea of a [[Personal identification number|PIN]] stored on the card was developed by a group of engineers working at [[Smiths Group]] on the Chubb MD2 in 1965 and which has been credited to [[James Goodfellow]]<ref>{{cite web|url=https://www.bbc.co.uk/programmes/b013n554|title=James Goodfellow, Series 2, Pioneers - BBC Radio 4 Extra|website=BBC|access-date=29 March 2018}}</ref> (patent GB1197183 filed on 2 May 1966 with Anthony Davies). The essence of this system was that it enabled the verification of the customer with the debited account without human intervention. This patent is also the earliest instance of a complete "currency dispenser system" in the patent record. This patent was filed on 5 March 1968 in the US (US 3543904) and granted on 1 December 1970. It had a profound influence on the industry as a whole. Not only did future entrants into the cash dispenser market such as [[NCR Corporation]] and [[IBM]] licence Goodfellow's PIN system, but a number of later patents reference this patent as "Prior Art Device".<ref name=":0" />

=== Propagation ===
Devices designed by British (i.e. Chubb, De La Rue) and Swedish (i.e. Asea Meteor) manufacturers quickly spread out. For example, given its link with [[Barclays]], [[Bank of Scotland]] deployed a DACS in 1968 under the 'Scotcash' brand.<ref>{{Cite web |title=Our Heritage |url=https://www.lloydsbankinggroup.com/who-we-are/our-heritage.html |access-date=2023-04-10 |website=www.lloydsbankinggroup.com |language=en}}</ref> Customers were given personal code numbers to activate the machines, similar to the modern PIN. They were also supplied with £10 vouchers. These were fed into the machine, and the corresponding amount debited from the customer's account.

A Chubb-made ATM appeared in [[Sydney]] in 1969. This was the first ATM installed in Australia. The machine only dispensed $25 at a time and the bank card itself would be mailed to the user after the bank had processed the withdrawal.

[[File:ABC ATMs.ogv|thumb|1969 [[Australian Broadcasting Corporation|ABC]] news report on the introduction of ATMs in [[Sydney, Australia]]. People could only receive [[Australian dollar|AUS $]]25 at a time and the bank card was sent back to the user at a later date. This was a Chubb machine.]]
Asea Metior's Bancomat was the first ATM installed in Spain on 9 January 1969, in central [[Madrid]] by [[Banesto]]. This device dispensed 1,000 [[Spanish peseta|peseta]] bills (1 to 5 max). Each user had to introduce a security personal key using a combination of the ten numeric buttons.<ref>{{cite web | url = http://hemeroteca.abc.es/nav/Navigate.exe/hemeroteca/madrid/abc/1969/01/09/048.html | title = Bancomat (In Spanish) | author = Marino Gomez-Santos | publisher = ABC | date = 9 January 1969 | url-status = live | archive-url = https://web.archive.org/web/20140811221708/http://hemeroteca.abc.es/nav/Navigate.exe/hemeroteca/madrid/abc/1969/01/09/048.html | archive-date = 11 August 2014 }}</ref> In March of the same year an ad with the instructions to use the Bancomat was published in the same newspaper.<ref>{{cite web | url = http://hemeroteca.abc.es/nav/Navigate.exe/hemeroteca/madrid/abc/1969/03/18/058.html | title = Bancomat Banesto (commercial ad with instructions for use in Spanish) | publisher = ABC | date = 18 March 1969 | url-status = live | archive-url = https://web.archive.org/web/20140811221714/http://hemeroteca.abc.es/nav/Navigate.exe/hemeroteca/madrid/abc/1969/03/18/058.html | archive-date = 11 August 2014 }}</ref>

In [[West Germany]], the first ATM was installed in the 50,000-people university city of [[Tübingen]] on May 27, 1968, by Kreissparkasse Tübingen. It was built by [[Aalen]]-based safe builder Ostertag AG in cooperation with [[AEG-Telefunken]]. Each of the 1,000 selected users were given a double-bit key to open the safe with "Geldausgabe" written on it, a plastic identification card, and ten [[punched card]]s. One punch card functioned as a withdrawal slip for a 100 [[Deutsche Mark|DM]] bill, the maximum limit for daily use was 400 DM.<ref>{{Cite news |last=Pötzl |first=Norbert F. |date=2018-05-26 |title=1968 in Tübingen: Deutschlands erster Geldautomat |language=de |work=Der Spiegel |url=https://www.spiegel.de/geschichte/1968-in-tuebingen-deutschlands-erster-geldautomat-a-1208937.html |access-date=2023-05-21 |issn=2195-1349}}</ref><ref>{{Cite news |last=Heeg |first=Thiemo |date=2008-12-11 |title=55.000 Geräte in Deutschland: Happy bargeldlos: Der Geldautomat wird 40 |language=de |work=FAZ.NET |url=https://www.faz.net/aktuell/wirtschaft/55-000-geraete-in-deutschland-happy-bargeldlos-der-geldautomat-wird-40-1740609.html |access-date=2023-05-21 |issn=0174-4909}}</ref>

===Docutel in the United States===
[[File:ATM 750x1300.jpg|thumb|An [[NCR Corporation|NCR]] Personas 75-Series interior, multi-function ATM in the United States]]
After looking firsthand at the experiences in Europe, in 1968 the ATM was pioneered in the U.S. by [[Donald Wetzel]], who was a department head at a company called Docutel.<ref name="Networld Media Group"/> Docutel was a subsidiary of Recognition Equipment Inc of [[Dallas]], [[Texas]], which was producing optical scanning equipment and had instructed Docutel to explore automated baggage handling and automated gasoline pumps.<ref>{{cite book |first=James |last=Essinger  |title= ATM Networks: Their Organization, Security and Future |publisher= Elsevier International |date=1987}}</ref>

On 2 September 1969, [[Chemical Bank]] installed a prototype ATM in the U.S. at its branch in [[Rockville Centre, New York]]. The first ATMs were designed to dispense a fixed amount of cash when a user inserted a specially coded card.<ref>{{cite book |first=Rob |last=Kirkpatrick |url=https://books.google.com/books?id=XZMrIchANY4C&pg=PA266 |title=1969: The Year Everything Changed |publisher=Skyhorse Publishing Inc. |date=2009 |page=266 |isbn=9781602393660 |url-status=live |archive-url=https://web.archive.org/web/20111225211738/http://books.google.com/books?id=XZMrIchANY4C&pg=PA266 |archive-date=25 December 2011 }}</ref> A Chemical Bank advertisement boasted "On Sept. 2 our bank will open at 9:00 and never close again."<ref>{{cite book |url=https://books.google.com/books?id=BtEDAAAAMBAJ&pg=PA84 |title=Popular Mechanics - Google Books |access-date=2011-02-11 |url-status=live |archive-url=https://web.archive.org/web/20111225214202/http://books.google.com/books?id=BtEDAAAAMBAJ&lpg=PA84&pg=PA84 |archive-date=25 December 2011 |publisher=Hearst Magazines |date=December 2005 }}</ref> Chemical's ATM, initially known as a Docuteller was designed by [[Donald Wetzel]] and his company Docutel. Chemical executives were initially hesitant about the electronic banking transition given the high cost of the early machines.  Additionally, executives were concerned that customers would resist having machines handling their money.<ref>{{cite web|url=http://americanhistory.si.edu/collections/comphist/wetzel.htm |title=Interview with Mr. Don Wetzel |publisher=Americanhistory.si.edu |access-date=2011-02-11| archive-url= https://web.archive.org/web/20110220214346/http://americanhistory.si.edu/collections/comphist/wetzel.htm| archive-date= 20 February 2011 | url-status= live}}</ref> In 1995, the [[Smithsonian National Museum of American History]] recognised Docutel and Wetzel as the inventors of the networked ATM.<ref>{{cite web|url=http://www.thocp.net/hardware/atm.htm |title=Automatic teller machine |publisher=Thocp.net |work=The History of Computing Project |date=17 April 2006 |access-date=2011-02-11| archive-url= https://web.archive.org/web/20110220215034/http://www.thocp.net/hardware/atm.htm| archive-date= 20 February 2011 | url-status= live}}</ref> To show confidence in Docutel, Chemical installed the first four production machines in a marketing test that proved they worked reliably, customers would use them and even pay a fee for usage. Based on this, banks around the country began to experiment with ATM installations.

By 1974, Docutel had acquired 70 percent of the U.S. market; but as a result of the early 1970s worldwide recession and its reliance on a single product line, Docutel lost its independence and was forced to merge with the U.S. subsidiary of [[Olivetti]].<ref>{{cite web |title=The rise and fall of Docutel, the Dallas-area company that created the first ATMs |url=https://www.dallasnews.com/news/from-the-archives/2022/03/06/the-rise-and-fall-of-docutel-the-dallas-area-company-that-created-the-first-atms/ |website=Dallas News |access-date=4 November 2022 |language=en |date=6 March 2022}}</ref>

In 1973, Wetzel was granted [http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=3761682.PN.&OS=PN/3761682&RS=PN/3761682 U.S. Patent # 3,761,682] {{Webarchive|url=https://web.archive.org/web/20170905225829/http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=3761682.PN.&OS=PN/3761682&RS=PN/3761682 |date=5 September 2017 }}; the application had been filed in October 1971. However, the U.S. patent record cites at least three previous applications from Docutel, all relevant to the development of the ATM and where Wetzel does not figure, namely [http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=3662343.PN.&OS=PN/3662343&RS=PN/3662343 US Patent # 3,662,343] {{Webarchive|url=https://web.archive.org/web/20170905230255/http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=3662343.PN.&OS=PN/3662343&RS=PN/3662343 |date=5 September 2017 }}, [http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=3651976.PN.&OS=PN/3651976&RS=PN/3651976 U.S. Patent # 3651976] {{Webarchive|url=https://web.archive.org/web/20170905184032/http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=3651976.PN.&OS=PN/3651976&RS=PN/3651976 |date=5 September 2017 }} and [http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=368569.PN.&OS=PN/368569&RS=PN/368569 U.S. Patent # 3,68,569] {{Webarchive|url=https://web.archive.org/web/20170905183830/http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=368569.PN.&OS=PN/368569&RS=PN/368569 |date=5 September 2017 }}. These patents are all credited to Kenneth S. Goldstein, MR Karecki, TR Barnes, GR Chastian and John D. White.
[[File:A person uses an ATM at Chase Bank, NYC - 2008.tif|thumb|A [[Chase Bank]] ATM in 2008]]

===Further advances===
In April 1971, [[Busicom]] began to manufacture ATMs based on the first commercial [[microprocessor]], the [[Intel 4004]]. Busicom manufactured these microprocessor-based automated teller machines for several buyers, with [[NCR Corporation]] as the main customer.<ref>{{cite journal |last1=Aspray |first1=W. |s2cid=15782735 |title=The Intel 4004 microprocessor: what constituted invention? |journal=IEEE Annals of the History of Computing |date=1997 |volume=19 |issue=3 |pages=4–15 |doi=10.1109/85.601727 |issn=1058-6180}}</ref>

[[Mohamed Atalla]] invented the first [[hardware security module]] (HSM),<ref name="Stiennon">{{cite web |last1=Stiennon |first1=Richard |title=Key Management a Fast Growing Space |url=https://securitycurrent.com/key-management-a-fast-growing-space/ |website=SecurityCurrent |publisher=IT-Harvest |access-date=21 August 2019 |date=17 June 2014}}</ref> dubbed the "Atalla Box", a security system which encrypted [[Personal identification number|PIN]] and ATM messages, and protected offline devices with an un-guessable PIN-generating key.<ref name="Lazo">{{cite book |last1=Bátiz-Lazo |first1=Bernardo |title=Cash and Dash: How ATMs and Computers Changed Banking |date=2018 |publisher=[[Oxford University Press]] |isbn=9780191085574 |pages=284 & 311 |url=https://books.google.com/books?id=rWhiDwAAQBAJ&pg=PA284}}</ref> In March 1972, Atalla filed {{US patent|3938091}} for his PIN verification system, which included an encoded [[card reader]] and described a system that utilized [[encryption]] techniques to assure telephone link security while entering personal ID information that was transmitted to a remote location for verification.<ref name="nist">{{cite web |title=The Economic Impacts of NIST's Data Encryption Standard (DES) Program |url=https://www.nist.gov/sites/default/files/documents/2017/05/09/report01-2.pdf |website=[[National Institute of Standards and Technology]] |publisher=[[United States Department of Commerce]] |date=October 2001 |access-date=21 August 2019 |archive-date=30 August 2017 |archive-url=https://web.archive.org/web/20170830020822/https://www.nist.gov/sites/default/files/documents/2017/05/09/report01-2.pdf |url-status=dead }}</ref>

He founded [[Atalla Corporation]] (now [[Utimaco Atalla]]) in 1972,<ref name="Langford">{{cite web |last1=Langford |first1=Susan |title=ATM Cash-out Attacks |url=https://h41382.www4.hpe.com/gfs-shared/20140318153228.pdf |archive-url=https://web.archive.org/web/20190821033406/https://h41382.www4.hpe.com/gfs-shared/20140318153228.pdf |archive-date=2019-08-21 |url-status=live |website=[[Hewlett Packard Enterprise]] |publisher=[[Hewlett-Packard]] |year=2013 |access-date=21 August 2019}}</ref> and commercially launched the "Atalla Box" in 1973.<ref name="Lazo"/> The product was released as the Identikey. It was a card reader and [[Identity verification service|customer identification system]], providing a terminal with [[plastic card]] and PIN capabilities. The Identikey system consisted of a card reader console, two customer [[PIN pad]]s, intelligent controller and built-in electronic interface package.<ref name="Computerworld1978">{{cite journal |title=ID System Designed as NCR 270 Upgrade |journal=[[Computerworld]] |date=13 February 1978 |volume=12 |issue=7 |page=49 |url=https://books.google.com/books?id=fB-Te8d5hO8C&pg=PA49 |publisher=IDG Enterprise}}</ref> The device consisted of two [[keypads]], one for the customer and one for the teller. It allowed the customer to type in a secret code, which is transformed by the device, using a microprocessor, into another code for the teller.<ref name="Computerworld1976">{{cite journal |title=Four Products for On-Line Transactions Unveiled |journal=[[Computerworld]] |date=26 January 1976 |volume=10 |issue=4 |page=3 |url=https://books.google.com/books?id=3u9H-xL4sZAC&pg=PA3 |publisher=IDG Enterprise}}</ref> During a [[Financial transaction|transaction]], the customer's [[Bank card number|account number was read by the card reader]]. This process replaced manual entry and avoided possible key stroke errors. It allowed users to replace traditional customer verification methods such as signature verification and test questions with a secure PIN system.<ref name="Computerworld1978"/> The success of the "Atalla Box" led to the wide adoption of hardware security modules in ATMs.<ref>{{cite book |last1=Bátiz-Lazo |first1=Bernardo |title=Cash and Dash: How ATMs and Computers Changed Banking |date=2018 |publisher=[[Oxford University Press]] |isbn=9780191085574 |page=311 |url=https://books.google.com/books?id=rWhiDwAAQBAJ&pg=PA311}}</ref> Its PIN verification process was similar to the later [[IBM 3624]].<ref>{{cite journal |last1=Konheim |first1=Alan G. |s2cid=1706990 |title=Automated teller machines: their history and authentication protocols |journal=Journal of Cryptographic Engineering |date=1 April 2016 |volume=6 |issue=1 |pages=1–29 |doi=10.1007/s13389-015-0104-3 |url=https://slideheaven.com/automated-teller-machines-their-history-and-authentication-protocols.html |issn=2190-8516 |access-date=22 July 2019 |archive-url=https://web.archive.org/web/20190722030759/https://slideheaven.com/automated-teller-machines-their-history-and-authentication-protocols.html |archive-date=22 July 2019 |url-status=dead |url-access=subscription }}</ref> Atalla's HSM products protect 250{{nbsp}}million [[Card Transaction Data|card transactions]] every day as of 2013,<ref name="Langford"/> and secure the majority of the world's ATM transactions as of 2014.<ref name="Stiennon"/>

The IBM 2984 was a modern ATM and came into use at Lloyds Bank, High Street, Brentwood, Essex, the UK in December 1972. The IBM 2984 was designed at the request of [[Lloyds Bank (historic)|Lloyds Bank]]. The 2984 Cash Issuing Terminal was a true ATM, similar in function to today's machines and named Cashpoint by Lloyds Bank. Cashpoint is still a [[registered trademark]] of Lloyds Bank plc in the UK<ref>{{Cite web |date=1986-10-01 |title=UK00001286879 |url=https://trademarks.ipo.gov.uk/ipo-tmcase/page/Results/1/UK00001286879 |access-date=2025-03-30 |website=[[Intellectual Property Office (United Kingdom)|Intellectual Property Office]]}}</ref> but is often used as a [[List of generic and genericized trademarks|generic trademark]] to refer to ATMs of all UK banks.<ref name=":1" /> All were online and issued a variable amount which was immediately deducted from the account. A small number of 2984s were supplied to a U.S. bank. A couple of well known historical models of ATMs include the [[Atalla Corporation|Atalla Box]],<ref name="Lazo"/> IBM 3614, [[IBM 3624]] and 473x series, [[Diebold 10xx]] and TABS 9000 series, NCR 1780 and earlier NCR 770 series.

The first switching system to enable shared automated teller machines between banks went into production operation on 3 February 1979, in Denver, Colorado, in an effort by Colorado National Bank of Denver and Kranzley and Company of Cherry Hill, New Jersey.<ref>personal knowledge of William Patterson who was there supporting the network {{self-published inline|date=June 2023|reason=Sorry William, I know it's a pain but we can't accept unpublished personal knowledge as a source on Wikipedia}}</ref>

In 2012, a new ATM at [[Royal Bank of Scotland]] allowed customers to withdraw cash up to £130 without a card by inputting a six-digit code requested through their smartphones.<ref>{{cite news |url=https://www.bbc.co.uk/news/business-18409560 |title=ATMs to operate without a card |date=12 June 2012 |work=BBC News |url-status=live |archive-url=https://web.archive.org/web/20120613035141/http://www.bbc.co.uk/news/business-18409560 |archive-date=13 June 2012  }}</ref>