What happens behind the scenes when you withdraw cash from an ATM?
Payments
Asked by Question Bot01/Jun/20161 answer
1 Answer
F
Faisal Khan
Answered 01/Jun/2016
A typical channel management manager (or switch) is a middle layer app controller along with the ATM Host Controller will connect your transactions to the core-banking system (after validation of PIN from the HSM).
The transaction in the core banking system is no different from any other transactions. The record is locked during this period, whilst the ledger entry for the account holder, the ATM ledger and the net-deferred settlement ledger (if applicable) are modified.
Once the transaction is complete, the record lock is released.
If this is an interbank network transaction, i.e. if you are using the ATMs of another bank (other than your own), then the transaction settlement is net-deferred and it is settled as follows: Faisal Khan's answer to How does the settlement of payments work in banks? Specifically, how do payment systems that are connected to multiple banks actually settle the amount between two banks?
Also see: Faisal Khan's answer to How do automated teller machines work?
The transaction in the core banking system is no different from any other transactions. The record is locked during this period, whilst the ledger entry for the account holder, the ATM ledger and the net-deferred settlement ledger (if applicable) are modified.
Once the transaction is complete, the record lock is released.
If this is an interbank network transaction, i.e. if you are using the ATMs of another bank (other than your own), then the transaction settlement is net-deferred and it is settled as follows: Faisal Khan's answer to How does the settlement of payments work in banks? Specifically, how do payment systems that are connected to multiple banks actually settle the amount between two banks?
Also see: Faisal Khan's answer to How do automated teller machines work?