ADDIS ABABA SCIENCE AND

TECHNOLOGY UNIVERSITY
COLLEGE OF ELECTRICAL AND MECHANICAL
ENGINEERING
DEPARTMENT OF MECHANICAL ENGINEERING

MECHATRONICS GROUP ASSIGNMENT 

On ATM Machines From a Mechatronics Point of View

Group Members
Abel G/Egziabher .................................................... ETS0026/13
Abenezer Habtamu………………………………………ETS0054/13
Natnael Zelalem ....................................................... ETS0533/12

Submitted to: Delbante A

Submission date: Monday, May/ 01/2023
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Introduction
Automated Teller Machines (ATMs) have become an integral part of modern society,
providing a convenient and efficient way for people to access their bank accounts and perform
financial transactions. However, the history of ATM machines dates back several decades, and the
development of this technology has been a gradual process. In this report, we will try to cover the
background of ATM machines, from their early beginnings to their current widespread use in our
day-to-day life.
The first ATM machine was developed in the late 1960s by a Scottish inventor named John
Shepherd-Barron. The machine, which was installed at a branch of Barclays Bank in London,
allowed customers to withdraw up to £10 at a time by inserting a special paper voucher into the
machine. This early version of the ATM machine was not connected to a network, and the vouchers
had to be pre-printed and distributed to customers in advance. Despite all of its short comings, this
invention paved the way for generations of alterations trying to improve the ATM for us to get the
technology we have today.
It wasn’t till decades later would we have the first networked ATM machines were
developed, allowing customers to access their bank accounts from any machine connected to the
network. This development was made possible by the creation of the magnetic stripe on bank cards,
which allowed the machines to read the customer's account information and verify their identity.
In the 2000s, ATM machines began to incorporate more advanced technology, such as touch
screens and biometric authentication. It was these leaps forward in the development of the
invention that allows us to group the ATM as a mechatronics system and include it in our report.

Applications
One of the most common applications of ATM machines is cash withdrawals. Customers
can use their bank card to withdraw cash from an ATM machine at any time of day or night,
without the need to visit a bank branch. This is particularly useful for people who need cash outside
of regular banking hours, or who live in areas where bank branches are not easily accessible.
Another application of ATM machines is depositing checks. Many ATM machines now
allow customers to deposit checks directly into their bank account, without the need to visit a bank
branch. This is a convenient option for people who receive checks but do not have the time or
ability to visit a bank during regular business hours.
ATM machines can also be used to transfer funds between accounts. Customers can use an
ATM machine to transfer money from one account to another, either within the same bank or
between different banks. This is a useful option for people who need to move money quickly and
easily, without the need to visit a bank branch.
In addition to traditional banking transactions, ATM machines can also be used for a
variety of other applications. For example, some ATM machines allow customers to purchase

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movie tickets, pay bills, or even buy stamps. This provides a convenient and efficient way for
people to complete these tasks without the need to visit multiple locations.
ATM machines can also be used for international transactions. Many ATM machines allow
customers to withdraw cash in foreign currencies, or to exchange currency at the current exchange
rate. This is a useful option for people who are traveling abroad and need access to local currency.
In conclusion, the applications of ATM machines are numerous and varied, providing a
convenient and efficient way for people to access their bank accounts and perform financial
transactions. From cash withdrawals to depositing checks, transferring funds, and even purchasing
movie tickets, ATM machines have become an essential part of modern society. As technology
continues to advance, we can expect to see even more innovative applications of ATM machines
in the future.

Installation Diagrams

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Basic Working Principle

The basic working principle of ATM machines is based on a combination of mechanical,
electronic, and software components. The mechanical components include the card reader, keypad,
and cash dispenser, while the electronic components include the computer system and sensors. The
software components include the operating system, user interface, and security protocols. This
delicate balance of components enables us to further analyze this system from a mechatronic point
of view.
The first step in using an ATM machine is to insert a bank card into the card reader. The
card reader reads the magnetic stripe on the back of the card, which contains an account
information. The machine then verifies the identity of the customer by prompting to enter their
Personal Identification Number (PIN).
Once the identity has been verified, then select the desired transaction on the machine's
keypad. This may include cash withdrawals, deposits, transfers, or other financial transactions.
The machine then communicates with the bank's computer system to process the transaction.
If customer is withdrawing cash, the machine will dispense the requested amount of cash
from its cash dispenser. The cash dispenser is a mechanical component of the ATM machine that
holds and dispenses cash. The machine will also provide a receipt for the transaction.
If depositing cash or checks, the machine will prompt to insert the cash or checks into a
designated slot. The machine will then verify the amount of the deposit and provide a receipt.

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Measurement system
▪ The ATM measures currency denominations in various units (dollars, euros, pound
sterling, etc.) that are loaded into its cash-dispensing tray.
▪ It may also measure transaction details such as account balances and withdrawal
amounts.
Working Principle:
1. Authentication: The user inserts their ATM card into the machine and enters a
unique personal identification number (PIN) to gain access to their account.

2. Transaction selection: The user selects the transaction type they wish to perform,
such as withdrawing cash, depositing money, or transferring funds.

3. Entry: The user enters the relevant information, such as the amount of money they
wish to withdraw or deposit.

4. Processing: The ATM verifies the user's information and processes the transaction
through its network connection to the user's banking institution.

5. Dispensing: If the user has requested cash withdrawal, the ATM dispenses the
correct amount from its cash tray.

6. Completion: The ATM provides the user with a receipt or confirmation of the
completed transaction.

❖ Overall, the measurement system and working principle of an ATM machine are
designed to provide secure and convenient banking services to customers around the
clock.

Sensing elements of an ATM machine

The sensing elements of an ATM (Automated Teller Machine) typically include:
1. Keypad: The keypad is the primary input device for users to enter their PIN and
other account information. The keypad is typically made up of plastic or metal
buttons that are spring-loaded to provide tactile feedback.

2. Card Reader: The card reader scans and reads the user's ATM card, providing
essential account information to the ATM system. The magnetic stripe on the ATM
card contains the user's account number and other relevant data.

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3. Display Screen: The display screen provides visual feedback to the user by
showing the various options available on the ATM, such as options for withdrawing
money or checking account balances.

4. Cash Dispenser: The cash dispenser is responsible for dispensing cash to the user
after a successful transaction. The cash dispenser includes sensors that detect
whether the correct amount of cash has been dispensed.

5. Printer: The printer produces receipts of transactions for the user's records. The
printer also includes sensors that detect whether the receipt has been correctly
printed and whether the paper roll needs to be replaced.

❖ Some of the key principles and characteristics of these sensing elements include
accuracy, reliability, speed, durability, and consistency. The sensors in each element must
be carefully calibrated to ensure that they work correctly every time. The materials used
must be able to withstand frequent use and normal wear and tear. Moreover, the sensing
elements should be designed to be easy to use, intuitive, and provide clear feedback to
users at all times to prevent errors, confusion, or frustration.

Actuation system
The actuation system of an ATM (Automated Teller Machine) is responsible for
performing various motorized functions involved in dispensing cash and completing a transaction.
▪ When a user inserts their ATM card, the card reader scans the card's magnetic stripe
and reads its information. The actuation system then uses a motor to move the card
into the machine and position it for use.

▪ When the user enters their PIN (personal identification number), the actuation
system again utilizes a motor to send the information to the card processor for
verification. If the PIN is correct, the actuation system will proceed to the next step.

▪ The actuation system will then dispense cash if requested. Here, the system uses a
motor-driven dispenser that retrieves and dispenses the correct number of bills as
specified by the user.

▪ Finally, the actuation system will retract the ATM card and complete the
transaction.

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Some of the key components of an ATM actuation system include:

• Dispenser mechanism: This is the component responsible for dispensing cash from the
ATM. It typically includes a series of cassettes containing different denominations of bills,
a transport mechanism to move the bills to the dispenser, and sensors to ensure that the
correct amount of cash is dispensed.

• Deposit mechanism: This component allows users to deposit cash or checks into the ATM.
It typically includes a slot for accepting deposits, sensors to detect the presence of cash or
checks, and mechanisms for feeding the deposited items into a secure storage area.

• Printer mechanism: This component is responsible for printing receipts or other documents
for the user. It typically includes a thermal printer, paper roll, and mechanisms for cutting
and ejecting the printed documents.

• Control system: This is the central component of the actuation system, responsible for
coordinating the various functions of the ATM. It includes a microprocessor, memory, and
software to control the various components of the machine.

The actuation system of an ATM machine is responsible for controlling the physical components
of the machine, such as the currency dispenser, receipt printer, and deposit slot. The basic working
principle of an actuation system in an ATM machine involves the use of electrical, mechanical, or
pneumatic mechanisms to perform specific actions in response to input from the user or the control
system.
Here are some examples of how different types of actuation systems are used in an ATM machine:
• Electrical actuation: In an ATM machine, electrical actuators are often used to control
components such as the currency dispenser or the receipt printer. Electrical actuators
convert electrical signals from the control system into mechanical motion, such as rotating
a motor or solenoid, to perform the desired action.

• Mechanical actuation: Mechanical actuators, such as gears, levers, and linkages, are also
commonly used in ATM machines. These actuators convert the motion of one component
into the motion of another component, such as opening and closing the deposit slot or
moving the currency transport mechanism.

• Pneumatic actuation: Pneumatic actuators use compressed air or other gases to perform
mechanical motion. In an ATM machine, pneumatic actuators may be used to control
components such as the cash dispenser or the deposit slot. For example, a pneumatic
actuator may be used to move a piston that dispenses currency or opens and closes the
deposit slot.

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References
• "Automated Teller Machines (ATMs): History, Functionality, and Future" by James
M. Lepak.

• "The Future of ATM Machines" by Joseph Kizza.

• "ATM Machines: Bank Headaches or Customer Convenience?" by John DeFeo.

• "ATM Networks: Principles and Use" by David E. Davenport.

• "Security of Self-Service Networks: Security Evaluation of ATM Machines and Other

Self-Service Banking Terminals" by Bernhard A. Tellenbach

Appendices ()

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