What is an ATM?

An ATM (Automated Teller Machine) is a self-service banking terminal that lets you withdraw cash, check your balance, and perform other basic banking tasks 24/7 without visiting a bank branch.

Simply insert your debit card, enter your PIN, and select the transaction you need—it's that simple.

Why ATMs changed banking forever

Remember when banking meant waiting in long lines during business hours? ATMs revolutionized how we access our money by putting banking power literally at our fingertips, anytime, anywhere.

Today, there are over 3 million ATMs worldwide, making them one of the most convenient ways to manage your everyday banking needs.

Whether you're grabbing cash for a farmers market or checking your balance before a purchase.

How ATMs actually work

When you use an ATM, a sophisticated process happens in seconds:

Step 1: Card Authentication
Your card's magnetic stripe or chip contains your account information. When inserted, the ATM reads this data and connects to your bank's network.

Step 2: PIN Verification
Your Personal Identification Number (PIN) acts as your digital signature. The ATM encrypts this code and verifies it with your bank to confirm you're the authorized account holder.

Step 3: Transaction Processing
Once authenticated, you select your transaction. The ATM communicates with your bank's computer system to verify you have sufficient funds and processes your request.

Step 4: Dispensing Cash
For withdrawals, the ATM's internal mechanism counts and dispenses your cash from secure cassettes, while simultaneously updating your account balance.

The entire process uses multiple layers of encryption to keep your information secure—the same technology that protects online banking.

What you can do at an ATM

Modern ATMs offer much more than cash withdrawals:

• Check account balances for your chequing and savings accounts

• Deposit cash and cheques directly into your account

• Transfer money between your linked accounts

• Pay bills to registered payees

• Print mini statements showing recent transactions

• Change your PIN for added security

• Purchase prepaid phone credits at select machines

• Access foreign currency at international or airport ATMs

Pro tip: Not all ATMs offer every service. Machines at your bank's branch typically have more features than standalone ATMs at convenience stores.

Understanding ATM fees

In-Network ATMs (Your Bank's Machines)
Most banks offer unlimited free withdrawals at their own ATMs. With KOHO, you get access to thousands of fee-free ATMs across Canada through our network partners.

Out-of-Network ATMs (Other Banks' Machines)
Using another bank's ATM usually comes with two potential fees:

• The ATM operator's surcharge ($2-$4)

• Your own bank's out-of-network fee ($1.50-$5)

These fees can add up quickly—$5 per transaction means $20 monthly if you withdraw cash weekly.

International ATM Fees
When traveling abroad, expect:

• Foreign transaction fees (2.5-3.5% of the withdrawal)

• Currency conversion markup

• Local operator fees

• Your bank's international withdrawal fee

Smart Strategy: Plan your withdrawals to minimize fees. Take out larger amounts less frequently from in-network ATMs.

How to find ATMs near you

Mobile Banking Apps
Your bank's app typically includes an ATM locator with filters for specific services (deposits, 24-hour access, wheelchair accessible).

Google Maps
Search "ATM near me" for immediate results with directions, hours, and user reviews.

ATM Network Websites
Networks like Interac or your card network (Visa, Mastercard) maintain searchable ATM directories.

Look for These Common Locations:

• Bank branches and lobbies

• Shopping malls and retail centers

• Gas stations and convenience stores

• Airports and transit stations

• Hotels and entertainment venues

• University campuses

Staying safe

Your safety and account security matter.

Follow these essential guidelines:

• Use ATMs in well-lit, high-traffic areas whenever possible

• Avoid machines in isolated locations, especially at night

• Check for anything unusual attached to the card reader or keypad (skimming devices)

During Your Transaction:

• Shield the keypad with your hand when entering your PIN

• Don't accept "help" from strangers hovering nearby

• Cancel the transaction if anything feels wrong

• Take all receipts—never leave them behind

After Your Withdrawal:

• Put your cash away immediately, before leaving the ATM

• Check your surroundings before walking away

• Monitor your account regularly for unauthorized transactions

• Report lost or stolen cards immediately

Red Flags That Signal a Compromised ATM:

• Loose or oddly positioned card readers

• Keypads that feel different or stick

• Cameras pointed at the keypad

• Distraction tactics from people nearby

Making ATMs work smarter for your financial goals

ATMs aren't just about convenience—they're tools for better money management:

Track Spending in Real-Time
Use ATMs to check your balance before making purchases. This simple habit prevents overdrafts and keeps you aware of your financial position.

Stick to Cash Budgets
Withdraw your weekly spending allowance in cash. The physical act of handing over bills makes you more conscious of expenses than swiping cards.

Maximize Fee-Free Withdrawals
Plan your cash needs and withdraw from in-network ATMs only. Those saved fees add up to hundreds of dollars annually.

Use Deposit Features
Modern ATMs accept deposits 24/7, unlike bank tellers. Deposit paycheques immediately instead of waiting for branch hours, getting faster access to your funds.

The future is here

ATM technology continues advancing beyond simple cash dispensing:

• Cardless transactions using smartphone apps and QR codes

• Biometric authentication with fingerprint and facial recognition

• Video teller services connecting you to live bankers through the screen

• Cryptocurrency capabilities at select Bitcoin ATMs

• Personalized interfaces that remember your common transactions

• Enhanced accessibility with audio guidance and tactile features

These innovations make banking faster, more secure, and more accessible for everyone.