Banking Automated Teller Machines (ATM's) general knowledge quiz

An automated teller machines (ATM)’s are electronic banking outlets that allow customers to complete basic transactions without the aid of a branch representative or teller. … Fees are commonly charged for cash withdrawals by the bank where the account is located, by the operator of the ATM, or by both. Or are they? Answer these 35 Questions to see how much you really know about ATM’s and what goes into making them work
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1. How does the Card reader receive information from the ATM card?

from the magnetic strip on the back of the card

From the first 8 Digits embossed on the front of the Card

From the 16 Digit number embossed number on the front of the Card

From the Name, Number and Expiry date printed on the Card

2. What is the first step an ATM performs, after the customer has inserted their card, but before accepting further keypad instructions

An offline authorization query to determine whether the ATM is ready to accept instructions

An Electronic Funds Transfer (EFT) Status query to determine whether the ATM is Online

A Bank Routing Number Query (used To identify the financial institution)

Card authentication, as a means of validating whether the Card is the genuine Card issued by the issuer

3. What does the term ATM Interchange Fee refer to?

Fees associated withdrawing money from an ATM

The fee paid to the Acquirer Bank, by the Issuer Bank for the ATM Transaction

The fee paid to the Issuer Bank, by the Acquirer Bank for the ATM Transaction

The fee charged by Visa or MasterCard for ATM withdrawals

4. In an RTGS environment, each bank is required to have single gateway interface called a __________

Participant interface (PI)

Bank Interface(BI)

Institutional interface(II)

Participant gateway(PG)

5. An ATM is a Card acceptance device. True or False

TRUE

FALSE

False. Any bank issued electronic payment device carrying bank branding is a Payment Acceptance device

False. A POS is a card acceptance device

6. An ATM’s cash dispenser has an electronic eye and sensor. The eye counts the banknotes. What does the sensor do?

It captures a picture of each banknote leaving the ATM

It checks the note count for accuracy

It scans notes for signs of counterfeiting

It identifies old notes or notes stuck together

7. Which among the following decriptions of On-site and Off-Site ATMs is/are INCORRECT?

ATM’s installed within the premises of Bank or Branch

Off-Site ATM’s are not connected to any ATM network

Off-Site ATMs transactions are restricted to the ATM’s Branch and Link branches only

ATMs not connected to bank’s database

8. An RTGS (‘Real Time Gross Settlement’) system refers to payments in which…

Both processing and final settlement of funds transfer instruction take place continuously

Final transaction processing takes place at the end of each business day

Payment is physically effected within 24 hours

None of the Above

9. Choose the statement(s) that best describe an ONLINE ATM

ATMs connected to the bank’s database at all times that provide real time transactions, online

ATMs where the withdrawal limits and account balances are constantly monitored by the bank

An ATM, where the withdrawal limits and account balances are remotely monitored by the bank

An ATM connected to the bank’s centralised banking systems, at all times which provide real-time transactions, online

10. The confidential individual number or code used by a Cardholder to authenticate Card ownership for ATM or POS terminal transactions is called a

PIN (Personal Interaction Number)

PIN (Protect, Identify Name)

PIN (Personal Identification Number)

PIN (Place Instructions Now)

11. In what way is a host processor and an Internet service provider (ISP) similar?

They both offer cash incentives for customers

They both serve as a gateway to a data network

They both allow international telephonic communications

They are both owned by large corporations

12. An ATM Interchange Fee is

A fee paid between banks for the acceptance of card-based transactions used at a different Banks ATM

A fee paid between Card Schemes for the acceptance of card-based transactions on any Banks ATM

A fee charged to customers for using credit cards in another country on an ATM not on the banks network

A tax paid to the government

13. What is the function of a PIN Pad on the ATM machine

It is the electronic system that processes financial data and transmits that to a computer or authorization network

It is the Tamper Resistant Security Module that enables a Cardholder to input details and preferences

It is the set of parameters defined by the issuer and managed by the ATM, used to trigger a request for account parameter information

It is the set of instructions and procedures used for the transfer of ownership and settlement of obligations arising from the exchange of goods and services

14. When you perform a Financial Transaction at an ATM, how is the money moved?

Manually, by the teller

As an ETF Transaction

By means of an armed guards and a truck

Through the Reserve Interbank Settlement Assocation

15. ATM stands for

Automated or Automatic Teller Machine

Automatic Telling Machine

Automatic Taking Machine

Absolutely Terrifying Machine

16. What does “Real-Time” refer to when used in an RTGS context?

Funds will eventually be transmitted to the beneficiary account

Funds are settled in batches

Funds are settled as soon as initiated

Funds are settled within 24 hours or next business day

17. Which of the following type of risk is NOT managed by an RTGS system

Operational risk

Settlement risk

Systematic risk

Financial Risk

18. Which parts of the ATM do customers usually interact with in the course of transaction

The Display Screen (used by the customer for performing the transaction)

The Function key buttons (usually close to the display) or touchscreen (used to select the various aspects of the transaction)

The Printer (to provide the customer with a record of the transaction)

All of the Above

19. The term ‘White Label’, when applied to ATM’s refers to

ATMs owned and operated by Non-Bank entity with minimum net worth of $1 million licensed to operate heavy machinery such as ATM’s

ATM’s owned bya Bank, with white Screens and very little branding

ATM’s that do not operate under a Bank brand, but managed and operated by a Third-Party (non-bank)

ATM’s belonging to non-banks, given special permission by the Regulatory Authorities to operate them on behalf of private banks

20. Choose the statement that best describe an OFFLINE ATM

An ATM where customers can withdraw any amount, regardless of their balance, up to their predefined withdrawal limit

An ATMs NOT connected to bank’s database (hence the fixed, predefined withdrawal limit)

An ATM where the withdrawal limits and account balances are monitored by the bank, 24X7 and adjusted in real-time

An ATM unable to connect to the host processor or bank systems

21. Why does an ATM record the number of rejected bills?

To determine if the ATM is causing problems. A high reject rate might indicate, for example, a bill-loading problem

Because the bank gets points for minimal rejects from the Regulator

Because a record of this must be kept with the Regulatory Authority in accorance with the Banks Act

To determine if the customer is defrauding the bank because a high reject rate might indicate, for example, money laundering

22. Until the ATM receives an approval code, what can’t it do?

Allow you to swipe your Card again

Release the cash you’ve requested

Read the keypad keys that you’ve pressed

Return your card

23. Which of the following ATM components provides auditory feedback when a key is pressed?

The cash dispenser

The speaker

The display screen

The CPU

24. An ATM is typically made up of which of the following devices?

A CPU (to control the user interface and transaction devices)

A Magnetic or chip Card reader (to identify the customer)

A PIN pad (similar in layout to touch tone or calculator keypad)

All of the Above

25. What is name of the ISO standard most commonly used by ATM’s to send and receive instructions?

ISO-90837

ISO-1010101

ISO-8583

ISO-B4422

26. By installing fake Card slots, or even extra attachments (called “skimmers”) on top of the existing Card slot, scammers can read the information on cards’ magnetic strips. Why?

This can help fraudster make fake duplicate cards for use in other ATMs

This can help fraudsters read your address from the Magnetic Strip on the back of your card

This can help fraudsters obtain access to your account using your Card details, without your knowledge

All of the Above

27. What is the medium through which an ATM connects to the host processor?

Cardholder

Merchant-owned machine

Modem

All of the Above

28. Which of the following authentication method is used in ATMs?

2FA

DFA

WTF

29. Which of the following facility is ONLY available only at a White Label ATM?

A Cash Deposit to a current account

A Regular Bill Payment Instruction

The purchase of re-loadable vouchers for Mobile phones

A Pin Change

30. In a typical ‘ATM’ day which of the following message exchanges would one expect to see? (Select all that apply)

ATM receives x800 to start and request the encryption key (Master Key Exchange)

ATM sends X100 messages for Balance Inquiries and X200 messages for cash withdrawal, over the course of the day

ATM receives X600 messages to check the total Cash Value available during the day, and an X500 reconciliation message at the end of the day, containing the total daily activity

None of the Above