2 days ago
- Cash usage is declining in the US, replaced by cards and electronic payments, but cash remains amenable to automation.
- Early banking automation involved punched card machines and posting machines to handle increasing transaction volumes.
- Bank of America's ERMA system (1959) automated check processing using MICR technology, setting standards for modern checks.
- IBM's early ATMs were token-based, requiring customers to obtain tokens from tellers during business hours.
- IBM's 2984 Cash Issuing Terminal (1972) introduced online PIN verification and encrypted communications, using the LUCIFER algorithm that evolved into DES.
- The IBM 3614/3624 Consumer Transaction Facilities (late 1970s) established features like PIN offset algorithms, envelope deposits, and receipt printers.
- IBM's later 473x Personal Banking Machines failed due to incompatibility with existing systems, leading to the InterBold joint venture with Diebold.