The inside of an ATM.

ATMs perform some pretty sophisticated functions — encrypted confirmation of account balances and access privileges, followed by handing out cash. But at heart they’re fairly simple machines: a computer, a card reader, a safe, and a cash dispenser. The complexity lies mostly in the software and physical security.

If you’ve ever wanted to see what lies inside an ATMs armored case, this “How Stuff Works” video takes you there. The machine they show is a big “through the wall” bank ATM. But non-bank ATMs work similarly — they’re just smaller, hold less cash, and typically open from the front rather than the back.

After watching the video, flip through the other pages in the article. Page 3 describes how ATMs contact the processing network. Page 4 walks you through the parts of the ATM interface.

What most people don’t think about is, “how does the machine make sure it dispenses the right amount of money?” The answer is severalfold: programming that tells the ATM what denominations are in which dispensers, a sensitive bill-mover that makes sure only one bill is dispensed at a time, and an electronic eye that counts the bills as they are dispensed.

Finally, how does the ATM owner get reimbursed for the cash you take out of their machine? Through electronic fund transfers between your bank and theirs.

As you can see, there’s a lot that goes on behind the scenes just so you can have access to cash whenever you need it.

Expert Group, Inc. announced today that it will deploy the region’s first solar-powered ATM. The ATMs will be installed throughout Miami in high traffic outdoor areas, said Robert Rico, Chairmen of Expert Financing, Inc.

The ATMs are powered by solar panels installed on the top of the ATM. The panels are connected to a circuit breaker board, which feeds a power controller. Part of the collected energy is stored in the power controller for the ATM’s night operation.

The city of Miami has been encouraging businesses to use solar power where possible. Unlike earlier efforts that had some bugs to work out, Expert Group — which does business as Expert Financing — is confident that their machines won’t get overloaded when they get drenched with sunshine.

“We are planning to put 100 solar-powered ATMs in various areas in Miami in the near future,” Rico said. “The wonderful thing about these machines is that they are not costly and will provide our customers with the chance to contribute to helping the environment.”

Okay, it’s more of a vending machine than an ATM, but if you don’t like paper currency, this machine is for you:

Abu Dhabi’s Emirates Palace Hotel became the first place outside Germany to install “gold to go, the world’s first gold vending machine,” said a statement from Ex Oriente Lux AG, the German company behind the vending machine.

“In addition to one-gram, five-gram and 10-gram bars of gold, the machine also dispenses gold coins,” it added.

Not only does the machine dispense gold, it’s also gold-plated. But that doesn’t mean it’s low-tech: it constantly monitors the gold markets and adjusts its prices accordingly.

But don’t expect to see one on your street corner anytime soon. The Emirates Palace Hotel is not your normal business location:

The Emirates Palace is often used by visiting foreign dignitaries, and its top floor is reserved for the rulers of the UAE federation’s seven emirates, each of whom has his own suite.

High-end, indeed.

The machines were first installed in some German airports last year.

And talk about security:

“The Gold To Go vending machine will fulfill the same safety standard as an ATM,” said Uwe Heusel, owner of WBA Heusel GmbH. His company used armoring made of special steel, Kevlar and various ceramic materials to harden the vending machine against vandalism or even explosive blasts.

Tax time can be a headache for many small business owners. It’s not just that business tax rules can be confusing and arbitrary. Spring is the time when you have to go through a year’s worth of saved receipts and paperwork, trying to find a specific number or form, and hoping you didn’t accidentally throw out or misfile an important piece of paper.

At ATM Network, we understand this very well. Every year at this time we get a lot of calls from our customers. Usually it’s because their accountant needs to know how much money they made on their ATMs last year, and they didn’t save all the monthly statements we sent them with their checks.

It’s an even bigger headache for people who own a lot of ATMs. Someone with 80 machines has to keep track of — and add up — nearly 1,000 different monthly statements. The headache can be enormous.

Then there are the checks themselves. Paper checks can get lost, stolen or damaged. They take days to arrive. And machine owners have to take them to the bank, physically endorse them and deposit them.

At the end of 2009, ATM Network took a big step toward making things easier for customers by switching from paper checks to electronic payments. Customer profits are deposited directly in their bank account — automatically, without risk, and usually 10 days or so earlier than with paper checks.

Now ATM Network has taken the next step with Webstatements, its online statement archive.

Instead of receiving and storing a paper statement, customers can login to their Webstatements account to view their machine’s financial results.

They can see total activity for all of their machines, or view each machine individually. They can sort results by month and year. And if they do want paper copies, they can print out individual statements for all of their machines with a single click of the mouse.

The online statements contain all the information that used to be on ATM Network’s paper statements: profit information, daily activity, network activity, and more. So it’s easy to see at a glance how a machine is being used and how profitable it is.

Webstatements works in conjunction with ATM Portal, an online reporting service that tracks up-to-the-minute activity and keeps track of daily operating items like how much cash remains in each machine. ATM Portal provides daily reporting; Webstatements provides monthly summaries, as well as customer-specific financial information unavailable through ATM Portal.

It’s just one more way that ATM Network provides its partners with top-of-the-line service and accountability.

Here’s a cool application that could mean more traffic for your ATM:

MasterCard Worldwide has announced the launch of the MasterCard ATM Hunter application for BlackBerry smartphones that allows users to easily locate the nearest ATM no matter where in the world they are.

The application first came out for iPhones, and is now available for Blackberries. It uses uses GPS technology to show users the nearest ATMs. They can sort by things like surcharge and accessibility (wheelchair, drive-up, 24-hour) and then get directions.

If the phone doesn’t have GPS-capabilities, users can consult a database of ATMs to find one near them.

There’s even an online version for those of us playing at home.

The application is free. You can download it from the iPhone App Store or Blackberry’s AppWorld.

Great prices. Great selection. Great service. Straightforward pricing and ongoing customer support.

Those are the principles that ATM Network was founded on 14 years ago. Those are the principles that have made us one of the largest and most successful ATM companies in the country. And those principles drove the design and construction of ATM Network’s new online store, now open at http://www.atmnetwork.net/store.

Naturally, you’ll find all the things you expect from an online store. Compare features and prices on ATMs from major manufacturers like Nautilus Hyosung, Triton and Hantle USA (formerly Tranax). Build your own ATM, adding only the features you want. Browse our selection of parts, supplies and accessories. Taxes and shipping are calculated automatically based on your shipping address. When you’re ready, buy your selections using our secure checkout system.

But we didn’t stop there. Here are some things you’ll get from us that you won’t see at our competitors:

1. Transparent pricing. Add an item to your shopping cart, and you’ll immediately see your tax and shipping charges. Too many stores try to hide that from you until your purchase is nearly complete. You can also change your shipping options at any time to see what each option costs.

2. Free shipping, processing and sign package with every ATM. Every ATM includes free shipping anywhere in the continental United States, free transaction processing, and a free sign package, including a colorful door sticker and a neon sign to advertise your ATM.

3. Custom options. Want your own customized ad screens? We can make them for you. Want to advertise or print coupons on your customers’ receipts? We can do that, too.

4. Upgrades. We can take a dial-up machine and let it hook into your Internet connection. We can take any machine and equip it to use a wireless connection, freeing you from phone lines and Ethernet cables.

5. Paper in any quantity. Most online retailers require you to buy rolls of receipt paper by the case. Who needs that? With us, you can buy paper in any quantity you want, from one roll to multiple cases.

6. Merchant services. We’re not just an ATM company. We offer a full range of merchant services, including free check-collection and low-fee credit-card processing.

As a full-service ATM company, we also deliver extras that the wholesalers can’t match. When you buy from us you get more than just a hunk of machinery. You get a nationwide installation, training and service network. You get 24/7 customer support. You get free transaction processing. You get free online monitoring and management of your machine and your income statements.

Come visit our site to learn more about us, and our store to see what we have to offer. Then you’ll understand why so many ATM owners choose ATM Network as their partner.

Visit us at http://atmnetwork.net/store.

Nautilus Hyosung has developed software that will let ATMs sell Quick Pick lottery tickets.

Nautilus Hyosung America Inc. has partnered with Linq 3 to enable the purchase of quick pick lottery tickets on Nautilus Hyosung’s CE ATM models. Nautilus has been developing the software application for the CE models and will demonstrate the quick pick functionality during next week’s ATM Industry Association conference in Miami.

Linq3 developed the secure links to state lottery commissions that makes the whole thing work.

The software will work on any Hyosung machine running Windows CE. That includes the 1800CE and 5000CE.

All new CE models will ship with the software, and already-installed machines can get a software update to run it.

A while back we wrote about the design and usage considerations that went into creating touch screens for Wells Fargo ATMs.

Here’s another one, involving Bank of America. It appears to have been a much less intensive process than the Wells Fargo effort.

The ATM business group approached our team to improve the existing web-enabled touch screen ATM user interface and interaction flow. The business goals included increasing ATM preferences usage, reducing transaction time and increasing customer satisfaction.

After initial assessment of the existing application using heuristic evaluations and
in-context customer observations, several design guidelines were established to guide the project:
1. Limit one clear interaction or customer action per screen
2. Use clear and concise language
3. Use a consistent grid for button placement
4. Move all interaction to touch screen when possible (example, keypad entry)
5. Improve visual and auditory feedback cues when the customer interacts with the application.

They came up with a couple of designs before settling on the final look (above).

Now a bank in Mumbai, India is giving it a try.

A private sector bank launched the city’s first solar energy-powered ATM at its Opera House branch on Friday. The machine is expected to work on solar energy for at least eight hours a day. Through this green initiative, the bank will be able to save around 1,980 kilowatt hours of energy every year and reduce carbon dioxide emissions by 1,912 kg per year, a bank representative said.

The ATM has been fixed with large solar panels powered by eight photovoltaic cells mounted on the bank’s building. “The panels harness sunlight and turn it into electricity. Electricity is stored in batteries located within the building which will be used to power the ATM,” a bank official said. The ATM will enable the bank to save around Rs 20,000 per year.

20,000 Indian rupees is about $428.

With ATMs now so common that they’re part of the landscape, they’ve finally reached the level of platform: a reliable, familiar technology that serves as the launching pad for additional services.

Case in point: payroll cards.

Payroll cards are an alternative to paychecks. Instead of giving employees a paper check, or electronically depositing their pay in a bank account, the employer loads the value of the check on to a debit card. The employee can then use the card for cash or shopping.

Employers like them because they eliminate the need for paper checks. And since payroll cards can act like credit cards and don’t require employees to have a bank account, they’re very popular with lower-income workers, people who have poor credit, or any worker who for whatever reason can’t or won’t get a bank account or credit card.

Government is getting in on the act, too: many states provide food stamps and other welfare benefits using a card, so-called Electronic Benefits Transfer (EBT).

Jim Penza is president of ATM manufacturer WRG, a company that started life in the vending business before moving into cash machines. He wrote an article for the November issue of Playmeter magazine specifically about payroll cards and what it will mean for the ATM industry. Key excerpts:

ATMs are not just for convenience anymore…they are becoming a necessity. Why? More and more people receive their monthly income via debit cards. The need to access these funds is what drives transaction revenue for ATM owners and operators….

More than 20 states have launched pre-paid debit card programs for child support payments. In fact, over a dozen states—including Georgia, Iowa, Michigan, New York and Virginia—have made it mandatory for child support disbursement to be made via debit card and direct deposit….

Wireless telephone companies, such as AT&T and Alltel, issue rebates in the form of debit cards….

The future of the ATM industry lies not only in the customer who needs fast cash to make a purchase, but also the person who needs the ATM to access their monthly income….

Payroll card programs are becoming increasingly popular among retailers who view it as a cost saving tactic. In August of this year, Wal-Mart employees who declined direct deposit received their earnings in the form of a MasterCard debit card….

What does this mean for ATM owners? It means they’re increasingly part of a complex financial network that will draw in customers. ATMs won’t just attract people looking for quick cash. They’ll attract people who need access to their paycheck. In the past, many such people would go to check-cashing businesses and pay a hefty fee. If your ATM is convenient, reasonably surcharged and well advertised, they’ll now come to you instead. They get more convenience at a lower cost; you’ll collect increased surcharge revenue as well as boosting sales in your store.