ATM (Automatic Teller Machine) – An Overview
An ATM, or Automatic Teller Machine, is a self-service device that allows bank customers to withdraw cash and check their bank accounts without needing a bank teller. This means customers can access their accounts at any ATM, regardless of their own bank’s location. Many ATMs also allow users to deposit money or transfer funds between accounts.
1: Insert card;
2: Follow prompts on the screen;
3: Cash will be dispensed.
Who Invented the ATM?
The debate over who invented the ATM is ongoing. Some credit it to Turkish inventor Luther George Simjian, while others believe it was Don Wetzel. There are also claims that John Shepherd-Barron was the true inventor. John D. White communicated with ATMmachine.com, presenting compelling arguments that John Shepherd-Barron was indeed the inventor of the ATM, and not Don Wetzel. Similarly, James Goodfellow from Scotland reached the same conclusion as White. Despite the confusion surrounding the invention timeline, it is clear that Shepherd-Barron was in the UK, Goodfellow in Scotland, while Wetzel and others were in the United States.
Luther George Simjian
In the 1930s, Luther George Simjian began developing an early version of the ATM, which was not very successful, but he did file for a patent. He was the first to conceive of a machine that could be installed in a wall for conducting financial transactions. His idea faced significant skepticism. Starting in 1939, Simjian registered 20 patents for his machine and convinced a bank, now known as Citicorp, to allow him a trial. However, after six months, the bank determined that demand was low.
John Shepherd-Barron
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| John Shepherd-Barron invented the cash dispenser in the 1960s (Image: BBC) |
In the 1960s, John Shepherd-Barron invented a cash dispenser while serving as the managing director of De La Rue Instruments. Today, De La Rue manufactures cash dispensers, although they produce only one-fifth of the machines worldwide. The first ATM was installed at a Barclays Bank branch in London, UK, in 1967. Shepherd-Barron later presented his product to 2,000 bank owners at a seminar in Miami. On December 31, 2004, Shepherd-Barron was awarded the Officer of the Order of the British Empire (OBE) by the Queen of the United Kingdom.
James Goodfellow
James Goodfellow, a development engineer at Smiths Industries Ltd, proposed the development of an automatic cash dispenser in 1965. Chubb Lock & Safe Co. was responsible for producing the secure storage devices and machinery for ATMs. Goodfellow designed a system that could accept cards readable by the machine, incorporating a numerical keypad. His invention was granted UK patent number 1,197,183 on May 2, 1966, as well as US patent number 3,905,461, and was protected in several other countries. Goodfellow’s US patent still describes the functionality of ATMs nearly 40 years later. These machines were marketed by Chubb Ltd and distributed throughout the UK in the 1960s and early 1970s. For more details, read about ATM inventor James Goodfellow’s story here on ATMmachine.com.
Don Wetzel, Tom Barnes, and George Chastain
In 1968, during an interview with the National Museum of American History (NMAH), Don Wetzel, the Product Planning Vice President at Docutel, a company that developed automated baggage handling machines, stated that he had secured a patent for the ATM along with two colleagues, mechanical engineer Tom Barnes and electrical engineer George Chastain. Wetzel invested $5 million to develop their ATM.
John D. White
John D. White stated on ATMmachine.com that his work began in 1968. He claimed that the first ATM was installed at Rockville Center, Long Island, and later at Chemical Bank in August 1973. His design was patented on May 9, 1973, for Docutel Corporation. The machine was named “Credit Card Automatic Currency Dispenser.” White provided the patent documentation signed by himself and Kenneth Goldstein from Docutel Corporation. His machine resembled modern ATMs, meaning that “both original and updated codes were encrypted to prevent theft“, similar to today’s machines. The ATM was programmed with security keys, with codes changed regularly to prevent credit card fraud.
The Battle for Recognition
The award to John Shepherd-Barron did not sit well with James Goodfellow. He recounted that he was tasked with the automatic cash dispenser project and envisioned various security measures for customer safety, including finger recognition, voice recognition, and biometric systems. Goodfellow asserted that he was the true author of the concept of the encrypted card, thanks to a unique code.
In response, John Shepherd-Barron claimed he had never heard of James Goodfellow and reiterated that he was the first to develop a cash dispenser that operated using magnetic checks encoded with radioactive carbon-14.
