Finance glossary
ATM — Automated Teller Machine
Also known as: Cash machine, Cashpoint
In simple terms
An ATM is a cash machine — a self-service device where you use your card and PIN to withdraw cash, check your balance and carry out some basic banking.
On this page
What does ATM mean?
An Automated Teller Machine (ATM), or cash machine, lets you carry out basic banking with your card and PIN — most commonly withdrawing cash, but also checking balances and sometimes paying in or topping up.
Most cash machines in the UK are free to use, though some independent ones charge a fee.
How an ATM works
You insert your card, enter your PIN, and choose a service. The machine communicates with your bank to authorise the withdrawal and dispenses the cash, updating your balance.
Daily withdrawal limits apply, set by your bank and sometimes the machine.
How could this affect me?
ATMs are convenient, but be alert to fraud — shield your PIN, check for anything unusual attached to the machine (“skimming” devices), and use machines in safe, well-lit locations.
Fee-charging machines must display the charge before you commit, so you can choose a free one instead.
Things to watch out for
- Shield your PIN and check the machine for tampering or skimmers.
- Some independent ATMs charge a fee — it must be shown before you withdraw.
- Daily withdrawal limits apply.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- MoneyHelper, Banking basics (opens in a new tab). Accessed 22 Aug 2026.