ANALYSIS OF AN AUTOMATED TELLER MACHINE (ATM) SYSTEM byBayezidur Rashid PatwaryID: 0020142An Internship Report Presented in Partial Fulfillmentof

the Requirements for the DegreeBachelor of ScienceinComputer ScienceINDEPENDENT UNIVERSITY, BANGLADESHDecember 2004

InternshipANALYSIS SYSTEMbyBayezidur

OF Rashid

AN

AUTOMATED

TELLER been

MACHINE

(ATM)

PatwaryID: S.

0020142has J.

approvedDecember of

2004________________________Mr.

AhmedLecturerSchool

CommunicationIndependent University, Bangladesh

iii ABSTRACTThis report attempts to understand the design of an Automated Teller Machine (ATM)system, a device used by bank customers to process account transactions. Typically, auser inserts into the ATM a special plastic card that is encoded with information on amagnetic strip. The strip contains an identification code that is transmitted to thebank's central computer by modem. To prevent unauthorized transactions, a personalidentification number (PIN) must also be entered by the user using a keypad. Thecomputer then permits the ATM to complete the transaction; most machines candispense cash, accept deposits, transfer funds, and provide information on accountbalances. Banks have formed cooperative, nationwide networks so that a customer of one bank can use an ATM of another for cash access. Some ATMs will also acceptcredit cards for cash advances. The first ATM was installed in 1969 by ChemicalBank at its branch in Rockville Centre, New York. A customer using a coded cardwas dispensed a package containing a set sum of money.

iv ACKNOWLEDGMENTSThis is my humble attempt to present gratitude in preparing this report. I have trulydrawn upon my own experience as a student of computer science. This project wouldnot have been possible without the dedications and contributions of a number of individuals.First and foremost, I would like to express my gratitude to Mr. S. J. Ahmed foragreeing to supervise me during the internship project. His eagerness helped me inevery step of the way and encouraged me to propel myself higher.Then I want to show my gratefulness to the staffs of Premier Bank specially Mr.Mahbubur Rahman and Mr. Nurul Fattah for their continuous and cordial supportduring my internship.Lastly, I thank to Independent University,

Bangladesh for providing me with suchopportunities to work and gain experience of the professional field and writing formalreport like this.

TABLE OF CONTENTSPageLIST OF FIGURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viiCHAPTER1 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 Overview of Internship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 Origin of the Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.3 Organization Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 OBJECTIVE AND METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . 62.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.2 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 REQUIREMENT SPECIFICATION . . . . . . . . . . . . . . . . . . . . . . . 103.1 Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103.2 Functional Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.3 Non-functional Requirements . . . . . . . . . . . . . . . . . . . . . . . . 114 FEASIBILITY REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124.1 Technical Feasibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124.2 Economic Feasibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124.3 Operational Feasibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 PROCESS MODELING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145.1 Context Level DFD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145.2 System Diagram or Diagram 0 . . . . . . . . . . . . . . . . . . . . . . . 16

vi CHAPTER Page6 FLOW CHART . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 TESTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

vii LIST OF FIGURESFigure Page1. Gantt chart for Project Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62. Context diagram of Automated Teller Machine (ATM) system . . . . . . . . . 143. System diagram of Automated Teller Machine (ATM) system . . . . . . . . . 174. Flow chart of PIN validation procedure . . . . . . . . . . . . . . . . . . . . . . . . . . 245. Flow chart of Customer services procedure . . . . . . . . . . . . . . . . . . . . . . . 25

CHAPTER 1INTRODUCTION1.1 Overview of Internship

Internship refers to the employment of students nearing under-graduation in firms ororganizations, which operate on activities related to the respective students majorsubjects. The course, CSC 499 is a compulsory subject offered by IndependentUniversity, Bangladesh (IUB) with the objective of enabling students to come intocontact with real life applications regarding the knowledge and skills gained in boththeoretical and practical courses of the university. The core courses of ComputerScience offered by IUB are mainly theory-based and aid in providing a theoreticalconcept or base to the students so that they are equipped with sufficient knowledgefor joining the work force after completion of under-graduation. Internship helps thestudents familiarize them with the experience of being employed in their field andeffectively learning and applying the knowledge required carrying out their activitiesin the office. There are various reasons behind assigning students the course of Internship. The general objectives are outlined as follows:

Helping students break free from the theoretical world of textbooks and classcourses and leap into the real world of applications of knowledge.

Enabling the students to effectively interact in a work environment within ahierarchy of employees. The efficiency in working in groups and under higherauthorities is tested during this course.

Helping students to express dependability, initiative, resourcefulness andprofessionalism in the tasks they are assigned.

1 branch in Narayangonj

2 branches in Chittagong

1 branch in Khulna

1 branch in Sylhet

1 branch in Barishal

1 branch in BrahmanbariaThe Premier Bank is a 3 rd generation private Bank that has been approved as aPrincipal & Plus Member of VISA International. We have launched our prestigiousVISA Credit Card Services, a first of its kind by a local private Bank in Bangladesh.This is no doubt an exciting addition to our product line that not only bringsadditional satisfaction to our customers but also helps us achieve our goal in customerservices. Premier Bank Visa Credit card is an ATM card too, accepted by 8,40,000ATMs worldwide. For withdrawal of cash you can use those ATMs as well as ATMspossessed by Standard Chartered bank in Bangladesh. 1.3.3 Working Platform of Premier Bank The organization uses different types of hardware components including BrandCompaq PCs, IBM Servers and HP Printers. They use standard monitors as thescreen.The software used by the Premier Bank can be categorized into three broadcategories:

System software: The PCs are equipped with the Microsofts Windows 2000professional operating system. All PCs are connected with a central serverfrom where they get access to different application software.

Database software: They have their own database software named Prime.

Reporting tools: The reporting tool used by the Premier Bank is SeagateCrystal Report.All computers are attached with the network. A central server controls all securityinformation and authentication information of the users of the PCs, as well as, thedatabases is kept in different servers. They use Lotus Notes for their internal mailingsystem.

CHAPTER 2OBJECTIVE AND METHODOLOGY2.1 Objective The objective of this project was to design an Automated Teller Machine (ATM)system. I have followed some specific formalized steps to develop a solution for thisdesign.Depending on my internship period, I have divided my project schedule to track theefficiency and control of my project. I have used Gantt chart for my projectscheduling. The Gantt chart is shown below. August September October November 1 st week 2 nd week 3 rd week 4 th week 5 th week 6 th

week 7 th week 8 th week 9 th week 10 th week 11 th week 12 th week System analysisSystem designProgrammingTesting Figure 2.1: Gantt chart for Project Schedule

7 2.2 Methodology In general, Methodology is a systematic description of the sequence of activitiesrequired to solve a problem. In context to system development, methodology is acollection of procedures, techniques, tools and documentation aids, which help thesystem developers in their efforts to implement a new information system.The methodology that I have followed to develop the

system was not specific one. Itcan be said that the methodology followed was a hybrid of the System approach andPrototyping approach. The circumstances that lead me to take a hybrid approach aregiven below.

The System approach:

Many important features of the system were readily identified beforethe development began.

Data requirements were possible to be identified in advance.

The Prototyping approach:

The system had to be developed quickly and at the lowest possiblecost.

Users had little experience with the type of system to be developed.

The risk associated with delivering wrong system was high.

9 DFDs I have identified which processes of information system will be automated inorder to meet the requirements.

CHAPTER 3REQUIREMENT SPECIFICATION My requirement analysis founded a base on the new Information System that is to beimplemented and provided me the guidelines to move further on developing myproject. The answers that I get from the analysis are as described below. 3.1 Scope The main purpose of the Premier Bank Credit Card division and information serviceis to provide the customers financial flexibility, worldwide acceptance and round-the-clock convenience. Premier Bank issues only VISA Credit Cards, the renownedCredit Card brand. Cardholders can purchase goods/services up to the credit limit andcan reuse the credit facility upon repayment. Credit Card is a safer substitute to cashand is the major mode of payment worldwide. Standard Chartered Bank is the first tointroduce the TAKA CREDIT CARD. The card is issued basically to a persons nameand the specific person can use the card in anywhere in Bangladesh. The businessactivity of Premier Bank Credit Card section is to keep the records of all sales andcustomers requests, the information of cardholders and reports them to necessarydocuments.

11 3.2 Functional Requirements The functional requirements are organized in two sections; Requirements of theATM and Requirements of the bank computer.

Requirements of the ATM

authorization process

transaction (withdrawal process)

Requirements of the bank computer

authorization process (bank code and password)

transaction 3.3 Non-functional Requirements The non-functional requirement is bellowed.

The ATM network has to be available 24 hours a day.

Each bank may be processing transactions from several ATMs at the same time.

The ATM must be able to use several data formats according to the data formatsthat are provided by the database of different banks.

CHAPTER 4FEASIBILITY REPORT After the requirement analysis the feasibility study determines whether a proposedsystem is feasible or achievable, given the organizations resources and constraints.That is why feasibility studies are must for any new and expanding project. This studytakes a brief look at the major factor that will influence the ability of the system. It isindependent of my initial research, analysis or overall review of any new venture. Thethree major area of this study is technical feasibility, economical feasibility, andoperational feasibility. According to the requirements of the designing of ATMsystem, it is clear that a large amount of data is to be handled. To maintain allinformation for all the components a well-designed computerized system is needed.By implementation the system processing data consistency is improved. 4.1 Technical Feasibility

In this part, it is ensured whether the existing technical resources hardware, softwareetc. will support the design of the proposed system. During the component analysis itwas found that the Premier Bank uses computers. These computers work under aLocal Area Network (LAN) based system. Therefore, it can be concluded that theproposed system is technically feasible. 4.2 Economic Feasibility After analyzing the technical feasibility, the economic feasibility has to be considered.It is very important to take under consideration the cost effect of the system.

16

Customer Keypad: The Customer Keypad allows a customer to enter a PINnumber, select options and enter cash values. The keypad is only enabledwhen a card is detected in the Card Reader.

Customer Display: The Customer Display presents messages, options andreports to the customer. The display is active at all times.

Printout Dispenser: This provides the customer with a printed balance orreceipt. The Printout Dispenser reports to the system if the paper level is low.

Cash Dispenser: This assembles and delivers cash to the customer. Thedispenser receives information about the values and quantities of notes todispense (1 x TK.20, 2 x TK.5, etc). The Cash Dispenser reports to the systemif the cash levels are low.

5.2 System Diagram or Diagram 0 System diagram is the explosion of the context diagram. Each process isnumbered with an integer, generally starting from the upper left-hand corner of the diagram and working toward the lower right-hand corner. The major datastores of the system (representing master files) and all external entities areincluded on system diagram.

1.0VerifyPIN

fromcardKeep

orreturn PINA/C

card2.0PreparecommandCustomerKeypadPIN3.0UpdatedisplayEnter

No.Report5.0Preparemessage4.0Displaycustomeroptions6.0ReceiveoperatorcommandsMessage infoControlSystemCommandsEnableor DisableCard ReaderCommandsPIN &A/C

No.ATMstatusinfoReturncardCommandsand dataDisplayinfoCustomerDisplayMessages8.0PrepareprintoutType No.7.0ManagewithdrawalAmount &A/C No.Accounts &A/C

DatabaseA/CinfoDebitdetailsA/C

infoPrintoutDispenserPrintout infoCashdetailsCashDispenserMessagesAmountinfo 17Figure 5.2: System diagram of Automated Teller Machine (ATM) system

18The system diagram processes are described below. Interact with Operator: This process deals with commands from the system operator. These are thecommands which enable or disable the customer interface by controlling the CardReader. The operator may issue these commands from another computer system or byusing a switch on a control panel. Interact with Customer: This process handles all interactions with the customer and operates only when a cardis detected in the Card Reader. Input is received initially from the Card Reader andthen directly from the customer via the Customer Keypad. The customer receivesoutput from the Customer Display, the Printout Dispenser and the Cash Dispenser.Customer interactions may also involve sending reports to the Control System. Theinitial step of all customer interactions is to verify the customer's PIN number. Afterthis a menu of options is presented on the display which the customer selects bypressing appropriate keys on the keypad. These options lead to other displays andrequests for further input. Some options require account details which are retrievedfrom the Accounts Database and may also involve updating the database. During thefinal stage of all customer interactions the Card Reader is instructed to either return orconfiscate the card.

19 Prepare Command: This process handles communication with the Card Reader hardware. The systemrequires that the Card Reader is able to receive the following commands: ENABLE Makes the Card Reader ready to receive a card DISABLE Prevents the Card Reader from accepting a card RETURN Ejects a card from the Card Reader RETAIN Confiscates an unauthorized card The Card Reader is enabled and disabled by commands from the system operator. Acard is returned or retained in response to interactions with the customer. Update Display: This process deals with the Customer Display screen. When no card is in the CardReader, the Customer Display shows general information (such as 'Insert Card').When a card is detected the display is updated in response to customer interactions. If the system is disabled by the system

operator, the display is updated to indicate thesystem status.The following is a list of screens which are shown on the Customer Display. General Information - Insert Card and other messagesPIN Verification - Enter PIN message Main Options - Some or all of the following; Display Balance,Print Balance, Cash with Receipt, Cash without Receipt,Order Statement, Order Cheque book, Return Card Current Balance - Customer's account balance and cleared funds

CHAPTER 8CONCLUSION Back in 1969, Chemical Bank announced that a new form of banking was beinglaunched. With that, customers were provided with plastic cards designed with amagnetic strip that could be used with a machine built into a wall. Gone were thedays of having to stand in line for a teller or not having money on hand after normalbanking hours. Almost everyone has heard of and used an ATM machine.Interestingly, some of people feel that ATM machines are the best thing to happen inthe banking world while other people consider them a curse. The main complaintheard about ATM machines is that while they are convenient, they are expensive touse. However, if we look at it from a banking perspective, business is business.Regardless of what we think of ATM machines, there is no doubt that they havechanged the world and the way in which we do things. For example, think how manytimes we have been out somewhere only to discover we have no cash and we are outof checks, ah, but in the corner, there is an ATM machine. In the blink of an eye, weswipe the card and now have cash on hand. In addition to pulling money out, theATM machine also makes it convenient to deposit money, transfer money, and check balances. Best of all, to use an ATM machine, we do not have to go to the bank. Wewill find ATM machines at other banks, grocery stores, shopping malls, along theroadside, Buckingham Palace, airports, in casinos, and even on the South Rim of theGrand Canyon. For this reason, ATM machines are extremely helpful!

31 Lastly, the outcome of internship project is not just a product or report, there are morethan that. Here I learned how to work in professional environment with challenges inthe real development world, how to improve analysis and design techniques and howto cope with different working situations. Not only that, through report writing I got toknow how to compose professional and formal reports for any project or researchworks. These will help me a lot in future not only while working in industries but alsoin higher studies. Lastly, again I am grateful to IUB for giving me this opportunity toconduct my internship.

REFERENCES

1. OBrien, James A. 2000 Introduction to Information Systems: Essentials for the Internetworked E-Business Enterprise , McGraw-Hill.2.

Kendall, Kenneth E., Kendall, Julie E. 2003 Systems Analysis and Design ,Prentice-Hall India.3.

Pressman, R.S. 2001 Software Engineering: A Practionars Approach ,McGraw-Hill.4.

Whitten, Jeffrey L., Bentley, Lonnie D., Dittman, Kevin C. 2001 Systems Analysis and Design Methods , McGraw-Hill