Page 225 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes (vi) Purchasing-postage stamps, lottery tickets, train tickets, concert tickets, shopping
mall gift certificates, Games and promotional features, Donating to charities, Cheque
Processing Module, recharging pre-paid cell phones.

Increasingly, banks are seeking to use the ATM as a sales device to deliver pre-approved
loans and targeted advertising using products such as ITM (the Intelligent Teller Machine)
from CR2 or Aptra Relate from NCR.
3. Placement of ATM's: ATMs are placed not only near or inside the premises of banks, but
also in locations such as shopping centers/malls, airports, grocery stores, petrol/gas
stations, restaurants, or any place where large numbers of people may gather. These
represent two types of ATM installations: on and off premise.
4. Transactional Secrecy and Integrity: The security of ATM transactions relies mostly on
the integrity of the secure cryptoprocessor: the ATM often uses commodity components
that are not considered to be "trusted systems".

Encryption of personal information is used to prevent fraud. Sensitive data in ATM
transactions are usually encrypted with data encryption standard (DES) but transaction
processors now usually require the use of Triple DES. Remote Key Loading techniques
may be used to ensure the secrecy of the initialization of the encryption keys in the ATM.
Message Authentication Code (MAC) or Partial MAC may also be used to ensure messages
that have not been tampered with while in transit between the ATM and the financial
network.
5. Customer Identity Integrity - An ATM with a palm scanner: There have also been a
number of incidents of fraud where criminals have attached false keypads or card readers
to existing machines. These have then been used to record customers' PINs.

11.5 Electronic Clearing Service (ECS)

It is a mode of electronic funds transfer from one bank account to another bank account using the
services of a clearing house. This is normally for bulk transfers from one account to many
accounts or vice-versa.
This can be used both for making payments like:
1. Distribution of dividend, interest, salary, pension, etc. by institutions
2. For collection of amounts for purposes such as payments to utility companies like
telephone, electricity, or charges such as house tax, water tax, etc.
3. For loan instalments of financial institutions/banks or regular investments of persons

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