Can an ATM Break Bills Into Smaller Denominations?

Automated Teller Machines (ATMs) allow individuals to manage their finances without visiting a bank branch. These self-service terminals enable users to access their bank accounts for various transactions. Common uses include withdrawing cash, making deposits, and checking account balances. ATMs offer a convenient way to perform routine banking tasks.

ATM Denomination Dispensing Capabilities

When a user initiates a cash withdrawal, the ATM dispenses the requested amount using the denominations it has in stock. Most ATMs primarily dispense $20 bills. Some machines may also stock $50 or $100 bills, and some ATMs, especially those in bank branches, might offer $5 or $1 bills. The machine’s internal software algorithm selects a combination of these available denominations to fulfill the exact withdrawal amount.

The ATM’s goal is to dispense the requested sum, not to provide change from a larger bill. For example, if a user requests $60 from an ATM that stocks $20s and $50s, it might dispense three $20 bills. If the same ATM also stocked $10s, it might dispense a $50 and a $10 bill depending on its programming. While some newer ATMs offer an option to choose preferred denominations, this feature is not universally available.

What ATMs Cannot Do with Bill Exchange

ATMs are not designed to function as currency exchange machines that “break” a larger bill into smaller ones. Unlike a human teller who can accept a $100 bill and provide five $20 bills in return, an ATM cannot perform this type of direct exchange.

If a user inserts a large denomination bill into an ATM, such as a $50 or $100 bill, the machine processes it as a deposit to the linked bank account. It will not return smaller bills as change for the inserted large bill. Individuals needing to exchange large bills for smaller ones typically need to visit a bank branch or a financial institution where a human teller can assist.

Factors Influencing Denominations Received

The specific denominations an ATM dispenses during a cash withdrawal are influenced by several practical considerations. Banks stock ATMs with particular denominations based on factors like typical customer demand, the ATM’s location, and bank policy. While $20 bills are nearly universal, the inclusion of $10, $50, or $100 bills varies.

The ATM’s internal software uses an algorithm that might prioritize using larger denominations to conserve smaller bills or balance the use of different denominations to manage cash levels. The amount requested by the user also plays a significant role; for example, a request for $40 will likely result in two $20 bills, while a request for $70 might involve a $50 and a $20 bill if both are available.