Can ATMs Break Bills? How They Actually Work

An automated teller machine (ATM) is an electronic device that allows individuals to perform basic financial transactions. Its primary function is to provide convenient access to cash without a bank teller. Many people wonder if ATMs can “break” larger bills into smaller denominations, similar to a change machine.

How ATMs Dispense Cash

ATMs do not “break” bills. Instead, machines are equipped with internal compartments, called cassettes, each loaded with specific denominations like $5, $10, $20, $50, and $100 bills. When a user requests cash, the ATM’s software calculates the precise combination of bills from its stock to fulfill the amount. For instance, if a user withdraws $40, the machine dispenses two $20 bills rather than accepting a $100 bill and giving $60 in change.

The cash dispensing mechanism involves feeders and rollers that pull out one bill at a time. As each bill exits, it passes through sensors that count and verify its authenticity. If bills are stuck together, worn, torn, or folded, the machine typically diverts them to a reject bin and attempts to dispense a different bill. This process ensures the ATM delivers the exact requested sum with precision and security.

Why Denominations Vary

The denominations available in an ATM are determined by operational factors and bank decisions. Locations play a significant role; machines in high-traffic areas often stock smaller bills like $5s and $10s. Conversely, ATMs in business districts might primarily carry $20s and $50s. Financial institutions analyze historical transaction data and anticipate demand patterns, such as increased withdrawals before holidays or during pay periods, to optimize cash stocking.

Security considerations also influence denomination choices, as larger bills can pose a higher risk. The physical capacity of ATM cassettes limits the number of denominations a single machine can hold. Efficient cash management aims to minimize the frequency of cash refills by armored carriers while ensuring the machine does not run out of money. This balance between customer convenience, operational efficiency, and security dictates the varied bill options found across different ATMs.

Getting Specific Bill Sizes

Since ATMs dispense predetermined denominations, obtaining specific bill sizes requires alternative methods. One approach is visiting a bank branch during business hours and requesting desired denominations from a teller. Bank tellers have access to a full range of currency and can typically accommodate requests for smaller bills like $1s, $5s, or $10s.

Another option is utilizing the “cash back” service offered at many retail stores, such as grocery stores or pharmacies. When making a purchase with a debit card, customers can often request additional cash, and some stores may allow specifying denominations, though this varies by retailer. Cash back limits typically range from $10 to $50, and this service often helps avoid ATM fees. Additionally, making a small purchase at any retail location and paying with a larger bill will result in receiving change, which can include smaller denominations. Some self-checkout machines also dispense change when cash is used for payment, providing another way to acquire smaller bills.