The First ATM

The first ATM or cashpoint opened in London over 50 years ago, in June 1967. (The photo is of English comedy actor Reg Varney making the first withdrawal.)

This machine was developed by De La Rue for Barclay's Bank and had the catchy name of De La Rue Automatic Cash System or DACS.

The technology spread to the United States two years later. In 1969, Chemical Bank of New York opened its first machine in Rockville Center. This was a Docuteller developed by Docutel of Dallas, Texas. The rest is history.

In the US, the ATM made the $20 note ubiquitous and far better known than in previous decades. Every ATM dispenses $20 bills, and most ATMs dispense only $20s.

I have never found a definitive explanation for the popularity of $20s for ATMs. But, from what evidence I have seen, I would conclude that it is the cheapest denomination to put in a cash cartridge. It is the largest denomination that will be accepted by any business. So, you can stock fewer notes (instead of stocking the equivalent value in $10s or $5s). People will also withdraw fewer $20s than the smaller denominations, reducing servicing of the ATM.