ATM Error Code 163: Causes, Fixes, and Troubleshooting Guide

ATM Error Code 163: What It Means and How to Fix It

When an ATM displays Error Code 163, it usually indicates a dispenser or cash cassette problem. In plain terms, the machine ran into an issue while trying to dispense cash—often due to a jam, misfeed, or hardware malfunction inside the unit. The good news is this is a known, fixable issue that rarely results in lost funds.

This guide explains what ATM Error 163 means, the most common causes, what to do if you’re a cardholder seeing this message, and how ATM owners or technicians can troubleshoot and prevent future errors. For a broader overview of similar issues, you can also review our ATM transaction errors guide.

What Is ATM Error Code 163?

Error Code 163 is a cash dispenser fault found in many ATM models, including those by NCR, Diebold, and Hyosung. It typically appears when the machine attempts to dispense money but detects an internal failure—such as the dispenser motor not completing its rotation, a jam in the cash path, or a misalignment with the cassette sensors.

When this error occurs, the transaction is usually reversed automatically to protect both the customer and the bank. Still, it’s smart to double-check your account or app to make sure no funds were deducted. If a debit did go through without cash being dispensed, our ATM dispute resolution guide explains how banks typically handle reimbursements.

Common Causes of ATM Error Code 163

There are a few root causes that trigger this error, most of which relate to physical issues inside the dispenser or cash-handling system:

• Cash jam or blockage – Bills stuck between rollers, shutters, or the exit gate prevent proper dispensing.
• Empty or misloaded cassette – The ATM can’t access cash if a cassette is out of position, out of notes, or incorrectly seated.
• Dirty or damaged sensors – Dust, debris, or paper fragments can block the sensors that track bill movement.
• Worn rollers or belts – Over time, rollers and belts lose traction, causing misfeeds or incomplete dispenses.
• Improper cassette setup – A cassette inserted incorrectly or with an unlocked latch can immediately trigger an error.
• Software or firmware glitch – Less commonly, a system fault or update may cause communication errors between the dispenser module and the controller.

What To Do if You See Error 163 as a Customer

If you see this error at an ATM, don’t panic. It’s almost always a mechanical issue within the machine—not a problem with your card or account. Follow these steps:

1. Wait and watch the screen. Most ATMs will automatically reverse the transaction and display a message confirming no funds were dispensed.
2. Check your balance via your bank’s mobile app, website, or by using another machine from your bank’s network.
3. Save proof of the error. Keep your receipt or take a photo of the screen showing the error code and time.
4. Try another ATM, preferably one belonging to your own bank to reduce fees and network issues. You can use our nearby ATM finder to locate another machine quickly.
5. Report the issue if money was debited but not dispensed. Follow the steps in how to report an ATM problem so your claim is documented correctly.

How ATM Owners or Technicians Can Fix Error 163

For ATM operators, Error 163 points to a problem within the dispenser unit or its connection to the controller. The following steps typically resolve the issue:

1. Inspect the Dispenser Mechanism

• Power down the machine before any inspection or maintenance.
• Remove all cassettes and check for jammed bills, bent notes, or loose fragments of paper in the cash path.
• Verify that shutters and exit gates move freely without obstruction.
• Clean dust, lint, or debris from rollers and sensors using compressed air or a soft brush.

2. Check Cash Cassette Alignment and Status

• Ensure each cassette is loaded correctly and seated firmly in its slot.
• Confirm that cassette sensors recognize the presence, level, and denomination of bills.
• Lock all latches securely before rebooting the ATM.

3. Run Diagnostic Tests

• Access the machine’s maintenance or service mode and run a dispenser self-test.
• Review any sub-error codes that appear, as they can pinpoint whether the issue is mechanical, electrical, or software-related.
• Clear any residual “error lock” by cycling the power or resetting the dispenser module through diagnostics.

4. Verify Communication with the Controller

• Check all cables between the dispenser and main controller board for secure, proper connections.
• Inspect for bent pins, corrosion, or damaged connectors that could affect communication.
• Ensure firmware on the dispenser is compatible with the current controller version; mismatched software can cause persistent 163 errors.

5. Replace or Service Hardware as Needed

If cleaning, reseating, and testing don’t resolve the issue, the fault may stem from worn belts, motors, or sensors. In that case, replacing the affected components—or in some cases, the entire dispenser unit—may be necessary. Document any part replacements so you can track patterns and avoid repeat failures.

Prevention Tips for ATM Error 163

Preventive maintenance goes a long way toward minimizing recurring 163 errors and keeping uptime high:

• Clean dispenser rollers and sensors regularly, especially in dusty or high-traffic locations.
• Use crisp, clean bills when loading cassettes to reduce misfeeds.
• Schedule professional maintenance at least quarterly, or more often for busy sites.
• Monitor error logs remotely to catch early warning signs of dispenser wear.
• Replace worn or damaged parts before they cause full dispenser failures.

If customers are frequently seeing declined withdrawals or error screens, pair this maintenance with user-facing education by linking to your own version of an ATM errors and causes explainer.

Frequently Asked Questions

Does Error 163 mean I lost money?
Usually not. The ATM’s system will automatically reverse the transaction if cash fails to dispense. Always check your account balance to confirm and keep your receipt if you need to file a dispute.

Can I use the same ATM again right away?
It’s best to wait or choose another machine. The ATM may still be in “out of service” mode while the error is being logged or reset. Use a different in-network machine located through our ATM locator if you need cash immediately.

Is Error 163 the same as Error 161 or 164?
Not exactly. These codes are related but indicate slightly different dispenser issues. Error 163 usually refers to a general cash dispense failure, while 161 and 164 often point to cassette misfeeds, gate jams, or more specific dispenser faults.

Key Takeaway

ATM Error Code 163 signals a cash dispenser malfunction, often due to jams, misaligned cassettes, or sensor faults. For customers, the fix is simple—check your balance, keep your proof, and try another machine if necessary. For operators, routine cleaning, cassette checks, diagnostics, and timely part replacements can keep Error 163 from interrupting transactions or frustrating users.

For more help with broader ATM issues, including reversals and missing funds, see our ATM dispute resolution guide and ATM problem reporting steps so both customers and operators know exactly what to do next.