A facial recognition system is a computer application for automatically identifying or verifying a person from a digital image or a video frame from a video source. Proposed paper uses face recognition technique for verification in ATM system. For face recognition, there are two types of comparisons. The first is verification, this is where the system compares the given individual with who that individual says they are and gives a yes or no decision. The next one is identification this is where the system compares the given individual to all the other individuals in the database and gives a ranked list of matches. Face recognition technology analyzes the unique shape, pattern and positioning of the facial features. Face recognition is very complex technology and is largely software based. This Biometric Methodology establishes the analysis framework with PCA algorithms for each type of biometric device. Face recognition starts with a picture, attempting to find a person in the image. This can be accomplished using several methods including movement, skin tones, or blurred human shapes. © 2011 IEEE.