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If you’re a fan of mobile wallets and touch-to-pay technology, your debit card just got an upgrade. Cardless ATMs allow users to access their cash without a physical debit card, making it possible to travel light and not sweat the need for cash if you happen to have left your wallet at home. And don’t worry—cardless ATMs come complete with additional security features to ensure that your cash stays safe, even if your mobile device goes missing.
What Is Cardless ATM Access?
Cardless ATMs allow you to get money and conduct other transactions without swiping or inserting your debit card into a card reader. Instead of requiring a card, these ATMs use different types of technology (which are explored in detail below) to link a mobile app on your phone to the ATM. Once you complete additional security steps, you’ll be able to conduct your business at the ATM just as you would if you’d inserted a card.
Cardless ATM access isn’t new. Bank of America launched a cardless ATM back in 2016 and several other banks like Chase, Wells Fargo and BMO Harris have all empowered their ATMs with cardless access.
How Do Cardless ATMs Work?
Cardless ATMs connect your digital debit card information to the ATM using a few different kinds of technology.
Near-Field Communication (NFC)
Near-field communication (NFC) is a close-range technology that allows you to hold up your mobile device to a receiver and transmit data within a short-range via a radio frequency. If you’re using tap-to-pay technology such as Android Pay, Apple Pay, Samsung Pay or even a credit card with an NFC chip, you’re already a seasoned user of NFC tech.
At cardless ATMs enabled with NFC technology, you simply hold up your mobile device with the mobile wallet or banking app open to the ATM’s NFC receiver. Once the machine verifies it’s received your information, you use the ATM as if you’d inserted your debit card.
App-Generated Codes
QR Code. QR (Quick Response) codes are codes similar to barcodes that you scan with your mobile device’s camera. However, since QR codes are more complex in design, they can communicate more information than a barcode.
For cardless ATMs enabled with QR code technology, the ATM will generate a QR code and display it on the screen. Then, you’ll use your mobile banking app to scan the code for identity verification. Once your identity is verified with the mobile banking app after the scan, you’ll be able to complete your transaction. BMO Harris Bank is one example of a bank that uses QR code technology with its cardless ATMs.
Verification Code. Verification codes act much like two-factor authentication for online logins, adding a layer of security. With verification code technology at cardless ATMs, you’ll use your mobile banking app for the majority of your transaction.
Inside your bank’s app, you’ll log in and indicate what kind of transaction you want to make (including deposits, withdrawals and other banking functions). The app will generate a unique, one-time verification code that you’ll enter into the ATM along with your PIN. The verification code won’t work again after you complete your transaction and generally expires after 30 minutes.
Biometric Verification
Any device that uses biometric data uses your physical attributes (face, fingerprints, eyes or palm print) to verify your identity. If your phone or laptop unlocks with a fingerprint or facial recognition, you’re already using biometric verification.
If your bank uses biometrics, you submit the requested biometric data through a scan through the bank, which securely stores that information. Then, when you access a cardless ATM with biometric verification, the machine scans your fingerprint, iris, face or palm print and compares it to the data you have on file at the bank. It confirms your identity before granting access to your cash or other account functions.
What Are the Benefits to Cardless ATMs?
For those excited about ATMs catching up with the mobile app lifestyle, cardless ATMs offer several benefits. You get the convenience of having your debit card with you whenever you have your phone on hand. And you can also enjoy the same seamless, digital experience you get when paying via mobile at your favorite merchants.
In addition to convenience, here are some additional benefits to cardless ATM access:
- Broad account access. With more banks enabling cardless ATM access, you’ll benefit from being able to access multiple bank accounts digitally. If you’ve been frustrated by out-of-network ATM fees, cardless access makes it easy to switch debit cards via your mobile device. You can use a debit card linked to an account that’s in-network at a particular ATM, saving you from unnecessary fees.
- Less contact. If the pandemic’s made you more aware of how many things you touch each day, you’ll appreciate how cardless ATMs cut down on contact. While they don’t eliminate the need to touch an ATM, you’ll do more of the transaction on your familiar mobile device instead of via the ATM.
- Security. Cardless ATMs take previous debit card security risks like skimmers out of the equation while adding identity verification layers like biometrics, verification codes and QR codes to keep your account access secure.
What Are the Drawbacks to Cardless ATMs?
For all their security enhancements and ease-of-use features, cardless ATM access does have some drawbacks.
- Device compatibility. Your phone must be compatible with your bank’s mobile app to use a cardless ATM. Be sure to ask your bank about the types of devices that will work with their app.
- Mobile device loss. If your phone is lost or stolen, you could be at risk for thieves to access your bank account if you don’t have additional security features activated on your phone. To help prevent unauthorized access if you get separated from your phone, be sure to use your phone’s security features such as screen lock and remote data wipe capabilities to protect your device.
- Proliferation. While cardless ATMs are rising in popularity, they’re not the norm yet. While you might be able to use cardless access when using your bank’s ATMs, you may still have to carry a card to use other ATMs while traveling to locations where your bank doesn’t have physical branches.
Should I Use Cardless ATM Access?
If you appreciate the ease that mobile banking adds to your life, cardless ATMs can add another layer of access that aligns with your lifestyle. However, if you choose to use cardless ATM functions through your bank’s mobile app, be sure to make your phone as secure as possible through your phone’s built-in security functions. If available, you can turn on two-factor authentication with your bank’s mobile app to add another layer of login security to your banking experience.
