How Do Cardless ATMs Work?

It's easier than ever to pay for things electronically, eliminating the need to handle cash. You can use your phone's mobile wallet as a replacement for payment cards, and you can even use your phone for cash withdrawals at an ATM.

You probably take your mobile device with you wherever you go, and that can include short trips out of the house without a debit card. Learn how cardless ATMs work so you can decide how to make your next withdrawal.

What is an ATM without a card?

Cardless ATMs are machines where you can withdraw cash without inserting a traditional ATM card into the machine. With this technology, your ATM experience can be safer and faster. You can perform the same banking tasks that you would with a card, including cash withdrawals, balance inquiries, and more.

Chase Bank, Bank of America, Wells Fargo, and other major banks offer the option of accessing an ATM with your bank's app. But that's not just for big bank customers - your local credit union or regional bank probably offers cardless ATM withdrawals as well.

How cardless ATMs work

To use an ATM without a card, you will need to provide the card information stored in your phone's mobile wallet. For example, you can use Apple Pay, Google Pay, or Samsung Pay. Alternatively, you may need to install your bank or credit union's mobile app for cardless ATM transactions.

It will verify your identity and authorize the transaction on your mobile device, and your device will communicate with the ATM using a QR code or radio waves.

Near Field Communication (NFC)

NFC is a way for devices to communicate in close proximity using radio waves that travel only four inches or more, requiring the devices to be in close proximity. This is why your bank may instruct you to "tap" your phone at a specific location when using the ATM.

When you touch your phone, it sends your card information to the ATM. Then enter your PIN or use additional methods to authorize the transaction.

Wells Fargo debit cards have NFC built in, so you can also use your card at an NFC-enabled ATM.

QR and other verification codes

Cardless transactions may require you to verify your identity with more than just an NFC card or device. In some cases, the ATM displays an image of a QR code that you scan with your mobile device's camera.

Biometrics

Biometric security solutions use your body to verify your identity, adding additional protection to your bank accounts. The most popular biometric security measures on phones are fingerprint and facial recognition.

When you enable cardless ATM transactions (adding a debit card to a mobile wallet, for example), it's smart to protect your wallet with face or fingerprint verification or a strong password. For example, you can configure your phone to request a fingerprint before allowing access to your digital wallet.

Some ATMs rely exclusively on biometrics, eliminating the need for a mobile device, although they are more common outside of the US.

Advantages explained

Safe: There is no risk of flipping through the card because you never swipe your card and you cannot lose it while in public. Also, if your bank or credit union does not require you to enter your PIN, there is no risk of people seeing your PIN or hidden cameras capturing confidential information.

Travel light: Whether you forget your cards at home or prefer not to take them with you wherever you go, your phone is all you need.

Fast - Cardless ATM withdrawals can save you time, and you can even start the process before you hit the ATM.
Disadvantages explained

It's not universal - not all ATMs can offer cardless access, and your bank may not have cardless ATMs near you.

You still have security concerns: Losing your phone can result in additional headaches when your money is at risk.

It's critical to keep your phone up to date, enable all available security measures (such as biometric security and two-factor authentication), and notify your bank immediately if you lose your phone.

It's easier than ever to pay electronically, eliminating the need to handle cash. You can use your phone's mobile wallet as a replacement for payment cards, and you can even use your phone for cash withdrawals at an ATM.

You probably take your mobile device with you wherever you go, and that can include short trips away from home without a debit card. Learn how cardless ATMs work so you can decide how to make your next withdrawal.

What is an ATM without a card?

Cardless ATMs are machines where you can withdraw cash without inserting a traditional ATM card into the machine. With this technology, your ATM experience can be safer and faster.

You can perform the same banking tasks that you would with a card, including cash withdrawals, balance inquiries, and more.1

Chase Bank, Bank of America, Wells Fargo, and other major banks offer the option of accessing an ATM with your bank's app. But that's not just for big bank customers - your local credit union or regional bank probably offers cardless ATM withdrawals as well.

How cardless ATMs work

To use an ATM without a card, you will need to provide the card information stored in your phone's mobile wallet. For example, you can use Apple Pay, Google Pay, or Samsung Pay. Alternatively, you may need to install your bank or credit union's mobile app for cardless ATM transactions.

It will verify your identity and authorize the transaction on your mobile device, and your device will communicate with the ATM using a QR code or radio waves.

Near Field Communication (NFC)

NFC is a way for devices to communicate very closely using radio waves that travel only four inches or more, requiring the devices to be in close proximity. This is why your bank may instruct you to "tap" your phone at a specific location when using the ATM.

When you touch the phone, it sends your card information to the ATM. Then enter your PIN or use additional methods to authorize the transaction.

Wells Fargo debit cards have NFC built in, so you can also use your card at an NFC-enabled ATM.

QR and other verification codes

Cardless transactions may require you to verify your identity with more than just an NFC card or device. In some cases, the ATM displays an image of a QR code that you scan with your mobile device's camera.

Biometrics

Biometric security solutions use your body to verify your identity, adding additional protection to your bank accounts. The most popular biometric security measures on phones are fingerprints and facial recognition.

When you enable cardless ATM transactions (adding a debit card to a mobile wallet, for example), it's smart to protect your wallet with face or fingerprint verification or a strong password. For example, you can configure your phone to request a fingerprint before allowing access to your digital wallet.

Some ATMs rely solely on biometrics, eliminating the need for a mobile device, although they are more common outside of the United States.

Advantages explained

Safe: There is no risk of swiping the card because you never swipe the card and you cannot lose it in public. Also, if your bank or credit union does not require you to enter your PIN, there is no risk of people seeing your PIN or hidden cameras capturing confidential information.

Travel light: Whether you forget your cards at home or prefer not to take them with you wherever you go, your phone is all you need.

Fast - Cardless ATM withdrawals can save you time and you can even start the process before going to the ATM.
Disadvantages explained

It's not universal - not all ATMs can offer cardless access, and your bank may not have cardless ATMs near you.

You still have security concerns: Losing your phone can result in additional headaches when your money is at risk. It's critical to keep your phone up to date, enable all available security measures (such as biometric security and two-factor authentication), and notify your bank immediately if you lose your phone.

We hope you enjoy watching this video about how cardless cash ATMs work

Source: CreditCards.com

 

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