A cardless ATM is an automated teller machine (ATM) that allows users to perform transactions using a mobile phone or a special debit card without using a physical debit or credit card.
Many banks and credit unions offer cardless ATM access, which allows you to perform transactions through ATM using your smartphone instead of a physical debit card. Here is a list of some banks that offer this service:
- Bank of America
- Capital One
- Chase
- Citibank
- Wells Fargo
- PNC Bank
- US Bank
- TD Bank
- HSBC
How Cardless ATMs Work
Cardless ATMs allow customers to initiate and complete transactions without needing to insert a physical debit or credit card into the machine. Instead, customers can use their smartphone or another mobile device to initiate the transaction and authenticate themselves using methods such as Near-Field Communication (NFC), QR codes, or biometric authentication.
Initially, customers need to hold their mobile or card near an NFC reader or scan a QR code displayed on the ATM screen. After that customers are usually asked to input their PIN codes or use another available biometric method to authenticate themselves. Then customers are able to do banking transactions through ATM such as depositing funds, dispensing cash or checking account balances, etc.
Near-Field Communication (NFC)
Most mobile wallets, Apple Pay, and Google Pay use NFC technology which is near field communion technique.
To use NFC for a cardless ATM, you will need an NFC-enabled device such as a smartphone. Then open the account card you want to use and Hold or tap it on the NFC reader at the ATM to initiate the transaction. To complete the transaction, you may also need to enter a PIN or use biometric authentication, such as a fingerprint or facial recognition.
Using NFC for a cardless ATM can be very convenient as you do not need to carry a physical card. It can also be more secure, as your payment information is not stored on the card and can only be accessed with your device and authentication methods.
Wells Fargo offers debit cards with NFC technology, allowing you to tap your card at an ATM equipped with NFC capabilities to complete a transaction.
QR and Other Verification Codes
Customers need a mobile banking app or debit or credit card added to their mobile wallet to scan the QR codes for cardless ATM. The customer can also enter a verification code provided by the bank to verify themself with the system. One advantage of using QR codes or other verification codes for cardless ATMs is that they can be more widely available.
Verification code
Customer needs to open a banking app on their mobile and select the type of transaction they would like to perform. Upon selection, they will be provided with OTP i.e. one time password that customer needs to enter at the ATM screen along with their PIN. One-time code typically expires after a certain amount of time, around 30 minutes.
Once the verification code and PIN are approved, your requested transaction will be performed.
Biometrics
People use biometric methods such as facial scans or fingerprints to unlock their phones. Similarly to using biometrics for cardless ATMs, the customer typically needs a smartphone with a fingerprint scanner or facial recognition technology. The customer can then use their biometric information to initiate and complete the transaction. One advantage of using biometrics for cardless ATM is that it can provide an additional level of security, as biometric information is unique to the individual and cannot be easily replicated or stolen.
How to use chase cardless ATM?
To use a Chase cardless ATM, you will need a Chase debit or credit card added to your mobile wallet to scan at Chase’s cardless ATM service. Once you are at Chase cardless ATM, open added card on your mobile wallet and hold it near the contactless symbol or reader. Upon prompt enter your ATM PIN associated with your debit card. After this, you can perform any transaction you want to perform.
Pros of using cardless ATMs
There are several advantages to using cardless ATMs:
- Customers do not need to carry actual physical debit or credit cards.
- Cardless ATMs reduce the risk of card skimming as there is no physical card to skim.
- Cardless ATMs are more time-saving than traditional transactions, as there is no need to insert a card into the ATM.
- Some cardless ATMs offer additional features such as making deposits using a smartphone camera.
- Customers with disabilities or mobility issues can easily perform transactions using cardless ATMs.
Cons of Cardless ATM
There are a few potential drawbacks to using cardless ATMs:
- Cardless ATMs are not yet widely available and not all banks offer this service especially in rural areas.
- Mobile devices like a smartphone or smartwatches are necessary for cardless ATMs.
- Cardless ATMs are connected to the network to initiate and complete the transaction. Internet connection issues can stop customers from using Cardless ATMs.
- The ATM and the customer’s mobile need to be compatible with the technology, such as NFC or QR codes.
Is a Cardless ATM Right for You?
Cardless ATM access allows you to withdraw cash from ATMs without using a physical debit card, which can be convenient and time-saving. Cardless ATMs also reduce the risk of card skimming thus improving security.
Be sure to check with your bank to see if this option is available, and start setting up your card in your mobile wallet and bank apps. However, if you are happy with your current method and want to avoid risking your phone battery dying, there is nothing wrong with continuing to use plastic debit cards.