Many banks now offer card-free ATM transactions.
Over the past few years, it’s become possible for virtually anyone to perform a cash withdrawal at an ATM without having to insert their debit cards. Banks have made it possible to use a smartphone to obtain cash from an ATM. This means that if you’ve accidentally left your wallet at home, you’ll still be able to obtain the cash you need.
How does a Cardless ATM Operate?
Cardless ATMs work using that specific bank’s app or an alternative payment option such as Samsung Pay, Apple Pay, or Google Pay. These apps will send a customer a numerical code that must be entered physically on the keypad or scanned at the ATM.
The above-mentioned contactless payment service providers use a technology known as near-field communication. This allows customers to hold their smartphones close to the ATM so that they can then access the specific bank account that they have linked to the payment app.
Banks sometimes even allow their customers to schedule a cash withdrawal ahead of time through their mobile app. A predetermined cash withdrawal amount can be selected, which saves time because it gives the customer up to 24 hours to get to the ATM and withdraw their money. Cardless ATMs provide bank customers with the same options when using their physical cards – including types of transactions and withdrawal limits.
Which Banks Allow Customers to Use Phones at their ATMs?
Below are just some of the more common significant banks that have made provisions for cardless ATM transactions:
- Bank of America
- Chase
- Wells Fargo
- PNC
- Capital One
- Most other larger banking groups
Advantages of Using your Phone at the ATM
1. Ease of Use
Many customers cannot remember endless reams of information such as PIN codes and other account-related info. As such, using their phones allows them to rely on biometric logins such as fingerprint or facial recognition instead whenever they need to withdraw cash.
2. No Need to Fumble with your Wallet
Sometimes, carrying a wallet around with a phone is not convenient, and cardless ATMs allow customers to access their funds directly through their phones instead of using a physical card. Not always having a wallet with you means you’re also at less risk of being pickpocketed.
3. Less Physical Contact Required
Although cardless ATMs don’t completely eliminate the need for physically touching the machine, they substantially reduce the need for doing so. Because ATMs are not cleaned as regularly as they should be, the need for less physical touch is a definite advantage nowadays.
Potential Disadvantages of Cardless ATMs
1. Lack of Availability
Unfortunately, cardless ATMs aren’t available everywhere as yet. Regardless of whether your bank provides this service or not, and if you have a compatible smartphone, you may still not have an ATM nearby that you can use to take advantage of.
2. Compatibility
You will need a smartphone fully compatible with your bank’s specific app if you intend to use this functionality at their ATMs. If your phone isn’t compatible, you won’t be able to perform cardless transactions.
3. Potential Security Issues
While cardless transactions are considered more secure than those relying on a physical card, they pose other risks. Because physical cards are being replaced by smartphones, criminals will be keen to hack these devices to obtain any available personal and banking information. The best way to minimize this risk is to use a screen lock or biometric identification to access your phone.