While financial technology is minimizing the need for frequent cash transactions, it has also made it more convenient to access cash when needed.

Cardless ATMs enable you to complete transactions through your bank’s smartphone app. This feature is especially useful if you forget your debit card or prefer to limit physical contact with an ATM’s screen.

What are cardless ATMs and how do they work?

Cardless ATMs let you access your account and withdraw cash without using a physical card. Instead, they use account verification through a text message or a banking app on your smartphone.

Cardless ATMs can operate in various ways, including through quick response (QR) codes, near-field communication (NFC), verification codes, and biometric verification.

QR Codes

To use a cardless ATM with a QR code, first set up the mobile withdrawal through your banking app. The ATM will display a QR code on its screen, which you scan with your phone. After scanning, the ATM will dispense the cash.

Near-field Communication (NFC)

NFC technology, used by services like Apple Pay, allows you to withdraw cash at a cardless ATM by tapping your phone against the designated reader. Open your banking app, select the account you wish to withdraw from, and then complete the transaction by entering your PIN, just as if you had used a physical card.

Verification codes

To use a verification code, open your bank’s app and select the type of ATM transaction you want. The app will generate a one-time code, which you enter at the ATM along with your PIN. This code typically expires after a short period, such as 30 minutes. Once entered, the ATM will process your transaction and dispense the requested amount.

Biometric verification

Biometric verification allows you to use features like facial recognition or fingerprints to access your smartphone. Some banks store biometric data, enabling their ATMs to verify your identity for transactions without a physical card. This method lets you withdraw cash or perform other functions simply by using your biometric credentials.

How to use a cardless ATM

Using a cardless ATM can differ depending on your bank, but generally, the process involves these steps:

  • Add Your Card to a Digital Wallet: Upload your debit card to a digital wallet like Apple Wallet, Google Wallet, or Samsung Wallet by scanning the card or entering the information manually.
  • Tap Your Phone: If the ATM has a contactless symbol, hold your phone near the symbol. You’ll then be prompted to enter your PIN.
  • Complete the Transaction: Perform your desired transaction—whether it’s withdrawing cash, making a deposit, or checking your balance. Once done, make sure to end the session.

Pros of using cardless ATMs

Fewer steps involved

Drew Cheneler, founder of SimpleMoneyLyfe, notes, “Our phone is slowly becoming our wallet.” Many consumers rely on facial or fingerprint recognition for account access, a feature some cardless ATMs also support, reducing the need to remember or manually enter account information.

Access to all your accounts

You might not always have all your ATM cards with you, particularly if you bank with multiple institutions or have lost your card. Cardless ATMs enable you to access your accounts even if you don’t have the physical card, helping you avoid out-of-network ATM fees.

No need to carry a wallet

Carrying a wallet, purse, or other card-holding accessory isn’t always convenient. With cardless ATMs, you can complete transactions using just your smartphone, reducing the risk of pickpocketing or theft.

Security

While not completely risk-free, cardless ATMs offer added security features. Since you don’t insert a card into the machine, skimmers can’t capture your card data. Additionally, one-time use codes and two-step authentication make it harder for hackers to gain access, as they would need both your PIN and your phone.

A more sanitary option

Cardless ATMs reduce physical contact, although they don’t eliminate it entirely. Fewer touches mean less opportunity for germs to spread, making cardless transactions a cleaner alternative to traditional ATM use.

Cons of using cardless ATMs

Availability

Cardless ATMs are not universally accessible. Even if your bank offers this service and your phone supports the technology, you might still struggle to find a cardless ATM in your area.

Compatibility

Cardless ATMs require smartphones to function. If your bank uses a specific app for cardless transactions, your phone must be compatible with that app. Additionally, not all smartphones support the technology used by cardless ATMs.

Phone security

While cardless ATMs generally offer enhanced security, they introduce new risks. Ricardo Pina, founder of The Modest Wallet, warns, “As bank cards are replaced by phones, criminals may be more inclined to target and hack your phone to access your data, information, and even modify your phone and bank app settings.” To mitigate these risks, ensure your phone is secure and regularly update your banking apps.

Popular accounts with cardless ATM access

Chase, Wells Fargo, Capital One, and Bank of America all support Google Pay, Apple Pay, and Samsung Pay. Their cardless ATM apps are designed to work with these payment services, making them compatible with both Android and Apple devices.

In Conclusion

Cardless ATMs offer a convenient, secure, and more hygienic way to withdraw cash without needing a physical card. They are particularly useful in emergencies, even if you don’t use them frequently. Future advancements in cardless banking could make transactions even more seamless, potentially allowing you to leave both your card and phone at home.