Introduction

In today’s fast-paced world, convenience is key. One of the latest innovations in banking technology is the cardless ATM. This guide will walk you through how cardless ATMs work, their safety features, and the pros and cons of using them. If you have any mortgage service needs, don’t hesitate to contact O1ne Mortgage at 213-732-3074.

How Do Cardless ATMs Work?

Cardless ATMs, also known as contactless ATMs, operate similarly to contactless payment terminals you might find at a grocery store or pharmacy. To perform a transaction, you simply hold your digital wallet, mobile banking app, or contactless-enabled card up to the payment terminal and authorize the transaction.

Many major banks offer cardless ATMs, making them increasingly accessible. Here’s a detailed look at their capabilities and security measures.

How to Use a Cardless ATM

There are three primary methods to complete a cardless ATM transaction:

1. Use Your Mobile Banking App

First, log in to your mobile bank account on your phone and request a withdrawal or ATM access. Next, scan the QR code displayed on the ATM or enter the one-time access code that appears on your phone. You may also need to enter your PIN. Authorize the withdrawal with your phone, and get your cash from the ATM.

2. Scan the Debit Card Saved to Your Digital Wallet

Add your debit card to your phone or wearable device’s digital wallet, such as Apple Pay or Google Pay. Open your digital wallet and select your debit card. Hold your phone up to the cardless icon on the ATM. From there, use the ATM as you normally would and authorize the transaction by entering your PIN.

3. Tap Your Debit Card

This isn’t a cardless method, but you don’t have to insert your card. Instead, tap your contactless-enabled debit card near the ATM’s contactless symbol and enter your PIN to make a transaction.

Are Cardless ATMs Safe?

Cardless ATM transactions are just as safe as traditional ATM transactions, and they could even be safer. Using your physical debit card less frequently means fewer opportunities for it to get left behind, lost, or stolen. Contactless ATMs are less prone to card skimming or shimming, where a physical device installed inside the ATM steals data from your card’s magnetic stripe or EMV chip.

If you use a digital wallet, your card information isn’t stored directly on your phone, and encryption technology makes it more difficult for fraudsters to access your personal data. However, it’s crucial to strengthen your passwords for mobile banking apps, digital wallets, and your phone itself to protect your sensitive information.

Pros and Cons of Cardless ATMs

Pros

• Quick transactions
• No need to carry your physical debit card
• Less potential for falling victim to skimming or shimming scams

Cons

• More reliance on your smartphone or wearable device
• Increased need for mobile security
• You may need to install a particular app to use it

Can I Do Cardless Cash at Any ATM?

Not all ATMs are cardless. You’ll see the contactless symbol on the ATM if it offers cardless withdrawals. Many large banks and credit unions, including Bank of America, Capital One, Wells Fargo, and Chase, offer cardless ATMs. Ensure your debit card is contactless-enabled before using it at the ATM or adding it to your digital wallet.

The Bottom Line

Cardless or contactless ATMs offer quicker and easier withdrawals and other ATM transactions. They also reduce the need to carry around your debit card, potentially preventing it from getting lost or stolen. While it can be safer to use a digital wallet or banking app to access the ATM, make sure to protect your bank account from fraud and prevent identity theft by using unique passwords and securing your phone or other wearable device with a passcode.

If you have any mortgage service needs, O1ne Mortgage is here to help. Call us at 213-732-3074 to speak with one of our expert loan salespersons today!