What Is a Cardless ATM and How Does It Work?

A cardless ATM (sometimes called a contactless ATM) is exactly what it sounds like: a way to get cash without needing to insert your physical debit card. Instead of a card, these machines use different forms of technology to connect to your bank account, usually through a mobile wallet or your bank’s app on your smartphone.

You can do all the same things you’d do at a regular ATM, like withdraw cash, check your balance, and make transfers. It’s just a more modern, convenient way to do it!

Cardless ATMs rely on a few pieces of tech to securely verify your identity. Here are the most common ways they work:

Near-Field Communication (NFC)

This is the same ‘tap-to-pay’ technology used in services like Apple Pay^® and Google Pay^®. To use it, you just open your mobile wallet, select your card, and hold your smartphone near the contactless symbol on the ATM.

The machine reads your card info wirelessly, and then you’ll usually enter your PIN to verify and complete your transaction.

QR and Verification Codes

Some ATMs will show a QR code on the screen that you can scan.

Typically, you’ll open your banking app, scan the code with your phone’s camera, and follow the prompts. Other times, your app might give you a special one-time code that you type into the ATM to prove it’s you before getting cash.

Biometrics

It might feel like living in the future – some ATMs use biometrics like a fingerprint or facial scan to verify your identity. The ATM compares your scan to the data your bank has on file, and if it’s a match, you’re in.

Ready to try it? The exact steps can differ a bit depending on your financial institution and the ATM, but here’s the general process. It’s super simple!

1. Open your banking app or mobile wallet. Once you’re at the ATM, open your mobile banking app or your phone’s digital wallet (like Apple Pay or Google Pay) and select the card you want to use.
2. Tap or scan to connect. If the ATM uses NFC, tap your phone on the contactless symbol. If it uses a QR code, scan it with your phone. Just follow the instructions on the screen.
3. Enter your PIN and complete the transaction. After the ATM verifies your phone, you’ll likely be asked to enter your debit card’s PIN on the keypad. From there, just proceed with your withdrawal or other transaction like normal.

Many major financial institutions offer cardless technology. The list is always growing, but you can generally find cardless access at many ATMs from banks like:

• Bank of America^®
• Chase^®
• Wells Fargo^®
• BMO^®

Other regional banks and credit unions are also adding this feature for members. The best way to find one is to check your own bank’s mobile app, which often has an ATM locator that can filter for ‘cardless’ or ‘contactless’ options.

Like any technology, cardless ATMs have some great benefits and a few considerations to keep in mind. Here’s a quick breakdown:

Pros of cardless ATMs

• Enhanced security: Without a physical card slot, there’s less risk of your card information being stolen by devices like credit card skimmers
• Convenience: Left your wallet at home? No problem. As long as you have your phone, you can still access your cash.
• Speed: Tapping your phone or scanning a code can be quicker than finding and inserting a card.

Cons of cardless ATMs

• Limited availability: While the number of ATMs equipped with cardless technology is growing, there may not be one close by.
• Tech dependency: You need a charged smartphone with an internet connection to use a cardless ATM. If your battery dies, you’re out of luck without your physical card.

While Chime doesn’t yet offer cardless ATM options, we do prioritize member safety and security with features like two-factor & fingerprint authentication, instant transaction alerts, and the ability to freeze your card if lost or stolen.

So, should you start using cardless ATMs? If you love the convenience of using your phone for everything and want an extra layer of security, give it a try. It can definitely save you from that “Oh no, I forgot my wallet!” moment.

However, since the technology isn’t universal, try to keep your physical debit card handy as a reliable backup.

For more tips on accessing money without spending money, check out our guide on understanding ATM fees and how to avoid them