What Is a Cardless ATM? (2024 Guide) (2024)

How Do Cardless ATMs Work?

Each financial institution uses a slightly different method to give you access to its cardless ATMs. You would either go through the bank’s app, or a digital wallet such as Google Pay, Apple Pay or Samsung Pay. Any of these options store your debit card information on your smartphone so you do not need to have access to your physical card.

From there, you would proceed with your ATM transaction as you normally would. To ensure safety and security, these are some of the technologies your bank might employ:

• Near-Field Communication (NFC): This is the same technology you use when you tap to pay with your credit card or phone. NFC allows the ATM to talk to the card stored in your mobile wallet.
• Codes: Some banks have you conduct the entire transaction on your mobile app, then scan a QR code on the ATM terminal with your phone’s camera to confirm. You might also be sent a verification code.
• Biometrics: This technology usually requires you to scan your fingerprint on a reader to verify your identity. Other biometric ATMs may use face or voice recognition, though these are less common.

Although a cardless ATM uses different technology to verify your credentials than a regular ATM, the process of getting your cash is essentially the same. Once the machine verifies your identity and locates your bank account information, the transaction is routed through your bank’s host processor, which requests the transaction on your behalf and debits the correct amount from your account. The ATM then dispenses the correct amount of cash along with a receipt.

>> Related: Learn more about what is an ATM

Pros and Cons of Using Your Phone at the ATM

There are several benefits to using your phone at the ATM, as well as some drawbacks. It’s worth it to consider both sides before deciding whether to take advantage of this service.

Pros

• More convenient: It takes less time to conduct your business at the ATM — often just seconds before you have your cash in hand.
• Safer: Thieves have a harder time stealing credentials as the data exchanged via NFC is usually encrypted, and biometrics are difficult to fake.
• Extra layer of protection: You get more protection with your phone because you must sign in with a username/password, a pattern or facial recognition.
• More sanitary: You have little to no physical contact with the machine (and all the other hands that have touched it previously).

Cons

• Compatibility issues, Part 1: Cardless ATMs are generally offered by banks rather than third parties. So, your Chase debit card might not work at a Bank of America ATM.
• Compatibility issues, Part 2: Not every bank works with every digital wallet.
• Check your battery: Debit cards may not have the same degree of security as a phone, but they don’t run out of battery.
• Keep it safe: While the use of cardless ATMs stamps out most potential fraud, if you lose your phone, information could be at risk.

Availability of Cardless ATMs

ATM functionality and availability are becoming increasingly important to banks and their customers.

“Customers are using ATMs more than in previous years,” said Lonnie Talbert, CEO of the ATM Industry Association (ATMIA). “With the closing of bank branches, ATMs become even more important for customers to gain access to their cash.”

With thousands of cardless ATMs being deployed all over the country from many major banks, this cardless functionality is becoming more common.

The following are some of the prominent banks that offer cardless ATMs:

• Bank of America (find a Bank of America ATM near you)
• Wells Fargo (find a Wells Fargo ATM near you)
• BMO
• Chase (find a Chase ATM near you)
• Capital One
• Fifth Third Bank
• PNC (Coming soon) (find a PNC ATM near you)

However, not every bank offers cardless ATM access in every area. Some (like Wells Fargo) have a robust cardless ATM network, but others (like PNC) are still making this functionality available. The best way to see if your bank has a cardless ATM nearby is to search for locations in your bank’s mobile app.

Using a Cardless ATM

There is some variation between banks, apps and ATMs as to how using a cardless ATM works, but here’s a step-by-step rundown of what you can expect.

1. Set up digital access on your phone: Load your debit card into your digital wallet. Make sure the digital wallet on your phone or mobile device is supported by your bank. You should do this before you go to the ATM.
2. Tap your phone: Look for the contactless payment symbol on the ATM and hold your phone near it to activate the NFC exchange.
3. Enter your PIN: The ATM may prompt you to use the PIN pad or you may have to enter it on your phone, depending on the bank.
4. Choose how much cash to withdraw: This process is the same as it is with a normal ATM.
5. Take your cash and receipt: Make sure to check your receipt and that you’ve received the correct amount of money.

Some banks (like Chase) allow you to schedule an ATM withdrawal from their banking app. You conduct the entire transaction in the app, and you have 24 hours to go to the ATM and withdraw your cash. Transactions like these often use a QR code that you scan with your phone’s camera to complete.

>> Related: Learn more about depositing cash at an ATM

Security Considerations

Cardless ATMs are very secure. Still, no transaction is 100% foolproof, so it’s important to take basic security precautions at cardless ATMs.

“Always protect your PIN,” Talbert said. “Do not make it too easy to guess. Lock your card immediately if it is lost, stolen or compromised. You should also check your account statement at least monthly for suspicious charges.

“Also, your bank will never call and ask you for your personal information, including your PIN. If you receive a call from your bank regarding ATM fraud, make sure you’re actually talking to the bank, and call your local branch for support if you need it.”

When you can, use two-factor authentication to access your banking information (i.e., a fingerprint and a PIN).

Skimming

Normal ATMs are prone to “skimming,” a type of fraud where thieves install false facades on top of the machine that look like a part of it. The facade records the information from the debit card when it’s inserted, often aided by a pinhole camera that records the PIN.

Cardless ATMs circumvent skimming efforts because the ATM verifies your card credentials using NFC instead. Using your phone adds an extra layer of protection because any would-be thieves need to unlock your phone before using it.

The Bottom Line: Cardless ATMs

Cardless ATMs offer a quick, convenient way to access cash in your checking account without having to use a physical card. Cardless ATM transactions are faster than traditional ATM transactions, more convenient, more sanitary and offer additional security.

They do come with some drawbacks, as not all ATMs have a cardless option and you must be sure the ATM you’re using is compatible with your digital wallet.

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.