What is a cardless ATM, and how does it work?

A cardless ATM is an ATM that doesn’t require a physical debit card. Instead, you use your mobile device to initiate a transaction. In a world where many people don’t go anywhere without their phones, cardless ATMs make it convenient to withdraw cash on the go — even when you leave your wallet behind.

While cardless ATMs are convenient and simple to use, not all banks offer them. Learn more about how a cardless ATM works, its pros and cons, and a few examples of banks that offer this feature.

What is a cardless ATM?

A cardless ATM lets you withdraw cash without inserting a physical debit or ATM card. Instead, you can use your phone’s digital wallet or your bank’s mobile app to access your account and transact at an ATM. Cardless ATMs let you make all the same transactions as a regular ATM; the only real difference is how you access your account.

How do cardless ATMs work?

As with other types of contactless payments, cardless ATMs may use several technologies to access your account information and verify your identity:

  • Near-field communication (NFC): NFC is a technology that transmits information between two devices within close range. When you make contactless payments with your smartphone, for example, you’re using NFC. With a cardless ATM, you can tap your phone to the machine’s contactless symbol after initiating the transaction on your phone.

  • Quick response (QR) codes: Some ATMs may have QR codes that, when scanned with your phone’s camera within your bank’s mobile app, allow you to transact without a physical card.

  • Biometric verification: Biometric verification involves using facial, fingerprint, or another form of physical recognition to verify your identity. Some banks may use this technology to confirm your identity when using a cardless ATM.

  • Mobile app codes: Some banks may provide you with a one-time verification code when logging into their mobile app. You can then use this code to initiate a cardless ATM transaction.

How do you use a cardless ATM?

Regardless of which technologies a cardless ATM employs, you’ll generally use one by following these steps:

  1. Before beginning a transaction, download your bank’s mobile app or add your debit card to your mobile wallet.

  2. At the ATM, log in to your bank’s app on your phone or open your mobile wallet. Select the account you want to withdraw from or deposit into. If using your mobile wallet, choose the card you want to use.

  3. Tap the ATM’s contactless symbol with your mobile device, enter the verification code in your bank’s app, or scan the QR code on the ATM. If prompted, follow the steps to verify your identity.

  4. Enter your PIN.

  5. Finish the transaction.

Are cardless ATMs safe?

Cardless ATMs are generally considered safe. In some ways, they may be more secure than regular ATMs.

Without the need to physically insert a card into the machine, scammers can’t skim your card information. Cardless ATMs may also require multi-factor authentication or biometric verification — both of which make it difficult for scammers to access your account. Plus, codes you receive from your bank to initiate an ATM transaction are one-time codes that usually expire within a short period of time.

But cardless ATMs aren’t without safety concerns. If you don’t have the right protections in place on your phone, someone could access your accounts if they have your phone, without needing to get their hands on your wallet.

Read more: Guide to ATM safety: Tips for protecting yourself and your money

Pros and cons of cardless ATMs

Like any new technology, cardless ATMs have benefits and challenges.

Pros

  • Convenience: Having access to a cardless ATM means you don’t need to carry your wallet around to access a machine. Instead, you only need your phone.

  • Ease: Cardless ATMs are easy to use, especially because you may already be used to using your phone for other types of transactions. All you need to do is scan a QR code, tap your phone on the machine, or enter a verification code to initiate your transaction.

  • Hygiene: While you may still have to enter your PIN by touching the machine, a cardless ATM reduces physical contact and the potential spread of germs.

  • Security: Cardless ATMs provide added security. Without using a physical card, scammers can’t skim card information. And biometric verification and one-time codes make it harder for someone to access your accounts.

Cons

  • Reliance on your phone: Relying on your phone for ATM access may create problems if your phone runs out of battery or glitches. Plus, it’s always possible to lose your phone.

  • Availability: Cardless ATMs aren’t always available or convenient. Some banks and credit unions — especially smaller institutions — don’t offer this feature.

  • Compatibility: You need the right technology, including your bank’s app. And for that, you need a smartphone that’s compatible with your bank’s app.

Banks that have cardless ATMS

Several well-known banks offer cardless ATMs. Chase, Bank of America, Wells Fargo, Capital One, and Fifth Third Bank are just a few examples.

Some credit unions offer cardless ATMs too. Examples include Michigan First Credit Union, First Commerce Credit Union, and People’s Community Federal Credit Union. Keep in mind not all financial institutions offer cardless ATMs, and smaller banks and credit unions are less likely to have them.

Read more: What is a reverse ATM?