How to Use a Cardless ATM: A Step-by-Step Guide

A cardless ATM allows you to withdraw cash from your bank account without using a debit card. While these ATMs may look like regular ATMs and still have a slot to insert a debit card, they have the technology to identify an account holder without a debit card. To get cash without a debit card, you generally need a smartphone, the bank’s app, and a checking account that supports cardless cash.

What Are Cardless and Contactless Withdrawals?

Thanks to technology, you can often withdraw money from an ATM without a debit card and instead use your cell phone. This is good news for those who don’t like to carry around cards or would rather not have to search through their wallets to find the right card when they get to an ATM.

Cardless withdrawal allows you to use an app (an important part of traditional and online banking these days) to get your cash. Cardless ATMs use different types of technology (such as QR codes, NFC, and biometrics) to securely identify an account holder and dispense their cash without the presence of a debit card. Below, take a closer look at how exactly this works.

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2 Ways to Get Cash From a How a Cardless ATM

How to do a cardless withdrawal? First, you’ll need an ATM that has cardless access and a bank account that allows cardless cash. Then, you’ll follow these steps.

Method 1: Using Your Banking App and a QR Code

With your phone, you initiate a withdrawal using your bank’s mobile app. There’s variation in how these apps work: The bank may send you a code to plug into the ATM or one that you can scan at the ATM. Either way, you need to press the cardless ATM acceptance mark. You’ll then be prompted to enter a code or scan the QR code on the ATM screen.

Next, you’ll see if any ATM fees are associated with the transaction. Then, you can accept and authenticate the transaction (which may involve using your phone’s biometrics, which are typically, fingerprints, voice recognition, iris scanning, or face recognition). You can also choose to decline and cancel the transaction. If you move ahead, the ATM receives authorization of the transaction and issues the cash you requested — no card needed.

Method 2: Using Your Mobile Wallet (Tap to Pay)

Another option is to use a contactless payment or digital wallet option like Google Pay or Apple Pay. If you opt for this kind of payment, it will likely use near-field communication (NFC) to connect to the terminal. In this situation, you’ll hold your phone close to the ATM so your phone and the ATM can “talk” to each other. You’ll then be able to access the bank account linked to the app.

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How to Find a Cardless ATM Near You

You can usually find an ATM that’s cardless near you by using the ATM locator via your bank’s app or website. This will typically indicate which are contactless by displaying the contactless/NFC symbol. Another option is to use basic mapping tools and look for an ATM that is identified as contactless.

What Are the Benefits of Using a Cardless ATM?

For sure, there are some upsides to being able to get cash without your debit card. Here are some to consider.

You Don’t Need to Carry Your Wallet

It’s handy to be able to get your cash and conduct other transactions without your debit card. As long as you have your phone, you’re good to go. No need to make a trip back home if you discover when you get to the bank that you left your card at home. Cardless cash also allows you to carry around fewer cards. That can be helpful should you lose your wallet or it gets stolen.

It’s a More Hygienic Way to Bank

Given the concerns about germs that can be transmitted surface to surface, contactless payments (meaning those in which you do not have to insert your card into an ATM ) can be a plus. Less touching of surfaces that have seen a lot of potentially germy fingertips can be a good way to go.

There’s a Lower Risk of Skimming Fraud

You may feel reassured because there’s no chance of card skimming since you’re not swiping your card. What’s more, you may be able to avoid entering your PIN. That’s a plus since you don’t have to worry about hidden cameras or lurkers getting your digits. It can be a good way to add a layer of bank account protection.

Are There Any Downsides to Cardless Withdrawals?

Cardless cash withdrawals also have some downsides. Here’s a closer look.

Not All ATMs Are Equipped With This Technology

Not every ATM has cardless capabilities, and your bank may not have cardless ATMs that are convenient to where you live or work. Before you decide to go the cardless route, you’ll want to investigate what your financial institution offers in terms of cardless ATM access. Also, if you travel frequently, you may not always be able to find a cardless ATM when you need one. While cardless ATMs aren’t rare, they also aren’t everywhere.

Potential for Scams

Your phone will contain additional sensitive information if you go the cardless route. If you lose your phone or it is stolen, that information could be at risk. While there are plenty of safeguards and security measures, like biometric security and two-factor authentication, you’ll want to report a lost or stolen phone to your bank immediately.

Your Smartphone Must Be Compatible

Are you one of those people who stand in long lines for the latest, greatest smartphone release? If you regularly upgrade your phone to the latest model, you’re probably going to do fine with cardless withdrawals. But if you tend to hold onto your phone for a long time, you may need an upgrade that can handle your bank’s app and NFC, when required. Otherwise, your device may not be capable of cardless transactions.

The Takeaway

Cardless withdrawals are another way technology can help simplify your finances. All you need to access the cash in your checking or savings account is a smartphone, your bank’s app, and an ATM — no debit card required. Decide if it’s an important option you’d like to use.

FAQ

Does SoFi offer cardless withdrawals?

At the current time, SoFi does not offer cardless ATM withdrawals. Members need their physical debit card and PIN number to withdraw cash from an ATM.

Can I use Apple Pay or Google Pay at an ATM?

You can typically use Apple Pay and Google Pay at ATMs for cardless cash withdrawals, provided that the terminal is a contactless-enabled ATM. Scan for the contactless symbol, and you can then tap your phone vs. inserting a card, and then enter your PIN.

What if I lost my debit card but need cash?

If you lost your debit card but need cash, first call your bank to report that the card is missing to secure your account and get a replacement. Once you’ve done that, you can use such options as a cardless ATM withdrawal, visiting a bank teller, writing a check to yourself, getting cash back when making a purchase with a digital payment method, or using a service like Western Union to send cash to yourself and then pick it up.

Is it safe to use a contactless ATM?

Using a contactless ATM is typically very safe. The data that is transmitted via near-field communication (NFC) is encrypted, protecting your details. Also, you avoid the risk of unwittingly inserting your card into a skimmer and having your credentials stolen. That said, do stay alert whenever you use an ATM to keep yourself and your finances secure.

Are there withdrawal limits for cardless transactions?

Yes, as with traditional transactions, there are typically withdrawal limits. They are often but not always identical to your standard daily ATM limits, but it’s best to check with your bank to find out. Withdrawal limits can vary by bank, by your account type, and by ATM terminals.

Photo credit: iStock/hsyncoban

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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