How Do Cardless ATMs Work? Pros and Cons | Bankrate (2023)

Cash transactions are on the decline in the digital age, so quick and convenient access to cash may not be something that’s often on your mind. But when you need it, it’s nice to have.

Cardless ATMs allow you to transact ATM business on your smartphone’s bank app. They’re a convenient way to get money from your bank account if you forget your debit card or if you prefer to minimize the number of times you need to touch an ATM’s screen.

What are cardless ATMs and how do they work?

Cardless ATMs provide access to your account and allow you to withdraw cash without the need for a card. Instead, they rely on account verification via text message or a banking app on your smartphone.

There are several ways that cardless ATMs can function. Types of cardless technology include quick response (QR) codes, near-field communication (NFC), verification codes and biometric verification.

(Video) Use your phone instead of a card at the ATM (CNET News)

QR Codes

To use a cardless ATM with a QR code you first set the mobile withdrawal up on your banking app. The ATM will then display a QR code on the screen for you to scan with your phone before dispensing the money.

Near-field Communication (NFC)

Some services like Apple Pay use NFC, or near field communication, technology. To use NFC at a cardless ATM, open the app on your mobile device, choose the linked bank account you want to withdraw from and tap your phone against the designated reader. To complete the transaction, the ATM will prompt you to type in your PIN (just as if you had inserted your card).

Verification codes

Using a verification code involves opening the bank’s app on your phone and selecting the type of ATM transaction you’d like to perform. The app then provides a one-time code you’ll enter at the ATM as well as your PIN. The code usually expires after a set amount of time, such as 30 minutes.

Once you enter the verification code, your transaction will take place, which can mean the ATM will dispense the amount of money you indicated you wish to withdraw.

(Video) ✅ How To Use Chase Cardless ATM Withdrawal With Apple Pay Wallet 🔴

Biometric verification

You may use biometric verification to unlock your smartphone by having it recognize your face or fingerprint. Similarly, some banks can store your biometric data so their ATMs can use them to verify your identity for future transactions. This allows you to withdraw cash or perform other functions without having to provide your card.

Pros of using cardless ATMs

1. Simplicity

“Our phone is slowly becoming our wallet,” says Drew Cheneler, founder of SimpleMoneyLyfe. Some consumers don’t memorize their account information and rely on facial- or fingerprint recognition to access their accounts, he says. Some cardless ATM software allows you to do the same.

2. Access to all your accounts

You might not carry all your ATM cards with you, especially if you use more than one bank. Cardless ATMs allow you to still have access to all of your accounts, which can be helpful if you are near an in-network ATM, yet don’t have the corresponding card with you, saving you from having to pay nonnetwork ATM fees.

3. No need to carry a wallet

It isn’t always convenient to carry a wallet, purse or something else containing your cards. Cardless ATMs allow you to perform transactions if you have your smartphone. Another benefit of not carrying your wallet is it can reduce your chances of getting pickpocketed or robbed.

(Video) ✅ How To Use Wells Fargo Cardless ATM Withdrawal With Apple Pay Wallet 🔴

4. Security

Though they aren’t risk-free, a few features of cardless ATM withdrawals make them more secure. For starters, scammers can’t use skimmers to steal your card data because you don’t insert your card into the ATM terminal. Codes generated for cardless withdrawals are one-time use only, so it does a hacker little good to steal one. Cardless withdrawals also often require two-step authentication, so hackers wouldn’t only need to know your PIN, but they would also need to have access to your phone.

5. A more sanitary option

Cardless ATM withdrawals won’t eliminate the need to touch the ATM, yet they do cut down on contact. And the fewer touches the better, considering how many users might touch an ATM and spread germs between cleanings.

Cons of using cardless ATMs

1. Availability

Cardless ATMs aren’t available everywhere. Even if your bank provides the service and your phone is compatible with the technology, you might not find an ATM near you that’s capable of handling cardless withdrawals.

2. Compatibility

Cardless ATMs rely on smartphones to operate. If your bank utilizes an app, your phone must be compatible with that app, or you can’t use it.

(Video) Chase ATM - Cardless Access: How To Use Chase ATMs With Your Mobile Wallet

3. Phone Security

Though cardless ATM transactions are generally more secure, they pose a different set of risks.

“Since bank cards are being replaced by phones, criminals will now be more enticed to target and hack your phone to mine your data, information and even change your phone and bank app settings,” says Ricardo Pina, founder of The Modest Wallet. You can minimize risk by keeping your phone secure if you have banking apps installed.

Popular accounts with cardless ATM access

Chase, Wells Fargo and Bank of America are all compatible with Google Pay, Apple Pay and Samsung Pay. Since cardless ATM apps from these banks work on each of these three services, they are compatible with both Android and Apple phones.

  • Chase: Chase provides cardless ATM service with consumer debit cards (excluding CPC Privileges card) and business debit cards (excluding Business Associate cards).
  • Wells Fargo: Wells Fargo Debit and EasyPay cards can be linked to a digital wallet and used with cardless ATMs.
  • Bank of America: Contactless transactions can be made using a Bank of America debit card at all the bank’s ATMs.

Bottom line

Cardless ATMs are a convenient, secure and more sanitary way to withdraw cash without a card. They’re also handy for emergencies — even if you don’t use them regularly.

(Video) What is Cardless ATM

–Staff writer Karen Bennett contributed to this article.


How does cardless ATM work? ›

Cardless ATMs provide access to your account and allow you to withdraw cash without the need for a card. Instead, they rely on account verification via text message or a banking app on your smartphone.

Is cardless ATM safe? ›

Cardless ATMs let you use an ATM without inserting a debit card. You may use your bank's mobile app or a contactless card at a cardless ATM. Cardless ATMs are safe to use and involve verification processes to access your bank account.

Do cardless ATMs work with any bank? ›

Not universal: Not every ATM may offer cardless access, and your bank may not have cardless ATMs near you. Still has security concerns: Losing your phone can result in additional headaches when your money is at risk.

What are the advantages of ATM card? ›

Debit Cards
  • Easy to obtain. Once you open an account most institutions will issue you a debit card upon request.
  • Convenience. Purchases can be made using a contactless or chip-enabled terminal or by swiping the card rather than filling out a paper check.
  • Safety. ...
  • Readily accepted.

Do you need PIN for cardless ATM? ›

Cardless ATM transactions require the mobile wallet and an ATM PIN to complete the ATM transaction. In addition, we recommend you use the security features available on your phone.

What banks dont do cardless cash? ›

Currently, cardless cash is only offered by Westpac, St. George, Bank SA, Bank of Melbourne and CommBank.
What is cardless cash and how does it work?
  • Correct transaction account. ...
  • Select cardless cash in your mobile banking app. ...
  • Receive your unique code. ...
  • Locate a cardless cash ATM.

How much does a cardless ATM cost? ›

No additional cost to use.

Withdrawing money from a cardless mobile app is just like using a debit card. As long as you're using a cashless ATM that is within your bank's network, you will not be charged any fees.

Why do you get cardless cash withdrawals? ›

What is Cardless Cash Withdrawal? A Cardless Cash Withdrawal transaction enables you to transfer cash from your HDFC Bank account to anyone with a valid domestic mobile number across India. The beneficiary can withdraw the amount from any specified HDFC Bank ATM without having to use a Debit or a Credit card.

Can you pull out money at ATM without card but phone? ›

Some ATMs use NFC to conduct cardless transactions. With this type of cardless ATM, you tap your phone against the ATM's contactless symbol and your phone's digital wallet pulls up. From there, you select which card you want to use from your wallet and enter your PIN. Then, the ATM authenticates your transaction.

Do all ATMs do cardless cash? ›

You can't get cardless cash from any ATM. Just the ATMs owned by your own bank.

Can someone withdraw money with my card number? ›

Each of these cards has a card verification value (CVV) printed at the back or front of the card and with access to the cards' CVV, full card number, customer name and expiry date, fraudsters can conveniently wipe out money from customers' bank accounts by using the details to engage in online transactions with other ...

What are the advantages and disadvantages of ATM card? ›

Very convenient to use: One of the advantages of a debit card is that it can be swiped for transactions as well as withdrawal of cash from ATMs. No more debts: When you have a credit card, you are more likely to make impulsive purchases. But a debit card keeps you in check as it is linked to your bank account.

What is ATM advantages and disadvantages of ATM? ›

So customers have access to their bank accounts all the time and they can withdraw their money at any time as per their convenience or in case any emergency arises. Reduce Bank Workload: ATMs provide customers with some facilities that are available in banks so customers can avoid visiting the bank that saving time.

How long does cardless cash PIN last? ›

How does the bank ensure Cardless Cash transactions are secure? As a security measure, the Recipient will receive two sets of information: a Cash Code and a Transaction ID. This data will only be available for a 48 hour period, after which, the Cash Code and Transaction ID will expire.

What is needed for a cardless ATM? ›

How Do Cardless ATMs Work? Cardless ATMs—or contactless ATMs—allow you to access your account and withdraw money without a physical card. To use the cardless option at the ATM, you'll typically need your financial institution's app or your card information stored in your digital wallet.

How do I use my phone at a cardless ATM? ›

You can use a digital wallet at an ATM that uses NFC technology to conduct cardless transactions. To use your digital wallet, you tap your phone against the contactless symbol on the ATM, and your phone's digital wallet will open. From there, select the card you'd like to use, and enter your PIN.

What happens if you don't collect cardless cash? ›

Provided the funds have not been collected at the ATM they will be returned shortly after the Cash Code is cancelled or expires.

How many times can you do cardless cash? ›

The daily withdrawal limit for Cardless Cash is $500. There is no limit on the number of transactions per day provided the total amount withdrawn that day does not exceed $500 or your NetBank transfer limit.

Does cardless cash expire? ›

Yes. Your transaction can be cancelled within 48 hours once the Recipient has not completed the cash withdrawal. The transaction will automatically expire after 48 hours.

Can you withdraw from ATM with no money? ›

If you choose to opt in to debit card and ATM overdraft, you are usually allowed to make ATM withdrawals and debit card purchases even if you do not have enough funds at the time of the transaction. However, you will generally incur fees on transactions that settle against a negative balance later.

Can I withdraw cash with contactless? ›

Our new contactless cash service lets you use your contactless debit card or Android smartphone to withdraw cash. You can take out different amounts, depending on the method you use and your daily limits – it's quick, easy and you don't need to insert your card.

Can someone get into your bank account with your card number? ›

Stolen card information on its own constitutes identity theft. But if your card is hacked, you should assume you're a victim of other types of identity theft as well. Details like your card number and expiration date usually aren't enough information to hack into other accounts.

Can someone access my bank account with my phone number? ›

If someone steals your phone number, they become you — for all intents and purposes. With your phone number, a hacker can start hijacking your accounts one by one by having a password reset sent to your phone. They can trick automated systems — like your bank — into thinking they're you when you call customer service.

Can someone withdraw money from my bank account if they know my account number? ›

The good news is, if someone only has your bank account number, that won't give them enough intel to do any damage. Take comfort in knowing that no one will be able to withdraw money in your account if all they have is your account number.

What are the disadvantages of using an ATM card? ›

Cons of debit cards
  • They have limited fraud protection. ...
  • Your spending limit depends on your checking account balance. ...
  • They may cause overdraft fees. ...
  • They don't build your credit score.

What are the pros and cons of card? ›

The Pros And Cons Of Credit Cards
  • Pro: They're a Great Way to Build Credit. ...
  • Con: High Cost of Borrowing. ...
  • Pro: They're More Secure Than Cash. ...
  • Con: It's Easy to Dig Yourself into a Hole. ...
  • Pro: Rewards Points. ...
  • Con: Applying for Too Many Credit Cards Can Damage Your Credit.
Feb 15, 2019

What are 3 advantages and 3 disadvantages of using a credit card? ›

Advantage & Disadvantage of Credit Card
  • Easy access to credit. The biggest advantage of a credit card is its easy access to credit. ...
  • Building a line of credit. Credit cards offer you the chance to build up a line of credit. ...
  • EMI facility. ...
  • Incentives and offers. ...
  • Flexible credit. ...
  • Record of expenses. ...
  • Purchase protection.

What are the pros and cons of online banking? ›

Despite the rising virtual presence of traditional banks, online-only competitors still offer some clear advantages for consumers.
  • Better Rates, Lower Fees.
  • Better Online Experiences.
  • No Personal Relationships.
  • Less Flexibility With Transactions.
  • The Absence of Their Own ATMs.
  • More Limited Services.

Do ATM machines ever make mistakes? ›

While ATM errors don't happen every day, when they do occur, the problems they create can be a headache if you have to wait for your checking account to be updated with the correct balances.

What are the benefits of a banks with free ATM services? ›

The Benefits Of A Bank With Free ATM Service
  • Avoid the secondary fee (an additional $1 to $3) one's own bank may charge for not using the bank's ATMs.
  • Get cash back after using the ATM card for purchases and bypassing fees.

Do all ATMs work with any bank? ›

Although you can withdraw funds from any bank's ATM, you must have an open and active account with that particular bank to use their ATM to deposit a check. Third-party, out-of-network ATMs typically do not accept deposits for accounts at other banks.

Can I use cardless ATM with chime? ›

Does Chime Offer Cardless Withdrawals? No, Chime doesn't offer cardless ATM withdrawals, meaning you cannot withdraw money from Chime if you don't have your debit card on you.

Is there a difference between an ATM card and debit card if so what is it? ›

The difference between ATM and debit cards boils down to their utility. An ATM card can only be used to withdraw cash from ATMs. At the same time, a debit card, in addition to withdrawing funds from ATMs, can also be used to make other transactions such as domestic and international purchases, bill payments, etc.

Who has the cheapest ATM fees? ›

5 Best Banks to Avoid ATM Fees
  • Citibank: Best brick-and-mortar bank for free domestic ATM access.
  • LendingClub: Best online bank for free domestic ATM access (tie).
  • Axos Bank: Best online bank for free domestic ATM access (tie).
  • Consumers Credit Union: Best credit union for free domestic ATM access.
Feb 4, 2022

How can I get cash without paying ATM fees? ›

An ATM owned by your bank or credit union, or one that's within the bank's partnered ATM network (such as Allpoint or MoneyPass), won't charge the out-of-network fee. To find an in-network ATM, try using an ATM locator on the bank's mobile app or its website.

Can you use tap to pay at ATM? ›

Just tap your card where you see the Contactless Symbol—it's even easier than swiping or inserting your card. At a Wells Fargo ATM, tap your contactless debit card and then enter your PIN to get cash, view account balance, and more.

Is Walgreens ATM free for Cash App? ›

Cash App provides unlimited free withdrawals, including ATM operator fees, for customers who get $300 (or more) in paychecks directly deposited into their Cash App each month.

Can I withdraw money from my Walmart money Card without my card? ›

You can withdraw money from a lost Walmart MoneyCard using the app to pick up cash at Walmart. All you have to do is go to the Manage Card section in the app and follow the prompts to generate a time sensitive barcode that allows you access to pick up cash at Walmart.


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