At Remitly, we know how important it is to access your money quickly, securely, and on your terms. That’s why we’re here to help you understand every option available, especially when it comes to withdrawing cash, even without your physical credit or debit card.
In this article, we’ll walk you through how cardless ATMs work, where to find them, and how they offer a fast, secure, and flexible way to get cash if and when you need it.
Withdrawing cash without a physical card
We’ve all been there. You walk up to that new restaurant you’ve been wanting to try, and spot a small sign in the window that says cash only. Or maybe you owe your friend a bit of cash, but don’t have the right amount on hand. Worse still, you’ve left your wallet at home.
These moments when you’re strapped for cash happen to the best of us. Luckily, banking is responding to the challenges of our modern world. After all, you might forget your wallet—but when was the last time you forgot your phone?
By developing the possibility for cardless transactions, banks and financial institutions are making it possible to use your phone to access cash—no credit or debit card required. In fact, you might even start leaving your wallet at home on purpose.
What are cardless ATM withdrawals?
Cardless ATM withdrawals let you get cash from an ATM without using a physical debit or credit card. Unfortunately, ATMs aren’t handing out free money. You still have to verify your identity and your banking information. That’s where your phone comes in.
Without a physical card, the ATM will authenticate your personal and financial information via your phone using either a QR code, digital card, or one-time password (OTP). Once verified, you’ll proceed just like a regular ATM transaction, only without needing to insert a card.
Modern banking: security and convenience
It might sound futuristic to use your phone to get money from an ATM, but this technology is already here and it’s built with security in mind.
By involving two pieces of technology, both the ATM and your phone, cardless ATM transactions are secured at two points. The codes developed by cardless ATMs to initiate transactions are single-use and produced on the spot. This means they are more secure than a PIN, which scammers could reuse to access your account multiple times.
Plus, using your phone offers an extra layer of protection, like biometric verification (face or fingerprint recognition) and the ability to remotely lock or erase your phone if it’s lost.
And of course, it’s convenient. With just your phone in hand, you can withdraw cash quickly and easily—no digging through your bag or wallet.
Overview of cardless ATMs
Main functions
The main function of cardless ATMs is cash withdrawal. However, depending on your bank and the ATM you’re using, you might also be able to do a balance inquiry, transfer funds, or deposit cash.
How cardless transactions work
Cardless ATM transactions use one of the following three methods:
- QR code
A QR code or a “Quick Response code” is a two-dimensional barcode that stores digital information in a square shape. When you start a cardless ATM transaction in your mobile banking app, the ATM will produce and display a unique QR code. You scan this code with your smartphone camera to connect your account to the ATM securely. - Digital wallet
Digital debit and credit cards use NFC (near-field communication) technology to exchange information securely. This is the same technology that is used in tap-to-pay services like Apple Pay or Google Pay. At an ATM, simply tap your phone or smartwatch against the NFC-enabled area to initiate the transaction. - One-time password
Some ATMs use a one-time password, a temporary numeric code generated by your bank or the ATM itself. You’ll enter this code into your banking app or on the ATM screen to verify your identity and begin your transaction
Step-by-step guide to using a cardless ATM
Cardless ATMs are popping up everywhere, but how exactly do you use one?
We’ll walk you through the process step-by-step, so that you’re ready to go when you arrive at the ATM. It’s useful to know the process ahead of time so you’re not fumbling at the ATM.
Although the steps for using a cardless ATM may vary depending on the ATM and your bank, the general process looks like this.
Get your mobile banking app ready
In order to make a cardless cash withdrawal, you’ll need to access the banking app on your phone. Head to your device’s app store, download the official app, log in, and set up any necessary security features like biometrics or two-factor authentication.
From here, you can either:
- Download your debit/credit card to your digital wallet (if supported), or
- Find the cardless withdrawal or ATM access option in the app
Initiate a cash withdrawal
If you’re using a digital credit or debit card, simply activate it on your mobile device. If you don’t have a digital card, head to your bank’s mobile app and find the option for cash withdrawal.
Take both of these actions when you’re at the ATM and ready to proceed.
Tap or scan at the ATM
At the ATM, look for the cardless symbol, which is typically three radiating lines similar to the Wi-Fi symbol. This is usually found on a square or circular touch-point that is often raised. Tap or scan your phone or smartwatch here and enter your PIN to complete the transaction.
If you’re not using a digital card, the ATM might produce a QR code or one-time password for you to enter into your banking app to complete the process.
Benefits of cardless withdrawals
Understanding all of your banking options is a key factor in your financial health. It’s normal to feel a little unsure about new financial technologies, but cardless ATM withdrawals come with real advantages that might just win you over.
Security comparison: cardless vs. traditional
Cardless transactions are more secure than traditional ATM transactions simply because you have to identify yourself with both your phone and the ATM. Here are some additional security benefits of cardless transactions.
Biometric verification
Because you use your phone during a cardless ATM withdrawal, it’s typically already set up to scan your face or fingerprint. Traditional ATM transactions aren’t guarded by biometric verification. This level of digital safety makes cardless transactions more secure.
Faster transactions
Many users find that cardless transactions take less time than traditional ones. This is often thanks to biometric access on your phone and banking apps. Faster transactions mean less time lingering at the ATM.
No risk of skimming
Many scammers use skimming devices to capture your physical card’s information when inserted into a payment machine or ATM. By removing the need for a physical card, cardless ATM withdrawals eliminate the chance of skimming.
No need to carry your wallet
Jokes aside, you might actually decide to stop carrying your wallet altogether once you get the hang of cardless ATM transactions. This massively reduces your chances of getting pickpocketed.
Convenience and accessibility
A major plus of cardless banking is that you can access all your accounts and cards without lugging around a wallet bursting at the seams. This will allow you to access all of your different cards and accounts at any time.
Cardless withdrawals also improve accessibility for people with disabilities. For visually-impaired people, using a smartphone with a screen reader or voice controls makes navigating cardless options easier than handling a physical card. For individuals with limited mobility, fewer physical interactions, such as inserting and retrieving a card, can make the ATM experience simpler and faster.
In terms of accessibility, most new ATMs are equipped with cardless technology. Look for the cardless symbol or use your online banking app to find compatible ATMs. Popular US banks that offer cardless ATM access are Chase, Wells Fargo, Capital One, and Bank of America.
Exploring the future of cardless banking
Back in 2021, the Wall Street Journal reported that, “Wallets are over. Your phone is everything now.” With the popularization of cardless transactions at both ATMs and at points of sale, banking has started the push towards the digitalization of our pockets and purses. Banks will likely continue to provide more and more transaction options via your phone. Plenty of banks have completely ditched brick-and-mortar buildings and operate completely online.
Work IDs, driver’s licenses, and other cards will likely be digitized soon as well. Then, truly, all we’ll need to walk out the door in the morning is our phone.
FAQs
Can you withdraw from an ATM without a physical card?
Yes, provided your bank and the ATM are compatible with cardless withdrawals.
Do I need a banking app to make cardless ATM withdrawals?
Not necessarily. If you’ve downloaded a digital card to your mobile device, this is all you’ll need to carry out a cardless ATM withdrawal. If you don’t have a digital card, then you’ll have to navigate your app during the withdrawal process.
Are all ATMs equipped with cardless withdrawal capabilities?
Unfortunately, no. To find an ATM that is equipped with cardless withdrawal capabilities, look for the cardless symbol on the ATM itself, use your online banking ATM locator, or navigate to a location where you’re likely to find a newer ATM, like a major US bank branch.