In an effort to halt the rise of skimmers, cardless ATMs may soon become the norm.
Last week, Jacksonville, Fla. based credit union Vystar announced a pilot program for ATMs that do not require users to insert a debit card in order make a withdrawal. This comes months after Chicago based BMO Harris Bank launched a cardless ATM network.
Recently, the use of credit card skimmers is on the rise. Once only thought to effect magnetic strip cards, newer devices discovered in Mexico suggest that EMV cards may also be at risk. Banks are looking for better ways to keep their customer's information safe. The solution that these banks arrived to is to forgo card use all together.
Though the two banks have similar goals, they're going about it in very different ways. Vystar's system will issue temporary access codes to customers, which will essentially be replacements for their debit cards. Users enter in the access code followed by their debit card PIN and will be allowed to make a withdrawal. Vystar can set time limits for how long each access code is valid and can establish various types of withdrawal limits for further protection.
Harris is taking a more high-tech approach to their implementation. Customers download an application on their mobile devise and link their accounts. From their device, they enter in how much you want to withdraw. This can be done at anytime, not just directly in front of an ATM. When the customer arrives at the ATM, they select the on-screen option for the application interface and then scan a quick response code with their phone through the mobile software. Upon acceptance of the code, the ATM will process the transaction previously stored in the phone.
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