After decades of continuous development, ATMs come with many changes. One big change comes with debit cards — the addition of EMV chips in the US. — yet another skip cards altogether, while some banks are running cardless ATMs
This technology aims to prevent fraud in a world where data breaches and card compromises affect millions of consumers. While EMV has been around in other states for nearly a decade and will be available nationwide in the next few months, it’s not uncommon to come across ATMs that you can use without a debit card.
Depending on where you invest, it can be a choice. Financial services firm Fiserv completed a cardless ATM pilot program with VyStar Credit Union in Jacksonville, Fla., allowing members to withdraw cash at participating ATMs using secure access and a PIN as a rule memorizing them isn’t your thing if , then it’s probably not for you the best way to use a card, but it can be a safe way to use an ATM. ATM skimmers — devices in ATMs that capture card data so criminals can steal it — are costing consumers billions of dollars worldwide, according to estimates
Of course, some ATM skimming is done with small code-capturing cameras embedded in the machine number plate, so leaving a card to punch in certain numbers doesn’t completely prevent theft yet, if you forget from yours, if you need a card at home or waiting to be exchanged (a common occurrence after a data breach), so there are benefits beyond security from using a cardless ATM
Some banks in the Midwest have started offering similar services, but customers are using their smartphones to replace the role of debit cards in ATM transactions. BMO Harris installed hundreds of cardless ATMs in the Chicago area earlier in 2015, and Wintrust Financial rolled out cardless ATMs in the Chicago area and southern Wisconsin around the same time, reported the Chicago Tribune. Both setups require the consumer to pull up a QR code on their smartphones (this requires cellphone reception or Internet access), and the ATM scans that code in lieu of the customer swiping a debit card. Prior to scanning the code, users set how much they wish to withdraw using a mobile banking app.Whether these tools improve ATM security is unclear (as is the effect of EMV debit cards on card skimming), but payment technology will surely continue to evolve as companies chase two major areas of consumer satisfaction: better convenience and advanced fraud protection. Meanwhile, it's crucial for consumers to closely monitor their financial accounts, so they can quickly stop any unauthorized activity that does occur. The same goes for your credit. An unexplained change in your credit score can help you spot fraud.
This article originally appeared on Credit.com.
