Smartphones to Replace Cards at ATMs

Here's another use for the smartphone as it invades daily life: in place of your debit card at your bank cash machine.

The "cardless" automatic teller machine (ATM) is gaining ground in the US and around the world, with smartphone technology allowing for speedier and more secure transactions.

Dozens of US banks are installing new ATMs or updating existing ones to allow customers to order cash on a mobile application and then scan a code to get their money without having to insert a bank card.

US banking giants Wells Fargo, Bank of America and Chase are in the process of deploying the new ATMs, as are a number of regional banks and financial groups around the world. Makers of ATMs and financial software groups are ramping up to meet this demand.

http://gadgets.ndtv.com/mobiles/news/smartphones-to-replace-cards-at-atms-804945

 

This is a new technology to me. I am working in a bank and although I am not in the ATM section, I have been attending launchings of the ATM software when there are upgrades. I cannot say if it is good or not but that smart phone method for ATM will do away with the skimming of ATM cards. Right there are cases of skimming where an ATM's card details are copied and later on used to withdraw money (by criminal elements). But on the other hand, the smart phone withdrawal can also be subject to hacking.

 

I feel like a dinosaur out of touch with this world. I don't see how using the smart phone is safer to get money out of the bank. What if you loose your phone and who can you trust if you happen to forget your phone even at a friend's house? I think it will only bring on more problems than we are bargain for.

 

I would never use it. That is insecure to beat all hell, and it would be a security nightmare and a hacker's wet dream if people started to use that mainstream. No way. People may use it, I'm sure they will, but they'll suffer for having used it once they do.

The reason this hasn't been done in the past is because everyone knew how insecure it was, and recognized that it wasn't as much how it is done that is important, but how it is protected if at all. There were no ways to reasonably protect against hacking it, so it was abandoned.

It's like they don't care anymore and want people to get hacked and lose their money to this, just so they can say they are in the future? Is that not the definition of madness?

 

I honestly hope they give us a choice! I'd not like it if smartphones were the new ATM card, that would be a nightmare for me and many people. I don't think they ever will do that, but if this is just an option then I'll definitely never use it.

 

It doesn't make sense to me either. I just hope they are not thinking about replacing ATM cards with well this.... that would be insane! I don't think they will completely replace ATM cards, but you never know. I truly hope they give us the choice to pick which method we want to use...

 

It reminds me of how people can pay a restaurant bill with just the touch of their smartphone on a card machine. Technology is crazy these days. I wouldn't want to do that at the ATM though.

 

I just foresee a whole load of problems with this way, and I don't use my cellphone for online banking either. For me and many people that I know, we do forget our phones from time to time at different places. I rather loose the phone and not have to worry about my banking business or other important information on the phone. In fact, I don't even use my ATM card that often either

 

My mom always leaves her ATM card at home, she only takes it with her when she is going to use it. Now you made me think about it, because mine is always in my wallet D: We never use the ATM card to pay for purchases, by the way, because there were a lot cloning issues in the past. Better safe than sorry!

 

Funny that you mentioned the cloning issues! My son was a victim of this very crime. His bankcard was cloned and someone had charged up on his account three times at three different stores for $400 dollars each; and these charges happened in another State. In the meantime, he had no idea until the Fraud Center called him to ask. It was a whole load of mess trying to dispute this with the bank, but he finally straightened them out.

This also had happened to me once two years ago, and I only used my ATM to pay for gas up my car! The bank has advised us not use the ATM card since thieves can place a tiny little camera somewhere at the pump and as soon as you took out your card, it would captured the information on both sides of your card without making a sound and you would never know that your ID was compromised.

 

I am not sure where I land on the spectrum of ability to adapt to new technology, because I would like to consider myself to be on the cutting edge and all of that, but it does take me some time to get used to things like this. I am just not a person who is comfortable living life through their cell phone, and having to use it at the ATM might just present some issues for me. I should not be surprised at this point though, and it is just another way I will have to change.

 

In the UK, we already have this sort of technology, in what I believe are two different formats: One is the app on the phone, which uses the NFC (Near Field Communication) tech inside the phone to mimic a card. This is problematic because it will not work if your phone decides to crash or run out of battery. The other tech which a couple of banks have introduced is a sticker which goes on the back of the phone with a tiny chip inside, which can be used for contactless purchases (of up to £30/$45) in stores with compatible card readers.

Both are in their infancy, but I prefer the second offering, because there seems to be less room for error and less capability for tampering. And to the person worrying about leaving their phone elsewhere - the same could be said for your wallet or card holder, but out of your phone and your wallet, which one do you reach into your pocket to look at approximately once every half hour? I think it's almost less likely for people nowadays to forget their phones than it is for them to forget their wallets or keys.

 

I really like this one but I would just stick to the use of cards for some time even after it has been launched.
I lose my phone a lot so I want to look at that problem. I also want to know the requirement of the smartphone because there are a lot out there. Plus, is it really a must for me to have a smartphone?
So many questions I need to have answered before I use that technology for my money.

 

In Korea I've seen quite a lot of people paying with their phones. It looks quite hassle free to be honest.Personally, I wouldn't dare to use it. It seems less secure? Even though I've never lost my phone, it can always happen! Also, mobile apps require a lot of access to your phone anyway. Therefore, I would never use my phone for money issues.