CO-OP Financial Services is introducing cardless ATM transactions to its roster of digital banking and payment solutions. The new cardless cash access allows members to withdraw cash by using their phones, rather than a plastic card, to initiate and complete a transaction.
Credit unions add the cardless cash feature to their phone through a mobile app. The accountholder is then able to log in to the app and stage the cash withdrawal. Once at the ATM, the accountholder selects the cardless cash access option, leading the ATM to display a dynamic token or QR code. The accountholder then scans the QR code with the mobile app and when authentication is complete, the cash is dispensed.
CO-OP President CEO/Mark Clark emphasized that the growth of cardless transactions is expected to reduce fraud because it makes card skimming impossible. By removing the card from the transaction all together, the technology eliminates the risk of mag-stripe data compromises at the terminal.