Smartphones Could Replace ATM Cards Starting This Year

Discussion in 'Android News' started by dgstorm, Jan 29, 2016.

  1. dgstorm

    dgstorm Editor in Chief
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    It looks like one of the best reasons to use NFC based, contactless smartphone payment systems just kicked off recently. Although Android Pay and Apple Pay are getting off to a slow start with retailers in the US, a new functionality is being implemented that might spur growth in the adoption rate by consumers.

    This would snowball into a faster adoption rate by retailers as well. Several major U.S. banks confirmed they are introducing contactless ATMs in 2016. This includes Bank of America, Chase and Wells Fargo.

    The only negative to contactless ATMs is that the security issues are increased. This isn't because the NFC system is less secure, it's because ATM technology is still pretty old across the country. To make the old systems work with the newer tech and still be secure, the initial implementation will require QR code authentication, which slows down the process and defeats the purpose of a contactless system.

    Eventually, the ATM systems will be upgraded with a fully implemented contactless biometric security setup. At that time, they will be more secure than the antiquated systems in place today. Here's a quote with a few more details,

    "The adoption of contactless ATMs by major banks in US will likely help to cut down on card skimming and fraud. With no physical debit card to swipe, criminals would have to figure out how to crack the tough encryption on mobile payment Apple and Google's services, which is no easy task."

    What do you folks think? Would you like to see ATMs convert to an NFC contactless smartphone system?

    Source: The Verge
     
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  2. Powarun

    Powarun Member

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    I would as long as its pretty secure and supports majority digital wallet apps at the same time. No, only accepts Apple Pay or Samsung Pay, or Android Pay. I know that each is unique in its own way yet I don't want to think, OH if I get this phone I can't withdraw from an ATM.
     
  3. tommyz

    tommyz Member

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    I noticed the NFC symbol on the new ATM Bank of America installed near my house. I never tried it.
     
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  4. CTownDroid

    CTownDroid Gold Member

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    If it's anything like my wife's NFC debit card, they can finish baking that technology. I'm dreading getting that NFC debit card forced upon me. My son and I have a couple accounts at the same bank and she's apparently a guinea pig for Huntington.

    There is nothing quicker about it and it's actually quite annoying.
     
  5. kodiak799

    kodiak799 Gold Member

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    It's like the new chips in credit cards.....swipe, then wait for the prompt to insert your card....wait....wait some more....please keep your card inserted and wait....approved.

    Minor inconvenience that I'll trade for security (having had my CC info stolen 2-3 times), but hopefully the future holds a better way.
     
  6. cr6

    cr6 Super Moderator
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    Not sure I understand your comment regarding the "chipped" cards and wait times. Is this happening with all of your chipped cards, or just with one in particular such as a bank debit/credit card? Sorry I don't mean to be nosey, I only ask because I haven't noticed that with mine. I have 5 cards that I use regularly. 2 are chipped and the other 3 aren't. I haven't noticed any delay or special prompts with one over the other, so I was just wondering if maybe this is a "bank" thing, or a particular "store" thing, in regards to the wait times.

    S5 tap'n
     
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  7. kodiak799

    kodiak799 Gold Member

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    Credit card I've used...only a few retail locations so far are requiring it. It's not a huge delay, but probably a bit longer than it would take when you swipe your card.

    You are referring to when you have to insert and keep the card inserted, right? Because that's the actual chip reader - if you're just swiping a card with the chip that's the old tech not utilizing the chip feature.
     
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  8. cr6

    cr6 Super Moderator
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    ok...gotcha. Now that you mention it, I do recall a couple places that have required it to sit there for a second. I thought I was using the older machines at those places. LOL
    Yeah, definitely not as convenient. But like you said, it's worth the extra couple seconds for improved security.
    Thanks Kodiak!

    S5 tap'n
     
  9. Mustang02

    Mustang02 Diamond Member

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    Depends on the terminal. If you know you have a chipped card, insert it. You don't need to swipe. Some places aren't Chip compatible yet.
     
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  10. Jonny Kansas

    Jonny Kansas Administrator
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    Only a matter of time before they put skimmers in the chip slots. These transitional cards that still have the mag stripe aren't really that secure.

    Sent from a backup S3 :(
     
  11. Mustang02

    Mustang02 Diamond Member

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    It's supposed to be chip and pin. But pin isn't activated.
     
  12. Jonny Kansas

    Jonny Kansas Administrator
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    But a real chip & pin card has no magnetic stripe in countries that have been using them for years. We still have the mag stripe because many places aren't setup for the chip yet. Our cards are just a vulnerable as ever at this point in the game.

    Sent from a backup S3 :(