Credit union ATMs to provide cardless cash access

Co-Op Financial Services, a payments and financial technology company focused on credit union success, added cardless ATM transactions to its suite of digital banking and payment solutions. The objective, Co-Op stated, is to meet digital consumer expectations and to enhance security.

The new Cardless Cash Access allows members to withdraw cash faster and more securely at the ATM by using their phones, rather than a plastic card, to initiate and complete a transaction, the company said, adding that this makes it the first credit union fintech provider to offer cardless cash access as a part of ATM network and terminal driving services.

“As with most iterative technology, the ATM channel continues to evolve alongside user expectations,” said Todd Clark, Co-Op’s president and CEO. “One of the most significant ways the ATM improves is through integration with other technology, whether that’s back-office data and reporting tools or consumer-facing UX software. Seamlessly connecting the ATM to the smart devices consumers rarely leave home without is a continuation of this progress. It’s something we know credit union members, especially those who are highly mobile and technology savvy, are going to love.”

According to the January 2018 ATMIA Global Fraud and Security Survey, ATM Skimming and PIN compromise was one of the most common ATM fraud attacks in 2017. Cardless access solves this problem as the solution uses QR code technology – no card and PIN required, the company noted.

An addition to mobile banking

Co-Op provided the following description of how cardless cash access works:

• Credit unions add the Cardless Cash Access feature to their own mobile banking 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.

Cardless Cash Access can be used on Diebold Nixdorf and NCR ATMs within the CO-OP ATM network, and managed by CO-OP Terminal Driving services, the company noted.

Clark believes that when it comes to payments innovation, especially in the self-service realm, security controls must be a priority. The growth of cardless transactions is expected to reduce fraud because it makes card skimming impossible, he noted, adding that by removing the card from the transaction all together, the technology eliminates the risk of mag-stripe data compromises at the terminal.

Clark also pointed out that cardless ATM capabilities will allow credit unions to accelerate their digital transformation. “Through digital transformation, credit unions are aiming to deepen member engagement, boost transactions, solidify their differentiation and drive growth,” he said. “Cardless Cash Access checks each of those boxes while also reducing fraud.”

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