Future ATMs: Online Cash Advances and the Cashless ATM

Since appearing in the late 1970s, ATM technology changed very little. However, the next few years will see an explosion in new ATM technology. Cashless ATMs, online ATMs and new security options will transform how we access and use ATM machines.

The online ATM is likely to be a reality within five years. While it will be possible to arrange an online cash advance through computers, cell phones are likely to be the primary method of contacting the online ATM and arranging an online cash advance.

Here's how the online ATM would work:

The online ATM provides the customer with a one-time PIN, which is sent to the cell phone used to contact the ATM. At the actual ATM location, the customer punches the one-time PIN into the ATM and the ATM dispenses the cash.

Online cash advances and the online ATM will make using an ATM much less time consuming. Stuck at the back of a 10-person line for the ATM? You could access the online ATM through your cell phone and do all your banking. When you get to the front of the line, the online ATM will be ready to complete your transaction.

The cashless ATM is already available in some locations, including many of these types of businesses:

How does a cashless ATM work? The customer swipes their ATM cards just as they would with a regular ATM and enters the amount they want to withdraw. The amount is automatically transferred from the customer's account to the merchant's account.

The cashless ATM then prints out a cash voucher that the customer presents to the cashier, which can be exchanged for the goods and services purchased. The cashless ATM lets merchants deposit a significant amount of daily earnings directly into their bank accounts without having to visit the bank in person.

While some companies focus on the cashless ATM, others seek to make the use of deposit envelopes a thing of the past.

Rather than stuff a deposit envelope with checks and cash (or experience the frustration of an ATM that's run out of envelopes), a new breed of ATM allows people to deposit checks and cash directly through the deposit slot.

Once deposited, the ATM returns a receipt with a printed copy of each check. If cash is deposited, the ATM prints the cash total broken down by the denominations deposited.

Envelope-less ATMs translate into major savings for banks. At present, each deposit envelope must be checked to confirm the presence of cash or checks. An armored car collects the envelopes at the end of each business day.

If cash and checks are deposited directly, checks are electronically deposited immediately. The armored car doesn't need to run more than once a week, and customers won't have to wait as long for their ATM-deposited checks to clear.

Security is a major concern for both ATM operators and customers, and new technology is available to prevent fraud and ensure customer safety.

Theft of PINs and ATM card numbers is commonplace. A "shoulder surfer" is a thief who quickly memorizes ATM card information by standing behind the person using the ATM. With digital recording technology so affordable, some shoulder surfers use cell phone cameras to capture ATM card numbers, while others record ATM activity on digital camcorders from a safe distance.

A number of solutions have been presented to solve this growing problem. The online ATM's one-time PIN would be useless to anyone who observes it, as it is only valid for a single online cash advance.

Other ATM technology aims to do away with the ATM card entirely. Biometrics is the science of confirming identity through physical characteristics. While once confined to science fiction, biometric identification technology is under development for ATMs.

A biometric ATM could identify people through a number of unique physical features. In the future, your ATM "card" could be any of the following:

The possibility of the biometric ATM is so close that some companies are developing biometric conversion kits that will quickly transform existing ATMs into biometric ATMs.

Not all criminals are content to shoulder surf. More violent offenders may overpower people at an ATM and force them to withdraw money. While some ATM machines are monitored with cameras, there's no guarantee help will arrive in time.

 

 

Victims of an ATM mugging may soon be able to inform police of their danger with an emergency PIN. The emergency PIN may be your regular PIN with the numbers reversed, or with a number added to each digit.

 

Once entered into the ATM, the emergency PIN sends the information to the police, including your location and physical description.

 

Advances in ATM technology aim to both increase customer convenience and increase the safety of customers and their identities.

Resources

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Diebold, Incororated (n.d.). Diebold's S.A.F.E. Initiative Integrates New Technology to Attack ATM Fraud. Retrieved September 11, 2007, from the PR Newswire Web site: www.prnewswire.com/cgi-bin/stories.pl?

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Digital Transactions (2007). Diebold Sees Early Interest in Technology Linking Handsets to ATMs. Retrieved September 11, 2007, from the Digital Transactions Web site: www.digitaltransactions.net/newsstory.cfm?newsid=1495.

McClatchy Newspapers (2007). New ATM Saves Time and Money. Retrieved September 11, 2007, from the Billings Gazette Web site: www.billingsgazette.net/articles/2007/08/26/news/business/61-

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Security Solutions (n.d.). State Bill Pushes New ATM Technology. Retrieved September 11, 2007, from the Security Solutions Web site: securitysolutions.com/news/security_state_bill_pushes/.

Shah, K. (2007). ATM Banking without a PIN. Retrieved September 11, 2007, from the Express Computer Web site: www.expresscomputeronline.com/20070903/management03

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