Many people face the inconvenience of having their cards retained by ATMs while trying to withdraw cash. To address the problem, contactless ATM services using Near Field Communication (NFC) technology have been introduced in Bangladesh.
Private commercial bank City Bank has launched this new facility, which will be available at its ATM booths. However, customers of other banks will also be able to enjoy this facility.
With the new technology, customers can withdraw and deposit money and conduct other banking transactions at ATMs simply by tapping their cards, without inserting them into the machine. An NFC-enabled ATM card may be required for the service. All banks are now issuing cards compatible with the technology.
City Bank claims to be the only bank in Bangladesh to have introduced ATMs equipped with this technology.
How it works
At conventional ATM booths, the plastic card has to be inserted into the machine's slot and a PIN number must be entered. With this service, the card often gets stuck inside the machine. The risk is higher when using a specific bank's card at another bank's ATM.
With an NFC-enabled ATM, there is no need to insert the card into the machine. Customers simply tap the card on a designated area of the ATM, which then identifies the card. They can enter their PIN and complete the transaction quickly and securely.
City Bank has already installed 70 to 80 ATMs equipped with the new technology. The bank plans to install NFC-enabled machines whenever it adds or replaces ATMs in the future.
Although the service has been added to City Bank’s ATM network, customers of any bank in Bangladesh will be able to use it. Under the National Payment Switch Bangladesh (NPSB) system, customers of one bank can use ATMs operated by other banks. An additional Tk 15 is charged for each such transaction.
What are the benefits
Cards can sometimes get stuck inside ATMs because of power outages or technical problems. As the card does not need to be inserted into the machine with contactless technology, there is no risk of it getting stuck or being retained by the ATM.
Traditional ATMs were also vulnerable to card-data theft through ‘skimming devices’ that could copy information from a card’s magnetic stripe. With NFC technology, the card exchanges information by transmitting signals directly, which, according to City Bank officials, makes the possibility of cloning or data theft extremely low.
The technology also saves the additional time required to read the card and eject it after a transaction, reducing the overall time needed for a transaction, bank officials said. Repeated insertion into ATM slots can also wear down a card’s magnetic stripe and EMV chip. The new system helps keep the card intact.
City Bank Deputy Managing Director Arup Haider told Prothom Alo, “The new technology-based ATMs have been introduced for customers’ convenience. Customers will be able to conduct transactions quickly and comfortably without inserting their cards into the ATM.”