What to expect from cardless ATMs

Bank of America Entering the Cardless ATM Competition

You can do just about anything with a smartphone these days and if big banks have anything to say about it, that will soon include getting cash at the ATM. While some smaller banks have already rolled out cardless ATMs, Bank of America, Chase and Wells Fargo are among the biggest financial institutions to jump on this trend. The updated machines are expected to roll out sometime in 2016 but in the meantime, here's what you need to know to prepare for the change.

Find out now: Which checking account is best for me?

How Cardless ATMs Work

The premise behind cardless ATMs is fairly simple. You log into a banking app on your smartphone and scan a QR code on an ATM to make your deposit or withdrawal. The codes are designed to be used once and they expire so no one can attempt to duplicate a transaction.

Some cardless ATMs could rely on near-field communication, which is what mobile payment methods like Apple Pay use. In that scenario, you'd still log in through the mobile app but instead of getting a QR code, you'd tap the ATM screen with your phone. Either way, you wouldn't have to physically use your card at the ATM and both methods offer a secure way to conduct transactions.

Related Article: All About Mobile Banking

What Are the Benefits?

Cardless ATMs have the potential to benefit bank customers in a few different ways, so they're something you might want to consider when comparing accounts at different banks. For one thing, it's more convenient to use your phone to grab some cash than it is to carry around a wallet full of plastic. And going cardless can save you valuable time at the ATM.

Increased security is another advantage of the new machines. Skimming is common among fraudsters and identity thieves who use the technique to gain access to banking information. An identity thief can easily extract the information encoded in your ATM card's magnetic stripe and get instant access to your financial details. By not requiring cards, the updated ATMs eliminate the skimming threat.

With cardless ATMs, you've also got another layer of protection if someone steals your phone. Assuming you've put a lock code on your device, a thief would need to figure out the passwords to your phone and your mobile banking app in order to access your account. Basically, cardless ATMs can make your life easier and make things more challenging for identity thieves.

Related Article: 4 Ways You're Making Yourself Vulnerable to Identity Theft

How Cardless ATMs Affect Withdrawals

As part of the effort to get customers excited about cardless ATMs, some of the big banks are changing their withdrawal policies. For example, Chase is raising the maximum withdrawal limit to $3,000 and the new machines will now dispense money in $1, $5, $20 and $100 denominations.

Banks charge a number of fees and one thing that's not likely to change is the fee for using an out-of-network ATM. If you need to use your card at another bank's ATM, be prepared to pay an extra fee for the convenience.

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What to expect from cardless ATMs

Dog-sitting, babysitting, or house-sitting

These jobs are always in high demand, and the best part: you can name your price and create your own schedule! Post an ad on craigslist, or use your friends' and family's connections to get your name out there. 

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Rent out your space 

List your apartment on Airbnb or another rental site, and make some easy cash by staying at a friends and renting out your place for the weekend.

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Share your space

Just as you can rent out your full apartment or house, you can also post a free room (or even just your couch!) on sites like Craigslist or Airbnb. This way you can split your living expenses -- and maybe even make a new friend!

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Sell your body parts

Now here's a weird one: Donate your hair, breast milk, or even plasma for a profit. According to Grifols, if you're healthy and weigh above 110 pounds, you can earn up to $200 a month donating your plasma to life-saving medicine. 

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Sign up to participate in medical tests and clinical trials. 

Universities constantly need volunteers to test new medicines and treatments -- and because the pool of willing participants is limited, there is typically a large compensation for being a guinea pig. 

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Participate in a focus group

Companies and organizations will pay you to join a focus group. These can be conducted in person, online, or via phone. You will most likely be reimbursed in cash or gift cards -- plus, you often get to test out fun new products! 

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Take online surveys

Similar to focus groups, you can get paid to give your time and insights on an online questionairre. Plus, you can do this from the comfort of your couch. 

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Bank on your sperm

Although we don't necessarily recommend this option, there is a very high demand for healthy sperm donors. Keep in mind some of the obvious drawbacks, but sperm donation is non-invasive and highly compensated. 

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Crowdfund your dreams

Crowdfunding allows you to raise monetary contributions from a large group of people who want to support your venture. Post your project or idea on a crowdfund site, like GoFundMe.com, and see the cash pile up.

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Become a tutor

If you're qualified, post an ad online or on a community board to tutor children on their school courses or for the upcoming SATs.

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Get a part-time job

Capitalize your free time (on the weekends or after work hours) by working a part-time job. A bartender, waiter, or Uber driver are all great options for an additional source of income -- and great tips! 

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Resell tickets

Take this suggestion at your own risk: If you're staying within legal limits, buy tickets low and sell high as an effective way to source additional money. (Just make sure to check your state and local laws first!)

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You can sell anything on the internet these days... including your companionship! Get paid to go on a platonic outing for a few hours and enjoy your afternoon with a new friend. 

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Rent out your parking spot

Make sure to check with your landlord first, but if you have the option to park your own car further away, lend or share your parking space or driveway for the hour, day, or even month! 

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Keep a coin jar 

This one takes patience before a big pay out, but keep a spare jar or drawer for loose change that you usually toss anyway. It will keep it all in one place -- and those quarters do add up! 

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Make something to sell 

If you have a knack for arts & crafts, create jewelry or other handmade gifts to sell on sites filled with other thrifty vendors like Etsy

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Sell items online

This effective strategy requires low effort with a high return. Post photos of your used or non-used items on sites like eBay or Craigslist, and let the bidding begin! 

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Have a yard sale

Sell clutter you've been meaning to get rid of right in your front yard. This simple tactic is convenient, and guarantees a wad of cash right to your pocket.  

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Return past purchases

This tip may seem obvious, but is often overlooked: Take your recently-purchased items that are laying around back to the store for either store credit or a full refund. 

Recycle scrap metal and cans

Collect cans and scrap metal out your own garbage, basement, and street and bring to your local recycler to exchange your findings for money.  

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The post What to Expect From Cardless ATMs appeared first on SmartAsset Blog.

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