A new system will use these technologies in an effort to block card skimming practices.
A new system has now been developed using QR codes and smartphones to help to overcome the current problem being faced by skimming devices that can read credit card numbers as a consumer makes a purchase at a vending machine or other kind of automated kiosk.
The goal is to try to use technology commonly carried by consumers in order to overcome this type of theft.
The U.S. BMO Harris Bank recently launched its own cardless network of ATMs in order to help to reduce credit card number skimming as well as to decrease the transaction time. The reason that it can work to eliminate the risk of skimming is that there isn’t a physical card being swiped at the time that the ATM is used. Instead, it requires only the use of QR codes and a smartphone. The account user launches a banking app and logs in, in order to be able to withdraw cash at the machine.
The QR codes are displayed on the mobile device and then the ATM reads the barcode to proceed.
The mobile device is used with an app in order to log into the bank account and then select the amount of money that the user wants to withdraw. When they arrive at the ATM, they simply select the “mobile cash” button and allow the ATM to read the quick response code that is displayed on the screen of the mobile device. The ATM verifies the barcode and then dispenses the money.
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This has been designed to not only improve the security of the transaction by eliminating the need for cards that can be skimmed, but it has also been reported that this type of transaction takes an average of 30 less than the average traditional use of the banking machines.
As much as QR codes have had a hard time gaining acceptance and the fact that they are not entirely aesthetically pleasing in the way that they have been worked into marketing material, but they have also become one of the leading methods of enabling mobile payments in vending machines and other similar transaction experiences.