Recently, a number of banks have issued announcements to adjust ATM cardless withdrawal business. Many bank customers are worried that they will no longer be able to withdraw cash at ATMs without their bank cards. On July 2, a reporter from Beijing Youth Daily found through a multi-party understanding and personal trial that there are many modes of cardless withdrawal in domestic banks, and most of the cardless appointment withdrawal business has been suspended. After a personal trial, a reporter from Beiqing Daily found that it is more convenient to withdraw money by brushing your face than by scanning the code.
Some banks suspended two cardless cash withdrawal services in January
On June 28, IB issued the Announcement on Adjusting the ATM QR Code Withdrawal Business of Mobile Banking, which stated that the bank will stop the ATM QR code withdrawal service in mobile banking from July 10. After that, customers can still withdraw money with a card, face swipe or go to the bank's business outlets to withdraw money through the bank's ATM. This means that if you don't bring a bank card, you can only withdraw cash by swiping your face at the IB ATM.
It is understood that the operation process of scanning the QR code to withdraw money from the ATM that was stopped this time is to select "QR code withdrawal" on the bank ATM, open the mobile banking App of IB, click "Scan" to scan the QR code on the ATM, and operate according to the prompts.
In fact, this is the second time in more than a month that IB has adjusted the ATM cardless cash withdrawal business. A reporter from Beiqing Daily found that on May 24, Industrial Bank issued the "Announcement on Adjusting the Appointment Withdrawal Business of Personal Mobile Banking". According to the announcement, the SMS reservation withdrawal service in personal mobile banking will be suspended from the date of the announcement, and customers can still withdraw money with a card, swipe their face, scan the code or go to the bank's business outlets to handle the withdrawal business through the bank's smart machines.
According to the information on the official website, the SMS withdrawal reservation service of IB Mobile Banking allows customers to make an appointment for cardless withdrawal on the mobile banking, and after the appointment is successful, they can make a cardless cash withdrawal on the IB ATM with the appointment code and the reservation password. The whole operation is divided into two major steps. The first step requires the customer to log in to the mobile banking, click "Scheduled Withdrawal" - "Scheduled Withdrawal Application", select the debit card that meets the application conditions, enter the withdrawal password, the amount of the scheduled withdrawal, and set the reservation withdrawal password, SMS password or token password; After the appointment is successful, the customer will receive an SMS notification of the appointment code on their mobile phone. The second step is to withdraw cash from the ATM, and the customer can withdraw cash by selecting "Appointment Withdrawal" on the ATM or ATM interface, entering the appointment mobile phone number and reservation code according to the on-screen prompts, and entering the correct reservation withdrawal password. After the withdrawal request is successful, it is only valid for the same day, and will automatically expire the next day.
In addition to the Industrial Bank, the Guizhou Provincial Rural Credit Cooperatives also adjusted the ATM scanning code deposit and withdrawal business in mid-March this year, and stopped the ATM scanning code deposit and withdrawal functions.
Multiple banks are still available for QR code scanning and face swiping withdrawals
However, there are not many banks that have canceled ATM QR code withdrawals nationwide, and more banks have only stopped ATM scheduled withdrawals. According to public information, since May, Bank of Communications, Agricultural Bank of China, China CITIC Bank, Bank of Guangzhou and other banks have closed the mobile phone reservation withdrawal function and retained the scan code withdrawal function.
For example, on June 13, Bank of Guangzhou issued the "Announcement on Adjusting the ATM Cardless Reservation Withdrawal Business", which will close the ATM mobile phone reservation withdrawal and WeChat reservation withdrawal functions initiated through mobile banking, WeChat banking and smart counter channels from June 19, 2024. After the business adjustment, you can withdraw cash with a card, QR code or go to the bank's business outlets to withdraw money through the bank's ATM.
On May 21, Bank of Communications issued the Announcement on Adjusting the Scheduled Withdrawal Business of Personal Mobile Banking, announcing that the bank will stop the scheduled withdrawal service in the cardless withdrawal function of personal mobile banking from May 24, 2024. After that, customers can still withdraw money with a card, scan the QR code or go to the business outlets to withdraw money through the smart machine of Bank of Communications.
On May 9, Agricultural Bank of China (ABC) issued the Announcement on the Suspension of Cardless Withdrawal Service of Zhangyin Bank, announcing that it will suspend the cardless withdrawal service of Zhangyin from May 9, 2024. After the suspension of the above services, customers can handle cash withdrawal related business through card reading, palm bank scanning code withdrawal, face scan withdrawal, and other methods. It is understood that the cardless withdrawal service of the Agricultural Bank of China is the mobile banking appointment withdrawal.
Judging from the announcements of various banks, "security" is an important reason for this adjustment. In the announcement, IB explained that "in order to improve the quality of business development and ensure the safety of customers' funds", China CITIC Bank said that it was to "provide safe and convenient financial services"; Bank of Guangzhou also calls it "for providing safer financial services".
Why are banks tightening their card-not-present cash withdrawal business?
Compared with the scheduled withdrawals that are suspended by most banks and the reserved QR code withdrawals and face-brushed withdrawals, the biggest difference is that there is a time difference in the process of making an appointment for withdrawal. The difference between the scheduled time for a withdrawal and the actual withdrawal can be as short as 1 hour or as long as 1 day. This varies from bank to bank.
Wang Pengbo, chief analyst of Broadcom Consulting, believes that from the perspective of security, there is a time lag in making an appointment for withdrawal, and there are certain potential risks.
Su Xiaorui, a senior researcher at Suxi Zhiyan, believes that in recent years, many banks have successively "tightened" cardless deposit and withdrawal business for two main reasons: first, the cardless deposit and withdrawal function itself is not highly accessible, and continued use will consume maintenance costs; Second, the risk factors related to cardless deposits and withdrawals cannot be ignored, and the use of physical cards will provide customers with an additional line of security for deposits and withdrawals.
Zhou Maohua, a macro researcher at the financial market department of Everbright Bank, pointed out that commercial banks make appointments to withdraw money and ATM machine scanning code withdrawals are cardless withdrawal methods, which are themselves to facilitate customer withdrawals. However, without a physical card withdrawal, customers may face account or information security risks, and at the same time, it also increases the cost of the bank in system update and maintenance.
Anti-money laundering considerations are also cited as an important reason for banks to tighten their card-not-present withdrawal operations. Zhou Maohua said that from the perspective of anti-money laundering, cardless deposit and withdrawal services such as appointment withdrawals and ATM QR code deposits may also have loopholes such as not being able to accurately identify the identity of depositors and confirm the relationship with the payee, and the source and use of funds are hidden, which will make it more difficult for banks to monitor money laundering activities.
Wang Pengbo also believes that cardless deposit and withdrawal services such as appointment withdrawals and ATM QR code deposits may have loopholes such as not being able to accurately identify the identity of the depositor and unable to confirm the relationship with the payee, and the source and use of funds are hidden, which will make it more difficult for banks to monitor money laundering activities.
Su Xiaorui also said that banks should consider improvements related to convenience improvement on the basis of verifying the identity of users and the actual needs of deposits and withdrawals.
Journalist Experience:
Withdrawing money by swiping your face is more convenient than withdrawing money by scanning the QR code
According to the announcements of these banks, after the scheduled withdrawals were stopped, both QR code withdrawals and face swipe withdrawals were still retained. After a personal trial, a reporter from Beiqing Daily found that it is more convenient to withdraw money by brushing your face than by scanning the code.
On the morning of July 2, a reporter from Beiqing Daily personally tried the functions of the Agricultural Bank of China to scan the code and withdraw money by brushing the face, which were basically completed smoothly within two minutes, but the withdrawal by brushing the face was obviously more convenient.
On the self-service machine of an agricultural bank in Dongcheng District, a reporter from Beiqing Daily clicked on the homepage "Withdrawal Business", and three options were displayed on the screen: "Card Reading Withdrawal", "Face Withdrawal and Scanning Code Withdrawal". After clicking "Scan Code Withdrawal", a QR code will be displayed on the screen, after scanning the code with ABC Mobile Banking, you need to select the ATM card number on the mobile phone, enter the withdrawal amount, account password and other information, and then the mobile banking will display "Transaction Accepted". Next, you need to check the withdrawal account number and transaction amount, and enter the account password on the machine keypad again, and then you can withdraw cash at the cash spit.
After trying to scan the code to withdraw money, the reporter of Beiqing Daily experienced the withdrawal of face brushing. After clicking "Face Withdrawal", the system will ask to enter the mobile phone number or ID number, followed by the face recognition function, after successful recognition, confirm the withdrawal account and amount on the screen, enter the withdrawal password, and the cash will be spit out of the machine.
Because the whole process of face withdrawal is operated on the self-service machine, there is no need to take out the mobile phone, the operation part of mobile banking is omitted, and the account password only needs to be entered once, so it is more convenient and faster than scanning the code to withdraw money.
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Text/Beijing Youth Daily reporter Cheng Jie
Editor/Fan Hongwei