I just read that a vast network of ATMs will soon allow transactions without a card (PDF).

Payment Alliance International (PAI), a leader in electronic payment processing solutions, and MagTek, a global leader in secure mobile payments technology, jointly announce the deployment of MagTek’s Qwick Codes across PAI’s nationwide network of over 50,000 ATM machines.

…solution that consumers can use everywhere without actually carrying a payment card.

First question: if ATM stands for automated teller machine then what is an ATM machine? I’m not trying to be picky; I just figure a press release from the leader in electronic payment processing with 50,0000 units might be on to something new and pushing the envelope (pun not intended).

But seriously, I think I should not call this a card-less system. It is an ATM without the need to swipe the card; the transactions still need a card. The need to carry the card is related to a card carrier’s ability to plan ahead and generate tokens. With the new system data is transferred from a card to a phone so the card does not need to be swiped at the ATM machine (or ATM).

Qwick Codes Mobile Wallet is an easy-to-use application that runs on a PC, Apple iOS device or Android smartphone with a Secure Card Reader Authenticator peripheral attached. All consumers need to do to generate a unique Qwick Code is swipe any traditional magnetic stripe payment card they already carry in their wallets through the Authenticator and a one-time, disposable account number and PIN are generated. Consumers use their Qwick Code and PIN at supported ATMs to withdraw cash, eliminating the need to physically carry a payment card while reducing exposure from skimming and related fraud.

The goal is to avoid skimming attacks at the ATM. I have written about that security issue before. In this case I have my doubts about the security of the link between the application on the computer and the Secure Card Reader Authenticator. I also notice that they claim support for a PC and Apple iOS. Who wants to bet that they mean Microsoft Windows OS when they say PC? Not a good sign.