On May 29th, the news that “Multiple Banks Suspend Cardless Cash Withdrawal Services” has garnered attention on the Chinese internet. Professionals stated that the suspension was due to security considerations. The public questioned why the risk was only being considered now after using cardless withdrawals for so many years.
According to a report by the Securities Times on May 29th, following the Agricultural Bank of China’s announcement, the Bank of Communications also tightened its cardless cash withdrawal services on May 24th. Starting from May 24th, the individual mobile banking cardless cash withdrawal service was suspended.
Previously, customers could schedule a “cardless cash withdrawal” on the Bank of Communications’ mobile banking app, setting a verification code and withdrawal amount for cardless transactions at ATMs without needing a physical card.
Reports indicated that in recent years, several state-owned and commercial banks in China, such as Bank of China, Construction Bank, Everbright Bank, and CITIC Bank, have successively announced the suspension of cardless cash deposit and withdrawal services.
The Agricultural Bank of China announced the suspension of its Palm Bank cardless cash withdrawal service starting from May 9th. After the suspension, customers can conduct cash withdrawals through other methods like card reading, palm scanning, facial recognition, etc. CITIC Bank announced the closure of the cash self-service device authorization code withdrawal function on May 17th.
Industry insiders explained that cardless cash transactions through self-service devices could lead to financial risks, prompting the recent security-driven measures taken by these banks.
The news led to discussions on social media platforms in China, with “Multiple Banks Suspend Cardless Cash Withdrawal Services” becoming a trending topic.
Netizens raised questions: “After so many years, now they are worried about security issues. Were depositors bearing the security risks all these years?” “Can contactless payments be exempted from security considerations? Is that still considered safe?” “Is passbook considered with or without a card?” “Are fixed-term deposits counted as cardless transactions?” “Replacing a lost card incurs additional costs, making it even worse.”
Some individuals expressed concerns: “Could there be a ban on cash withdrawals in the future?” Other netizens speculated, “It might happen soon, especially with the Agricultural Bank.” “Could there come a day when at the counter, they ask you for the purpose of withdrawal, and if you don’t reveal it, they won’t let you withdraw, with online payment limits capped at 500 per year.”
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