Do ATMs Shred Cards When They Retain Them?
Understand the secure process for cards retained by ATMs. Get insights into their fate and what actions to take next.
When an Automated Teller Machine (ATM) retains a debit or credit card, it can be unsettling, raising questions about the card’s fate and account security. This common occurrence often prompts immediate concerns about whether the card is destroyed or if it can be retrieved. Understanding the reasons behind card retention and the subsequent handling procedures can help alleviate these anxieties and guide appropriate action.
Why ATMs Retain Cards
ATMs are designed with various security protocols and operational considerations that can lead to a card being retained. A frequent reason is the repeated entry of an incorrect Personal Identification Number (PIN). After a certain number of failed attempts, usually three, the ATM will withhold the card to prevent unauthorized access and potential fraudulent activity. This measure is a safeguard against someone trying to guess a PIN.
Another common scenario involves issues with the card itself. An expired card, one with a damaged chip or magnetic stripe, or a card that has been reported as lost or stolen can all trigger retention by the ATM. The system identifies these cards as invalid or compromised, leading to their capture. If a card was previously blocked by the cardholder and then attempted to be used without being unblocked, the ATM may also retain it.
Technical malfunctions within the ATM or the banking network can also result in card retention. While less frequent, a power fluctuation, a software glitch, or a communication error with the bank’s servers can cause the machine to seize the card. In some instances, if a card is left in the dispenser for an extended period after a transaction, 15 to 30 seconds, the ATM’s security features will automatically pull it back into the machine to prevent it from being taken by another individual.
How Retained Cards are Handled
Contrary to a common misconception, ATMs do not shred cards immediately upon retention. Instead, a retained card is stored in a secure internal bin or vault. This secure storage mechanism ensures the card is not accessible to the public and remains protected until collected by authorized personnel. The design of these machines prioritizes security, preventing physical destruction at the point of capture.
Bank staff or armored car services collect retained cards. If the ATM is located at a bank branch, the card might be retrieved by branch employees. For cards issued by the bank operating the ATM, there is a possibility of retrieval, though this often requires verification of identity and might involve a waiting period. However, for cards issued by a different financial institution, the policy is to destroy the card.
When destruction occurs, it is done securely, through industrial shredding processes, to protect personal and financial data. Immediately after a card is retained, financial institutions “blacklist” or deactivate the card electronically. This action prevents any further transactions, even if the physical card were to fall into the wrong hands, thereby safeguarding the cardholder’s account from misuse.
Steps When Your Card is Retained
If an ATM retains your card, note the exact time, date, and location of the ATM, along with any transaction details displayed on the screen. This information will be important when communicating with your bank.
Contact your financial institution promptly. Call the customer service number listed on your bank’s website or on the back of another card, rather than a number on the ATM itself, especially if it is not your bank’s machine. Inform them your card has been retained and provide all the details you noted. Request the card be canceled or frozen.
Monitor your account closely for any suspicious or unauthorized activity. Many banks offer online or mobile banking services for real-time transaction monitoring. Should you identify any discrepancies, report them to your bank immediately. Financial institutions will issue a new card to replace the retained one, which may take a few business days to a couple of weeks to arrive by mail. Some banks may offer expedited services or temporary cards for immediate access to funds.