What is Cashless ATM (CATM)?

Cashless ATM or CATM payments enable a customer to make a purchase with a debit card in the same way as they would make an ATM transaction to withdraw cash. These types of payments are also known as point-of-banking and rely on the existing payment networks to pull funds from a debit or credit card using a four-digit pin. The transaction works similarly to withdrawing funds from a physical ATM but skips the step of actually pulling physical cash from a machine. The transaction shows up on the customers’ bank statement as an ATM withdrawal. Funds for cashless ATM transactions usually appear within 3 days. The round up increment is $10 for this type of transaction. Although this has been a popular payment processing solution for dispensaries, there are potential fees and risks involved.