Diebold Patents Cover Cell Phone Access to ATMs

In the past year and a half, Diebold was granted 5 separate patents on technologies that allow cell phones and other mobile devices to talk directly with bank ATMs. The new technologies covered by the patents will allow consumers to use their mobile devices to locate and get directions to the nearest ATM, “order” cash withdrawals remotely, generate electronic checks to pay for goods or services, transmit wireless payments and conduct other transactions more securely and conveniently than they do presently.

Specifically:

Patent 7,040,533 – Enables mobile devices to interact directly with an ATM and a bank system to allow a customer to “order” cash withdrawals from a mobile device. The technology offers protection against card-skimming or personal identification number (PIN) surfing at ATMs, since a customer’s mobile phone becomes his or her input device to the ATM. This offers a greater sense of security to consumers who worry about entering their personal account information where others can watch or an unauthorized camera can record a PIN entry.

Patent 7,207,477 — Enables mobile devices to be used in a checkout or bank environment to make payments using secure electronic checks.

Patent 7,201,313 — Enables a bank network to receive wireless communications from a mobile device, including a customer’s bank account number and account cash value. This patent defines how a wireless device can “communicate” with a bank network to dispense cash and assess a customer’s account for the value of the cash dispensed.

Patent 7,150,393 — Enables bank ATMs to communicate with mobile devices through a cellular network or other wireless methods. This application could also allow two or more customers to simultaneously conduct transactions with an ATM.

Patent 7,025,256 – Enables a user of a wireless device to interact with an ATM by using the wireless device’s display and keypad instead of the display and keypad on the ATM.

Approximately 8 billion ATM transactions are performed annually in the United States, according to a study cited by Diebold’s press release. Diebold, a company best known for making automatic teller machines and electronic voting systems, says the applications made possible by these technology patents may be in use within three to five years, enabling faster and more convenient ATM transactions via customers’ cell phones.

Given the general public’s concern with security – with wireless transactions as well as Diebold-branded equipment – it’ll be interesting to see how quickly banks will adopt this technology and how aggressively they’ll market it to customers.