While visiting an ATM, the machine swallowing the card is a nightmare many first time users have seen. Even for frequent users, it is not a very pleasant experience. That hampers the user experience and can also prevent novice users from using ATM due to the insecurity of this possibility. Getting the swallowed card back is another big hassle.
One feels insecure about using an ATM due to the possibility of card swallowed by the machine. On contrary user feels in control with swapping action since he still holds it than loosing it altogether. Swallowing is rather a systems requirement than a users’ preferred option.
In case of system failure, the card gets stuck inside and the user is frustrated. Users especially in rush hours or with hands already occupied can be unable or forget to get card back, which poses a problem.
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The swallow is a feature.
A lot of people take the money at the end of the transaction and leave, forgetting the card back. I would rather have my card swallowed than left at the lip of the ATM machine to be victimized by identity thieft.
Yes it is a system required feature that is better than asking the user.. "Do you want your card swallowed at the end of the transaction"