“ATMs used to keep the card in the machine until the transaction was over, and a ton of people left them in the machines, so most switched to either a swipe or an insert-and-remove method.”
My ATM card (with a chip) works this way (Citibank). You get to the ATM and swipe it. Then it tells you to reinsert and leave it there for the duration of the transaction. When you sign off it beeps very loudly and lights flash until you retrieve it. This is new, maybe in the past year or so; prior to that, I just swiped, put the card away and did the transaction.