Banks upgrade ATMs by cutting the envelopes

An increasing number of banks are making the switch to ATMs allowing customers to make deposits without requiring them to put checks in envelopes.

ATM-based deposit services are widely available, but some banks are deploying new technology that eliminates the envelope. Instead, customers receive printed receipts that show scanned images of the checks they have deposited.

The updated process will save money for banks and time for customers. Many banks with ATMs in busy locations would have to pay for an armored car to remove the checks and their envelopes at the end of each day. Not only does the new system eliminate the need for banks to purchase envelopes, but the cost of transporting the additional paper has also been reduced significantly. Perhaps the biggest improvement lies in the fact that banks employees no longer have to process each deposit -- as long as the machine can read the check, the whole process is automated.

Customers may also feel safer with the new technology because the scanned check images provide a visual record of their deposits. Instead of placing checks in envelopes and trusting that they will be processed correctly, customers can see that the ATM has "understood" how much each check is for and confirm that the funds are destined for the right account.

The new machines aren't without their glitches, and some banks have appointed so-called ambassadors to help customers navigate the more sophisticated technology. The machines can jam or fail to recognize the writing on customers checks, causing an extra manual step in the deposit process. Ultimately, however, the wider availability of these machines should help consumers simplify their lives.

--Bridget O'Sullivan