http://www.marketwatch.com/news/story/envelope-free-atms-popular-there-potential/story.aspx?guid=%7BA0C991E8-DEB9-4BF7-A233-95B394FB82B1%7D


Hold the envelope
Envelope-free ATMs gain popularity, but also pose potential drawbacks
By Gail Liberman and Alan Lavine
Last update: 10:36 p.m. EDT Oct. 2, 2006PALM BEACH GARDENS, Fla. (MarketWatch)

Get ready for ATMs that let you deposit both checks and cash without using an envelope.
No-envelope ATM deposits provide enough advantages that both Bank of America and Wells Fargo Bank said they will continue rolling out these machines.
"Other large banks are pursuing it," says Tony Hayes, vice president of Dove Consulting, Boston, who says no-envelope deposits have virtually no downside. Their benefits: Your receipt shows a copy of your deposited check and the numbers and denominations of deposited cash bills. Plus, you get faster access to deposited funds.
This technology comes amid cautions from attorneys and the American Bar Association that consumers should think twice about depositing cash at an ATM. Reason: The computer-generated receipt of an ATM deposit only reflects information you key in on the ATM keypad. If you have a problem, it fails to prove you deposited that amount.
But the latest no-envelope ATM technology changes this, said Jonathan Velline, a senior vice president at Wells Fargo. With the new technology, you needn't bother to key in a deposit amount. You just insert your money into a slot and the machine sorts, counts and verifies it. Then, scanned check images and your total deposit amount appear on the ATM screen. You must confirm whether the amount is correct. If not, you can cancel your transaction. If canceled, the machine spits out your cash within 30 seconds, Velline says.
"I like the system much better based on my personal usage because it gives you back a picture," says Linda Sherry, spokeswoman for Consumer Action in San Francisco. "This is proof of the deposit."
Speedier transactions
Although ATMs that allow for no-envelope deposits cost more, they eliminate delays incurred by an envelope-clad deposit. This includes armored transportation to take deposits to a processing center, and the need for tellers to open envelopes and deposit money to accounts.
The new machines are creating a better experience for the customer, Velline said: 96% of people using more than 200 Wells Fargo no-envelope deposit ATMs in California were "extremely satisfied" as of the week of Sept. 17. The rest were "satisfied." Plus, he said, the machines let tellers spend more time with customers.
As with envelope-clad ATM deposits, 80% typically involve check deposits, and 20% are cash.
Velline admits that much like other types of vending machines, an ATM may reject an old or battered bill. It also will reject foreign currency. If that happens, the machine returns the bill and directs you to a branch.
Experience a mechanical failure or another problem while making a deposit? Wells Fargo's ATM logs a record of your customer information while you're in the middle of it. It also has a record of the machine malfunction.
The bank, he says, contacts affected customers the next day. Don't want to wait? Customers can call the bank's 24-hour hotline. Good customers, Velline says, may obtain an immediate provisional credit to their accounts.
But don't assume all machines and banks operate the same way with the same policies when it comes to no-envelope ATM deposits. For example, Velline notes that his machines, manufactured by Wincor Nixdorf, Paderborn, Germany, let you deposit up to 30 bills in any order and up to 10 checks at once. This may make for a much faster deposit transaction than Bank of America's. Also, Wells Fargo offers same-day credit for cash and same-day credit for checks -- even after banking hours.
Betty Riess, a Bank of America spokeswoman, confirms that its no-envelope deposit-accepting machines currently only allow for one bill to be inserted at a time. Bank of America plans to offer same-day credit for cash and deposits in the state in which the account is located "later this year," Riess says.
Where's the 'cancel' button?
The ability to cancel such a transaction is key, says Georgia State University law professor Mark Budnitz. Make certain you know in advance the location of the cancel button on the machine. His fears: As more of these machines get rolled out, some designs may not label this function clearly. Plus, all banks may not be so responsive if there is an error.
Be sure the receipt says the same thing as the on-screen information you confirmed, he says. Check monthly statements extremely carefully.
"The first time you try it, don't put too much cash in it," Budnitz advises.
What if there's a mistake concerning an ATM deposit on your statement?
Bank policies may vary. Your only option may be to provide notice to your financial institution of an incorrect electronic funds transfer and hope that your bank fixes it.
Based on federal law, timely notice must be given within 60 days after the first periodic statement reflecting the alleged error is sent.

Chase already has these in New York City. It is a lot easier to make a deposit without filling out the damned slip and envelope. And the scans of the actual checks on the receipt make for reassuring evidence that the deposit actually took place.

A lot of banks delay deposits made in ATMs, not to mention technical issues. If at all possible you should avoid depositing money in one of the machines.

[confused porn whore] Why would you use an envelope for ATM? What about all the paper cuts you would get in your mouth and ass? [/confused porn whore]

I've always been petrified of ATM machines. That's where people get robbed!

Bank of America has had envelope-free ATM's for a while. They're great. Insert wad of cash and it counts it up for you. Insert checks and it reads the amounts off of it and asks you to confirm. "Trust me" it announces. Hopefully one day they upgrade them with a needle to draw blood so I can make my mortgage payment there too. Seriously though I like 'em.

Why don't you just have your mortgage payment on auto withdraw?

I saw one in Japan at Postal Savings, it was the only place that foreigners could use their ATM cards. Now all 7-11's take them too.

^^7-11's in Japan? They have them there??