Florida Credit Union Sees Benefits to Imaging ATMs

  While such megabanks as U.S. Bancorp and Wells Fargo & Co. have been making strides offering check-imaging functions at some of their ATMs, so have relatively small institutions such as Suncoast Schools Federal Credit Union.
  Tampa, Fla.-based Suncoast has deployed about a dozen ATMs that enable its more than 400,000 members to deposit checks and cash directly without envelopes. Suncoast deploys 200 Diebold Inc. Opteva ATMs, and by year end each will support check imaging.
  Suncoast is one of the early adopters of this technology, explains Leon Majors, president of Phoenix ESP Payments Research Group in Salisbury, Md. "Credit unions are all about cost savings," he says.
  By cutting costs, credit unions say they can deploy more ATMs further away from their headquarters to serve members, says Mike Shirk, manager of ATM product marketing at Diebold Inc., a North Canton, Ohio-based ATM maker.
  The market for imaging ATMs is poised to take off with credit unions and banks in 2007, Shirk says. By 2008 imaging ATMs will comprise 45% of large credit-unions' ATM networks and 31% of large banks' machines, according to Dove Consulting, a Boston-based consultancy.
  Though other experts say the check-imaging ATM market faces some growth hurdles, Dove says there are "many potential benefits associated with imaging check deposits, including cost savings, extended ATM cut-off times, reduced check fraud and increased ATM-deposit volumes, which have driven up investment in imaging ATMs."
  A number of factors caused Suncoast to push forward with new image-enabled machines. These include mandates for Triple Data Encryption Standard security, Americans with Disability Act requirements and Check 21 check-imaging legislation, says Maria Garcia, Suncoast senior vice president of automated services
  "We had a somewhat aging fleet in place a few years ago," Garcia adds. "Some had to be replaced completely, while the rest needed upgrading. It was a fairly logical decision to go with the new Optevas and turn to full-blown automation."
  Garcia declined to discuss how much the credit union paid for the check-imaging ATMs.
  NO 'PLUG AND PLAY'
  Wanda Chambers, Suncoast vice president of document services, notes that multiple players helped make project happen. "It took a lot of planning, cooperation and testing," she says.
  The credit union systematically addressed each piece of the puzzle, enlisting the help of Advanced Financial Solutions, a provider of image-based payment-processing products, for item processing; Visa Debit Processing Service for terminal driving; and the credit union's data-processing provider, Summit Information Systems.
  In October 2004, the credit union began testing the check-imaging ATMs among employees to find the optimal way to design the flow of the check and cash deposits, along with their accompanying screens. "Member acceptance has been very high," Garcia says. "So far our members have been very enthusiastic about the new functionality."
  Chambers adds that the credit union worked hard to educate its staff and members about the new system. This included a personalized session where a credit-union employee would help a member with the envelope-free deposit. The effort even went so far as to provide members with $1 so that they could practice using the bulk-note acceptor.
  To use the check-imaging ATMs, members can insert up to five checks face up, then any bills (up to 100 notes) either face up or down. Visa DPS software then shows the image of the checks and asks the user to verify if the amounts are correct for both the checks and cash. If they are not, the user can cancel the transaction.
  TOO MUCH DATA?
  Though the MICR line on the check image is blacked out on the receipt, some users have had concerns about the check images being shown on the thermal paper receipts. So now the Suncoast ATMs ask users if they want the images to be printed on the receipt early in the transaction.
  Once all of its deposit-enabled ATMs are live with check-imaging capabilities, Suncoast believes it will benefit from enhanced fraud-checking capabilities because it will be able to view the checks immediately. Checks also are submitted faster so returned checks come back more quickly. When deposits are made with envelopes, they are taken to a cash room, opened and manually sorted, adding to labor costs.
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