Bank of America Corp. has started replacing its ATMs in Orange County with machines that automatically scan checks for deposit.
The ATMs cut the need for envelopes and don’t require depositors to tally the amount of checks in a deposit.
The move is part of Bank of America’s plan to replace about 2,000 of its 17,000 ATMs nationwide. Eventually, it plans to replace all of its ATMs.
The bank declined to say how many ATMs in OC are being replaced.
Bank of America has more than 90 local branches plus standalone ATMs.
The bank has been putting the ATMs in California since the start of the year, spokeswoman Betty Riess said.
“There’s been a positive response everywhere so far,” Riess said.
Bank of America isn’t saying how much it’s spending to install the machines. Trade publication Financial Services Technology estimates costs of $10,000 to $15,000 to convert each ATM.
The new ATMs could save Bank of America and other banks about $1 per transaction by cutting manual processing of deposited checks and the need for envelopes, according to consultant TowerGroup Inc. of Needham, Mass.
The ATMs should cut reliance on tellers and deter fraud from “empty envelope” deposit scams.
The machines scan checks as they’re inserted and record amounts. For a series of checks, the ATMs tally up the total deposit.
For depositors, there’s no more stuffing envelopes, filling out slips and entering totals via a keypad. Copied images of the checks are given as receipts.
There’s a learning curve.
Lines have formed at some spots as ATM users fumble with the new process.
Some business owners and others depositing multiple checks say the process takes longer and isn’t as easy as putting all of them in an envelope.
Bank of America has sent “ambassadors” to spots with new ATMs to help people use them.
A new ATM at a Bank of America in Irvine next to John Wayne Airport got mixed reviews.
“There’s no instructions,” said Jim, a retiree in his 60s who only gave his first name. “It took longer than normal. I’m not sure I want to use it again.”
Terri Fernandez, a legal assistant on her lunch break, had an easier time.
“Making deposits has never been easier,” she said.
The ATMs are designed to save people time, according to Bank of America. The technology is called “check imaging” or “envelope-free deposits.”
Rivals Wachovia Corp. and Wells Fargo & Co. also have introduced check scanning at some of their ATMs.
Deposits are up by 50% at machines with the scanners, according to Bank of America.
“When customers see an image of their checks on their receipts, they’re more confident that the deposit has been accepted and they have assurance in hand,” said Kirk Lindsey, Bank of America’s ATM executive.
