Do any of you allow a transaction at an ATM to overdraw a checking account (an acct with overdraft protection)?

Some banks do. The thought process is if the check came in payable to a 3rd party, you'd pay it. Why not at the teller window, and so why not at the ATM?

Like or dislike OD programs, there are may thoughts on the pros and cons of this. I believe it is a bank's choice to allow it or not.

We do allow this option. At our ATMs we show two balances ...one with the OD protection and the other balance without. The customer at that point can do the transaction or opt-out. This ATM balance option has had a positive feedback from our customers.