C-store customer goes to machine on-site and gets a receipt for a $200 withdrawal from his account. However, the withdrawal is funded by taking the receipt to the cash register where the merchant gives him the funds.

One of our local banks had this mechanism 30+ years ago, but I have not seen it since. It was called COT, but I don't remember what the acronym meant; i.e. was it descriptive or just some marketing term.

What do you know about it? Is it currently in use? Do examiners have the same expectations regarding bank oversight that they would on a conventional ATM?

Bump

This sounds as much like a remotely printed certified check as an EFT, especially if nothing posts until/unless the merchant puts the "receipt" through in a deposit.

Ken - I don't have much to offer, but I have seen a couple in places I frequent, usually smaller locations that don't accept debit/credit cards. I always thought they were called script dispensers. Just my opinion, but I would think the exact same rules/monitoring would apply to this situation, maybe even more? I think of it as just the fact that the "ATM" doesn't have a vault/cassettes and the cashier is the "vault", so the cash is comingled with other sales money. I would think it would be harder to reconcile. However, I have no personal experience of it from the bank side.

Sounds like "Point of Banking" or "ATM Scrip" machines. http://km.home.texas.net/promedia.html

Thank you, that's what I needed.

I agree, it could be one step more difficult to monitor than an ATM that is stocked by the customer's drawer cash. It could also require the merchant to keep more cash on hand. The web site says the funds are credited directly to the merchant's account...the bank could require the merchant to set up a separate account for this purpose, but the difficulty with monitoring would remain.

Bringing - this one back into the fold -

Have your banks been seeing these being utilized more often? What are you doing to mitigate risks if you are?

Thanks,
Lindsay