Customer (convenience store) has an ATM it owns and services. They have a separate ATM account with us. Similar customers with ATMs have very clear patterns of daily ACH deposits, and weekly (usually) cash withdrawals from the account to refill the ATM. This customer transfers funds back and forth to the operating account, and has deposited some cash and checks into the account.

Thoughts?

Tell them if they want you to continue providing deposit services, you expect them to find the ATM solely with withdrawals of cash from the ATM account and keep is segregated from operating funds.

Or say nothing and manage the added risk and monitoring headaches this activity pattern will create.

Have customers like this. we asked them and they told us the machine is funded from register. Most do this as a convenience as well as avoiding any cash fees from bank. We simply monitor activity for any irregularities.