On numerous occasions Elan Financial has debited our business account for funds which ATM customers claim to have not received when they did a cash withdrawal at one of our ATMs. Not only do they debit our account with absolutely no proof from the customer to substantiate the claim (as in a bank or credit card statement actually showing the deduction) but they also assess a $40.00 service fee on top of it.
Instead of putting the burden of proof on the person who files the claim, they simply debit our account immediately, then MAIL a letter to us after the fact. Most of the time this is 2-3 weeks after the supposed incident occurred. We then have go to the ATM site and retrieve a journal entry showing that the machine actually dispensed the cash.
To make matters worse, the only way they will accept this journal entry is via FAX, then you have no way of actually following up with them to confirm that they received it. Needless to say each month people are able to rip us off by filing frivolous claims (with the help of Elan Financial's outdated and very suspect business practices).
When an ATM transaction is interrupted due to a communication issue, power surge, or because the machine has run out of cash there are times when the customer is charged for cash they don't receive. However, 99% of the time this charge is reversed within an hour and credited back to their account.
But Elan Financial is not interested in double checking this through the network data they have at their disposal. They are more interested in collecting their $40.00 fee and sticking the ATM owner with the loss of the $40 fee plus whatever amount the ATM customer wants to make up.
This is a shameful way of doing business and it's all about money. If Elan Financial actually put the burden of proof on the customer by making them submit proof that they were charged (and the funds weren't credited back) this nonsense would stop. But then they wouldn't collect these fees for doing absolutely nothing.
Here's the kicker. Even if an ATM owner is fortunate enough to actually get their money back for these false claims Elan still keeps the $40.00 fee. Thus they have no reason to actually use modern technology to track and make educated decisions about these claims. I would venture to say that only about 1 out of 10 claims are actually justified. But that doesn't matter to Elan Financial. They get paid on every one of them. This is NOTHING but a rip off and it's high time someone does something about it.
This is 2013, not 1983. Nobody requests journal entries on thermal paper copied and sent via fax to prove things these days! Unless, of course, it increases their revenue. I would like to end by saying that I know many other ATM vendors in this area and ALL OF THEM are beyond frustrated with this business practice being conducted by Elan Financial.