An automated banking machine operates responsive to data included on user cards. The machine includes a deposit accepting device. The deposit accepting device is operative to receive a stack of sheets and to separate each sheet from the stack through operation of a picker. Each sheet is aligned with the sheet path and analyzed by analysis devices including at least one magnetic read head, an imager, and/or a validation device. Sheets determined not to have at least one property of a genuine sheet are returned to the user of the machine. Sheets determined to have the at least one property of a genuine sheet are processed and stored in the machine for reuse.