An automated banking machine (10) includes a user interface (15). The user interface includes a card reader (16), receipt printer opening (30), cash dispensing opening (38) and deposit accepting opening (40). A stack of notes (84) input to the machine are separated one by one from the stack through the action of at least one picking member (158, 352) and at least one stripper member (64, 162, 354). The actions of non-contact stripper rolls and a contact stripper roll are generally effective to only enable a single note to move past the stripper members. Upon sensing that multiple notes have moved past the stripper members with a sensor (176, 366) the system is operative to return notes to the stack for subsequent picking trials. In some cases the stripper members may be driven so as to move notes engaged therewith relative to a note engaged with the stripper member so as to reorient the notes and facilitate note separation in subsequent picking events.