A automated banking machine (10) and method of operating the machine is provided. The method comprises causing with a terminal application, at least one transaction function device of the automated banking machine to operate through at least one communication with an XFS layer of the automated banking machine. The automated banking machine may include a cash dispenser and the transaction function may include dispensing cash. The method further comprises causing with at least one diagnostic application, at least one internal component of the at least one transaction function device to perform at least one function without communicating with the at least one transaction function device through the XFS layer. The internal function may include operating a motor or sensor of the cash dispenser.