An automated de-banding machine which can perform by scanning the surface of the pallet to determine the number and position of bands to be removed. The machine also is capable of analyzing to determine the overlay bands from underlay bands. The overlay bands are removed first and typically fed individually to a chopper which chops the bands into pieces for recycling. The band information may be recorded and used to facilitate handling of a similar type of pallet in future operations to eliminate any stoppage for determination of retooling or adjustment.