Nells20, I suspect that you were correct in your original post. The card went through the machine and it is set up to NOT cancel stamps put in the correct place. Here is a stamp show postcard I received last week. The Charlotte canceller is set up the same way.
Wonder why they are losing money? I guess "nobody is home".


An afterthought: The U.S. Postal Service has no doubt spent a considerable amount of money on this automated equipment, and the effect of not caring to set it up properly completely voids any efficiencies it could bring.