1756-HSC with open collector output encoder

I have a Red Lion model ZMD encoder which I would like to interface to a 1756-HSC card in a Logix rack. The input connection details are a little confusing however. One of the articles on the Rockwell knowledge base talks about using a pull up resistor the other shows the open collector output connected directly to the card please see attachments. Has any body had any experience with this card and could point me in the right direction?
Thanks in advance.

Both ways are OK for 1756-HSC.

Connection without pull-up resistors can be used with cards that have isolated return wires per each channel.