- An ATM placement agreement is the contract that says who owns the machine, who loads the cash, how the surcharge is split and how either side can end the deal.
- Common splits: a percentage of surcharge (often roughly 20-50% to the venue), a flat $0.50-$1.00 per withdrawal, a flat monthly rent, or a higher share when the venue loads its own cash.
- Split the surcharge only; interchange and your processor's fees are usually outside the venue's share, and the agreement should say so.
- The clauses that protect your route's value are term and renewal, exclusivity, low-volume removal, and survival through a sale of the venue.
- Use the sample clause list as a starting point, not legal advice; have a local attorney review your template once.
An ATM placement agreement is the short contract between you (the operator) and the venue that hosts your machine. It spells out who owns the ATM, who loads the cash, how much of each surcharge the venue gets, and how either side can walk away. Most deals give the venue somewhere around a fifth to a half of the surcharge, or a flat amount per withdrawal, and the details below decide whether that placement stays profitable for years.
Part of our complete guide: how to find vending machine locations.
This is a practical walkthrough, not legal advice. Laws on contracts, surcharge disclosure and business licensing vary by state, so have a local attorney review your template once before you use it at scale.
The five common deal structures
Every placement deal answers the same three questions: whose machine, whose cash, whose share. Here are the structures you will run into, from most operator-friendly to most venue-friendly.
1. Percentage of surcharge
You own the machine and load the cash. The venue receives a set percentage of surcharge revenue, paid monthly. Early placements at unproven sites often start near 20-30%; strong venues negotiate toward 40-50%. Some operators and placement companies offer 50/50 as a standard, especially at busy sites.
2. Flat amount per withdrawal
You pay the venue a fixed amount for each surcharged withdrawal, commonly around $0.50 to $1.00. It is easy for an owner to understand ("you get a dollar every time someone uses it") and it does not change if you later adjust the surcharge.
3. Flat monthly rent
You pay a fixed fee for the space regardless of volume. It suits proven high-volume venues, event organizers and landlords who want predictable income. On an unproven site it is the riskiest structure for you, because you pay in slow months too.
4. Merchant-loaded (venue supplies the cash)
You own and service the machine, but the venue loads its own cash, often from the till. You avoid tying up a float, so the venue earns a larger share, sometimes most of the surcharge. This works well for cash-heavy businesses that already have more cash on hand than they want. Our comparison of self-loading vs third-party vault cash covers the float side in detail.
5. Merchant-owned
The venue buys the machine outright and keeps nearly all of the surcharge after processing fees. Your role, if any, is selling the machine or servicing it for a fee. It is a sale, not a route asset, so it is outside the scope of most placement agreements.
If you would rather not draft the placement agreement from scratch, we keep a plain-English walkthrough at get vending machine contracts. It covers term, commission, exclusivity and how either side gets out.
What each split looks like at 250 withdrawals
Assume a busy neighborhood bar doing 250 surcharged withdrawals a month at a $3.00 surcharge. That is $750 in surcharge revenue before anything else. Here is the venue's cut and what is left for you before your own costs (processing fees, wireless, insurance, repairs and your time).
| Structure | Venue gets / month | Left for operator before costs | Who holds the float |
|---|---|---|---|
| 25% of surcharge | $187.50 | $562.50 | You |
| 50/50 split | $375 | $375 | You |
| $0.75 per withdrawal | $187.50 | $562.50 | You |
| $100 flat rent | $100 | $650 | You |
| Merchant-loaded, 60% to venue | $450 | $300 | Venue |
Now drop the same machine to 80 withdrawals ($240 surcharge revenue). The 25% split leaves you $180, the $0.75 per-withdrawal deal leaves $180, and the $100 flat rent leaves only $140, before costs. Flat rent looks great at high volume and painful at low volume, which is exactly why a new operator should avoid it on an untested site. For how the remaining dollars turn into actual profit, see how much ATM machines make.
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Start building free →Be exact about what gets split
Most disputes come from vague language, not bad intentions. Three items to spell out:
- Surcharge only. The venue's share should be calculated on surcharge income from completed withdrawals, not on interchange (the small per-transaction amount paid by the card network, often roughly $0.10 to $0.25), not on balance inquiries, and not on declined transactions.
- Before or after processor fees. Some processors deduct a per-transaction fee from the surcharge. Say whether the venue's percentage applies to the gross surcharge or the net after that fee. Either is fine; ambiguity is not.
- How it is paid and proven. Monthly by ACH or check by a set date, with a transaction report from your processor portal. Owners who can see the numbers renew; owners who have to ask start to wonder.
Sample clause list in plain language
Not legal advice. These are plain-language examples of what operators commonly include, written to show intent. Your final wording should be reviewed by a licensed attorney in your state.
- Parties and location. "Operator will place one ATM at [address], in the spot marked on the attached photo, or another spot both parties agree to in writing."
- Term. "This agreement runs for 36 months from installation and then renews for 12-month periods unless either party gives 60 days' written notice before the end of a term."
- Revenue share. "Operator pays Location [X]% of surcharge revenue from completed cash withdrawals (or $[X] per completed surcharged withdrawal), by the 15th of the following month, with a transaction report. Interchange and balance inquiries are not shared."
- Surcharge amount. "Operator sets the surcharge and will give Location 14 days' notice before changing it."
- Ownership. "The ATM, its parts, and all cash inside it belong to Operator at all times. Location will not move, open or alter the ATM."
- Exclusivity. "During the term, Location will not allow another cash-dispensing ATM on the premises."
- Access. "Location gives Operator access during business hours to load cash, service and repair the ATM."
- Power and space. "Location provides a standard electrical outlet within reach of the ATM at no charge. Operator provides the wireless connection."
- Low-volume removal. "If the ATM averages fewer than [60] withdrawals a month over any 3 consecutive months, Operator may remove it with 14 days' notice and no penalty to either party."
- Sale of the business. "If Location sells or transfers the business, Location will tell the buyer about this agreement and ask the buyer to assume it. Operator may assign this agreement to a buyer of Operator's ATM route."
- Early termination. "Either party may end this agreement if the other breaks a material term and does not fix it within 15 days of written notice. If Location ends the agreement early without cause, Location pays [a set amount, or the average monthly share times the months remaining, up to a cap]."
- Insurance and liability. "Operator insures the ATM and its cash. Location is not responsible for loss of Operator's cash unless caused by Location's own negligence or misconduct."
- Compliance. "Operator is responsible for surcharge disclosures, card-network rules and accessibility requirements for the ATM itself." (Our ADA and EMV guide covers the machine side.)
- Notices. "Notices go to the addresses and emails below and count as given when sent."
The four clauses that protect your route's value
Every clause matters in a dispute, but four decide what your route is worth if you ever sell it. Buyers of existing routes, as we cover in how to buy an existing ATM route, look hard at these.
- Term and renewal. A handshake is worth nothing to a buyer. A written term with renewal is a transferable income stream.
- Assignment. If you cannot assign the agreement to a buyer, the buyer is purchasing machines, not locations.
- Survival through a venue sale. Bars and small shops change owners often. Without this language, a new owner can ask you to leave on day one.
- Low-volume removal. This protects you from being stuck paying a share, or rent, on a dead site.
Keep the term reasonable, though. Owners have been burned by long auto-renewing contracts with steep exit penalties. A 2-3 year term with a fair removal clause for both sides is easier to sign and easier to renew.
Negotiating the split without giving away the site
Start with a tier, not a flat number. "20% up to 150 withdrawals a month, 30% above that" tells the owner you both win when volume grows, and keeps you safe if it does not.
Trade share for term. A venue that wants a higher cut can have it in exchange for a longer term or exclusivity on a second location they own.
Offer merchant-loaded as an option. Cash-heavy owners sometimes prefer to load their own cash for a bigger share. It frees your float for the next machine.
Here is an illustrative example of how that plays out. Tomas (illustrative, not a real operator) places his first machine in a liquor store at a flat 25%. At his third placement, a bar owner asks for 50%. Tomas counters with 30% up to 200 withdrawals and 40% above, plus a 36-month term. The bar runs about 230 a month, the owner gets a fair check, and Tomas has a documented, assignable site. Two years later, those written terms are the reason a buyer offers him a real multiple for the route.
Your next step
Draft one template, have it reviewed once, and bring two printed copies to every pitch. Then build a list of venues worth pitching: VendBuddy's location finder pulls bars, convenience stores, laundromats and smoke shops in any ZIP with the owner or manager contact. When you walk in, the scripts in how to pitch ATM placement to bar owners get you to the part where the agreement comes out of your bag.
Frequently Asked Questions
What percentage do bars usually get from an ATM in their store?
Many independent placements give the venue somewhere around 20 to 50 percent of surcharge revenue, or a flat amount of roughly $0.50 to $1.00 per withdrawal. Busy bars with strong volume can push toward the top of that range. The share is negotiable and often tiered by monthly withdrawals.
Should the venue get a share of ATM interchange fees too?
Usually not. Most placement agreements calculate the venue's share on surcharge income from completed withdrawals only, leaving interchange with the operator who owns the machine and supplies the cash. Whatever you decide, write it into the agreement so there is no confusion later.
How long should an ATM placement agreement last?
Many agreements run two to five years, often with automatic renewal unless someone gives notice. A term of about three years with a fair low-volume removal clause is a common middle ground. Very long terms with steep exit penalties tend to scare owners away.
What happens to my ATM contract if the bar is sold?
That depends on your agreement. Without a clause requiring the seller to pass the agreement to the buyer, a new owner may be able to ask you to remove the machine. Include sale-of-business language and an assignment clause so the placement survives ownership changes on either side.
Is there a free ATM placement agreement template I can use?
Equipment sellers and processors often share sample location agreements, and the clause list in this post covers the terms most operators include. Treat any template as a starting point, not legal advice. Have a licensed attorney in your state review your final version once, then reuse it.
If you want the templates done for you instead, the starter kit has the checklist and the fill-in templates in one download. It is a one-time $27, not a subscription.