An ATM placement agreement is the contract between the ATM owner (operator) and the business where the machine sits (location owner). It defines who pays for the machine, who stocks it with cash, how the surcharge revenue is split, and how long the arrangement lasts. The most common structure in 2026 is a full-service placement: the operator supplies, vaults, and services the ATM, and pays the location owner either a flat per-transaction rebate ($0.50–$1.50) or a percentage of the surcharge (typically 10%–50%). Term length is usually 3–5 years with an automatic renewal clause.
If you are about to put an ATM into a gas station, bar, laundromat, or convenience store, on either side of the deal, the placement agreement is the single most important document you will sign. It decides whether the machine is profitable, who is liable when things go wrong, and what happens if the location owner changes their mind in year two.
This guide walks through every clause that belongs in a 2026 placement agreement, how revenue splits actually work in the field, the numbers independent operators are offering right now, and a plain-English template you can adapt. It is written for both sides of the deal: operators trying to build a profitable route, and merchants deciding whether to host a machine.
3–5 yrs
Typical term length for a full-service ATM placement agreement in the U.S.
$0.50–$1.50
Per-transaction rebate range paid to the location owner on a full-service deal
50/50
Most common split when the merchant loads their own cash (merchant-funded placement)
30–90 days
Standard notice window for non-renewal or early termination for cause
What Is an ATM Placement Agreement?
An ATM placement agreement is a contract between two parties: the ATM operator (the person or company that owns the machine and holds the processing account) and the location owner (the store, bar, or property where the machine physically sits). It is sometimes called a location agreement, site agreement, or placement contract, all the same thing.
Without one, you are running on a handshake. That is fine until the landlord sells the building, the surcharge rises, or the machine gets vandalized, at which point everyone has a different memory of what was agreed. A written agreement eliminates that ambiguity.
The three placement models
Before you read another word of the contract, you need to know which of the three structures you are signing. The contract changes significantly depending on who puts up the cash and who services the machine.
| Model | Who Owns the ATM | Who Loads Cash | Typical Merchant Payout |
|---|---|---|---|
| Full-service placement | Operator | Operator (vault cash) | $0.50–$1.50 per transaction |
| Cash-loaded placement | Operator | Merchant | 50/50 surcharge split |
| Merchant-owned (processing only) | Merchant | Merchant | 100% of surcharge, minus processing fee |
If you are not sure which model fits your situation, read our guide on how to start an ATM business, it breaks down the economics of each.
The 12 Clauses Every ATM Placement Agreement Should Include
Every well-drafted agreement covers the same twelve areas. If your template is missing any of these, push back before signing.
1. Identification of the parties
Full legal names of both parties, the business entities (LLC, corporation, or sole proprietor), and mailing addresses for notice. If the operator is an LLC, the location owner should verify the LLC is in good standing with the state. This avoids chasing a shell company if the operator disappears.
2. Location description
Exact street address of the site and the specific placement inside the premises (e.g., “north wall, adjacent to the beverage cooler”). Vague language like “inside the store” creates disputes when remodels happen. Include a line stating the location owner will not permit a second ATM within the premises during the term, this is the exclusivity clause, and it is non-negotiable for a full-service operator.
3. Term and renewal
Most agreements run 36 to 60 months. Shorter terms favor the merchant; longer terms favor the operator (who needs time to recover the cost of the machine). Specify whether the term automatically renews, 12-month auto-renewals with 60 or 90 days’ notice to cancel are standard in 2026.
4. Revenue split and payment terms
The core of the contract. State the exact dollar amount or percentage paid to the location owner per qualifying transaction. Define “qualifying transaction” explicitly, usually a cash withdrawal that generates a surcharge. Balance inquiries and declined transactions typically do not count. Specify payment frequency (monthly is standard), method (ACH direct deposit is expected), and the day of the month payment is due.
5. Surcharge amount and adjustments
The operator sets the surcharge, but the agreement should lock in the starting amount and describe how changes are handled. A reasonable clause: “Operator may adjust the surcharge with 30 days’ written notice, provided the rebate to Location remains at or above the amount stated in Section 4.” See our surcharge fees guide for typical market rates.
6. Cash supply and vault responsibility
Who puts the cash in the machine and who is responsible if it goes missing? In a full-service placement, the operator’s cash is “vaulted” in the ATM and the operator bears all shrinkage risk. In a cash-loaded deal, the merchant’s cash is in the machine and the operator’s processing records settle the amount. This clause should reference the typical cash fill amount and who audits it.
7. Maintenance, servicing, and uptime
The operator commits to servicing the machine, replacing paper, clearing jams, updating software, within a stated response window (24 to 48 hours is typical). Some agreements include an uptime guarantee (e.g., 95% availability) with a pro-rated rebate if missed. The location owner agrees to notify the operator promptly when the machine is down.
8. Utilities, power, and internet
An ATM needs a 110V outlet and a communication line (dedicated phone line, broadband, or 4G/5G wireless). State who pays for each. In 2026 most operators bring their own wireless modem so they do not depend on the merchant’s Wi-Fi, this clause should confirm that.
9. Insurance and liability
The operator typically carries commercial liability and cash-in-transit insurance. The location owner carries general premises liability. State the minimum coverage amounts ($1M per occurrence is standard) and require each party to name the other as an additional insured. Spell out what happens in the event of a robbery, smash-and-grab, or natural disaster.
10. Exclusivity and non-compete
The operator wants to be the only ATM on the premises. The location owner wants the freedom to kick out a bad machine. A balanced clause: “Location shall not permit any other ATM on the premises during the term, provided Operator maintains 95% uptime and pays all amounts when due.” Without that performance trigger, a merchant can be stuck with a broken machine for three years.
11. Termination and default
List the conditions under which either party can terminate early: non-payment, extended downtime, loss of processing, sale of the business, or material breach. Include a cure period (usually 10–30 days) before termination kicks in. On termination, the operator has 30 days to remove the machine, and the location owner cannot withhold it.
12. Assignment and change of ownership
What happens if the merchant sells the business, or the operator sells the ATM route? Most modern agreements allow assignment to a buyer of substantially all assets, but require written notice. This protects the machine’s value as an asset, a route with assignable contracts is worth more than one without.
How ATM Revenue Splits Actually Work
The number one question from location owners is “how much will I make?” The number one question from operators is “how little do I have to pay the merchant to win the location?” Both numbers depend on who is funding the cash and what the expected volume is.
Full-service placement: flat per-transaction rebate
This is the most common structure in the U.S. in 2026. The operator buys the machine, provides the cash, and services everything. The merchant gets a flat dollar amount per surcharged transaction.
| Monthly Transaction Volume | Typical Merchant Rebate | Example Monthly Payout |
|---|---|---|
| Under 150 | $0.25–$0.50 | $37–$75 |
| 150–400 | $0.50–$1.00 | $75–$400 |
| 400–1,000 | $1.00–$1.50 | $400–$1,500 |
| Over 1,000 (bars, clubs, high-traffic) | $1.50+ or 50% of surcharge | $1,500+ |
Cash-loaded placement: the 50/50 split
When the merchant stocks the machine with their own register cash, they share more of the surcharge, usually 50/50 after the operator’s processing fee. Example: a $3.00 surcharge with a $0.30 processing fee nets $2.70; the merchant’s half is $1.35 per transaction. At 300 transactions per month, that is $405, significantly more than a flat rebate, but the merchant carries the cash float and shrinkage risk.
Not every location should load their own cash. It only makes sense when the business already runs a cash-heavy register (laundromats, convenience stores) where the ATM replenishes from daily takings rather than requiring a separate bank trip. For everyone else, a full-service placement is less headache.
Free ATM Placement Agreement Template (2026)
Below is a plain-English template covering the 12 clauses above. Adapt the bracketed fields to your deal. This is not legal advice, have a licensed attorney in your state review the final version before either party signs, particularly if the deal is for a multi-location account.
ATM PLACEMENT AGREEMENT
This ATM Placement Agreement (“Agreement”) is made as of [DATE] between [OPERATOR LEGAL NAME], a [STATE] [ENTITY TYPE] (“Operator”), and [LOCATION LEGAL NAME], a [STATE] [ENTITY TYPE] (“Location”).
1. Placement. Operator shall install, maintain, and service one automated teller machine (the “ATM”) at Location’s premises at [ADDRESS], in the specific position mutually agreed upon in writing (the “Site”). Location grants Operator and its agents access to the Site during normal business hours for service, cash replenishment, and removal at end of term.
2. Term. This Agreement shall commence on the date the ATM is installed and remain in effect for [36 / 48 / 60] months (the “Initial Term”). It shall automatically renew for successive 12-month periods unless either party provides written notice of non-renewal at least [60 / 90] days before the end of the then-current term.
3. Compensation. Operator shall pay Location $[AMOUNT] for each Qualifying Transaction. “Qualifying Transaction” means a cash withdrawal from the ATM that generates a surcharge fee paid by the cardholder. Balance inquiries, declined transactions, and no-surcharge transactions do not qualify. Payment shall be made by ACH on or before the [15th] of each month for transactions processed in the prior calendar month.
4. Surcharge. The initial surcharge shall be $[AMOUNT]. Operator may adjust the surcharge with 30 days’ prior written notice to Location, provided the compensation in Section 3 is not reduced.
5. Cash Supply. Operator shall supply all cash required to stock the ATM and shall bear all loss, shortage, and shrinkage risk related to vault cash.
6. Service and Uptime. Operator shall respond to all service calls within 48 hours and shall target 95% monthly uptime. Location shall notify Operator within 24 hours of any outage or malfunction observed.
7. Utilities. Location shall provide, at its expense, a dedicated 110V electrical outlet. Operator shall provide and pay for data communication via wireless modem or equivalent.
8. Insurance. Each party shall maintain commercial general liability insurance of at least $1,000,000 per occurrence and shall name the other as an additional insured. Operator shall maintain cash-in-transit coverage on vault cash.
9. Exclusivity. During the term, Location shall not install or permit any other ATM, cash-dispensing device, or reverse-ATM on the premises.
10. Termination. Either party may terminate this Agreement for material breach upon 30 days’ written notice, if the breach is not cured within that period. Operator shall remove the ATM within 30 days of termination at its own expense.
11. Assignment. Neither party shall assign this Agreement without the other’s written consent, except that either may assign to a purchaser of substantially all of its assets upon 30 days’ notice.
12. Governing Law. This Agreement shall be governed by the laws of the State of [STATE]. Any dispute shall be resolved in the state or federal courts of [COUNTY] County.
Signed:
_________________________ [OPERATOR]
_________________________ [LOCATION]
Common Mistakes to Avoid
For operators
- Skipping the exclusivity clause. A second machine appears six months in and your volume collapses. Always lock it in.
- Agreeing to surcharge caps you cannot change. Processing costs and cash-in-transit fees rise. You need room to adjust.
- No written site diagram. The merchant renovates and moves your machine behind a column. Describe the exact spot in the agreement.
- Not defining “qualifying transaction.” Some merchants try to claim rebates on every swipe, including balance inquiries. Be explicit.
For location owners
- Agreeing to a five-year term with no uptime guarantee. If the machine breaks, you have no leverage. Tie exclusivity to uptime.
- Accepting a percentage-of-surcharge split on a low-volume site. Ten percent of nothing is nothing. A flat per-transaction rebate is more predictable at small sites.
- Letting the operator choose the machine placement alone. You know your traffic flow. Put the machine where customers will actually see it, read our guide on choosing the right ATM for your location to understand what drives volume.
- Not verifying the operator’s processor. Ask which ISO or processor handles the account. A legitimate operator will tell you immediately.
Frequently Asked Questions
Do I need a lawyer to sign an ATM placement agreement?
For a single-location deal with a reputable operator using their standard template, most merchants sign without counsel. For multi-location accounts (more than one store), or if you are the operator drafting your own template, spending a few hundred dollars on an attorney review is money well spent. State laws on automatic renewal and exclusivity clauses vary.
Who owns the ATM after the agreement ends?
In a full-service or cash-loaded placement, the operator owns the machine at all times and removes it at the end of the term. In a merchant-owned arrangement, the merchant bought the machine (see our ATM buyer’s guide) and keeps it. The contract is only for processing.
Can a placement agreement be month-to-month?
Yes, but operators rarely agree to it because they need time to recover the cost of the machine and installation. A month-to-month agreement is most common when a merchant buys their own ATM and contracts the operator for processing only.
What happens to the agreement if the location is sold?
It depends on the assignment clause. A well-drafted agreement requires the location owner to either assign the contract to the buyer or terminate with notice. Without that clause, a new owner can kick the ATM out on day one, which is why this clause matters for operators evaluating route purchases.
How do I know what rebate I should be offered?
Estimate your monthly transaction volume based on foot traffic and cash-heavy sales (bars, laundromats, clubs typically run highest). A general rule in 2026: if the operator is full-service and your site will do over 300 transactions a month, you should be getting at least $1.00 per transaction. Below 300 transactions, $0.50 is standard. Compare any offer against our ATM surcharge fees guide to sanity-check the operator’s numbers.
Bottom Line
The placement agreement is where an ATM deal actually lives or dies. Operators who rush the contract to close a location end up losing money on bad sites, exclusivity fights, and missing assignment clauses. Merchants who sign whatever is put in front of them end up locked into long terms with broken machines. Both sides benefit from a clear, written agreement covering all twelve clauses above.
If you are building out a route, your agreement template is part of your business, treat it as a living document and update it as your operation scales. If you are evaluating an offer as a location owner, print it out, put a red pen next to the twelve clauses above, and mark any that are missing. That conversation with the operator will tell you more about who you are about to do business with than any sales pitch.