TL;DR:
Before you turn on cashless, confirm (1) You have all your documents ready (2) your true all-in fees, and (3) how fast deposits hit your bank.
Payment Processing for Vending Machines: What Operators Should Know Before Turning On Cashless
Collecting payment is an integral part of any vending business, but the setup is often misunderstood and overlooked. I spoke with Jeremy from Intera Payments about how payment processing works - what you need to have ready to get approved, what fees actually show up, and what to ask before you turn on cashless.
1) What you need ready to get approved
Before a processor can activate card/tap payments on your machine, you’ll typically be asked for a basic set of business and banking items. Jeremy’s practical list:
- Proof of business (what qualifies varies by provider)
- Government ID (e.g., driver’s license)
- Void cheque / bank details for deposits
- Sometimes proof of placement
- A clear customer contact method (so a customer can reach you if there’s a failed vend or dispute)
Operator takeaway: If you don’t have a clean way for customers to contact you, disputes escalate faster. Put a simple support email/phone method in place before install.
2) What fees actually show up (beyond the headline “rate”)
Jeremy separated this into two buckets: fees tied to each purchase, and operational fees that show up monthly/quarterly.
A) Per-transaction costs
- Many vending setups are sold as a flat % model rather than true interchange-plus.
- Some providers structure it as % + a small per-transaction amount.
- Debit can be priced as a flat cents amount, depending on the setup.
Operator takeaway: Don’t compare processors on the percentage alone. Get the full pricing structure in writing and run it against your average vend price and monthly volume.
B) Operational fees
Jeremy called out fee types operators should expect and ask about directly:
- SIM/cellular/data fees (depending on who supplies connectivity)
- Statement fees (sometimes negotiable based on route size/volume)
- PCI compliance fees (can be billed monthly, quarterly, or annually depending on provider)
- Chargeback-related fees (a common “hidden fee” area if you don’t ask upfront)
Operator takeaway: Ask, “What are all non-transaction fees I’ll see over a year?” and make them list them.
3) Funding speed and why it matters operationally
Jeremy emphasized that deposit timing can matter as much as rates - especially for operators funding inventory and restocks. Slow deposits can add friction when you’re trying to keep machines full and handle service quickly.
Questions to ask any processor:
- What’s the deposit schedule (next day, 2–3 days, weekly)?
- Under what conditions are funds held?
- What’s the workflow for disputes/chargebacks?
- Do I get an online portal to see daily transactions and exceptions?
Operator takeaway: Daily visibility + predictable deposits reduce the chances that payment issues become service issues.
4) A simple checklist before you turn on cashless
Use this checklist before you commit:
- Approval requirements: proof of business, bank details, ID, placement proof (if requested)
- All-in cost: % + per-transaction + SIM/data + PCI + statement + chargeback fees
- Reporting: daily portal access, exports, debit vs credit breakdown
- Dispute handling: failed vends, customer contact path, chargeback process and fees
- Connectivity reality: confirm the machine will have stable service where it’s installed
Jeremy, thanks for the clear, easy-to-understand walkthrough on vending machine payment processing and how cashless vending works at the machine. This kind of practical breakdown helps vending operators understand what they need to get approved, what credit card processing fees and other payment processing fees actually show up on statements, and what to confirm before enabling tap-to-pay and card payments across a vending route. If you have questions about payment processing for vending machines, pricing, deposits, or setting up cashless payments on your machines, reach Jeremy at jeremy@interapayments.com.
Next step:
If you’re securing new placements, treat payment processing as part of the install-readiness checklist (right alongside power access and connectivity). When you’re ready to add locations, review active opportunities on Vending Village and the transaction process so you know what “ready to install” should look like: https://vendingvillage.com/ and https://vendingvillage.com/p/guide-transaction-process.