NFRN challenges Payzone over new retailer contracts

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The National Federation of Retail Newsagents (NFRN) has written to Payzone challenging the company’s attempts to “impose” new contracts on shop owners unilaterally.

The Federation believes that the changes brought in by Payzone will be an unnecessary burden on retailers and should not be introduced. The NFRN has called on Payzone to suspend the changes and discuss their aims.

Payzone provides thousands of convenience stores across the country with the facilities to accept card payments in store. The new changes set out by Payzone, in letters sent to retailers, will allow the company to make unilateral changes to contracts.

NFRN claims that Payzone is attempting to extend the contracts by three years, which it says ”deprives retailers of the rights to make the right business decisions.” The Federation goes on to say that retailers will find it harder to leave an existing contract and that Payzone is “unlawfully trying to exercise restraint of trade”.

NFRN has also said they are aware of some cases where retailers were not given seven days notice before the changes to the Payzone contract were due to take effect.

The Federation has stated that it will be supporting any retailers who wish to oppose the new contracts but “is acting only to inform members’ and does not encourage any action that would breach any contract”.

Readers' comments (5)

  • I get the feeling that these companies want into the mult trade as well as the independent sector

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  • That wouldn't surprise me RETAILER, with ongoing changes in the convenience market the temptation must be there for companies like PayPal to change their offer and enter the multiple supply chain.

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  • Problem with that theory guys is that multiples employ accountants who know the sums don't add up.

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  • Daisy

    That depends on whether the figures for the maths are the same for a national chain as they currently are for an independent retailer...the landscape has already changed a great deal in eight months with further scope in this sector for more upheaval so it is not necessarily unthinkable.

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  • The PayPal business model is based on independent retailers being prepared to do the job for less than cost. There just isn't enough money in the process for PayPal to be able to offer the mults a viable deal. Offering the service is a loss leader claimed to build footfall but the big guys would rather control loss leaders in house. James would have more luck selling ice to eskimos than selling The PayPal service to the financial director of Tesco.

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