PayPoint to start charging retailers for terminals

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PayPoint is to introduce a monthly charge for the familiar yellow terminal in a bid to encourage take-up of its next-generation PayPoint One system.

From June 1, all users of the established terminal will be charged £10 a month, which compares to £10 per week for users of PayPoint One. There will be no additional charge for retailers who have PayPoint functionality integrated within their symbol group’s epos system.

The company says the move is part of a programme to update old technology across the estate and that any retailer who does not wish the pay the charge will have the option of leaving the network and being released from their contract without penalty. In due course the old yellow terminal boxes will be withdrawn altogether, although there is no set timetable for this yet.

PayPoint commercial director Lewis Alcraft told C-Store: “We are very proud of the yellow boxes, but they are 13 years old now and we wont be able to support them forever. Some of them still use dial-up technology, and they are going to become increasingly inflexible for the services we provide, and increasingly costly to support.

“We understand however that PayPoint One is not right for everyone, and retailers will be able to walk without cost if they feel that it is not what they originally signed up for.”

The PayPoint One system combines the brand’s payment technology with an entry-level epos system. There are currently 3,500 live sites, and later this year PayPoint will roll-out an enhanced ‘Pro’ system using cloud-based back office and better connectivity than the ‘Core’ version currently in use.

“The flexibility of PayPoint One is significant, we definitely think of it as an enabler for retailer,” added Alcraft. “PayPoint in the early days was all about footfall and commission, but now it is about cost-effective access to card services, and epos to make the stores run more efficiently, and that in turn drives benefits to retailers.”

Readers' comments (4)

  • So they are going to start charging for something that by their own admission is obsolete technology? Seems like a very strange business model. Why do retailers want to do business with this company? If they can move the goalposts like this they can do it again when they decide PayPoint One is obsolete,

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  • I agree with Pr Calba we are paying for their equipment that is making their job easier. I have been a paypoint agent for 17 years with no problems, the level of commission is being exceeded by banking charges now with these additional charges its time to say goodbye Paypoint. I have spoken to a number of retailers around my area and we are all of the same opinion so I think they should review these forced charges or lose a lot of business. It says something if the likes of Tesco, Morrisons etc wont entertain them - because theres no money in it !!!
    Howard Coffey
    Budshead General Stores
    Plymouth

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  • I am a new business owner, I had to sign up for new system paying about £52 inc vat monthly rent for their machine and Card machine services which they forced me to sign up for with Lloyds who card processing charges are way more than their competitors when I had to be signing up I was told they don't charge me for paper roll and PCI compliance now I'm having to pay for Paypoint rolls and monthly PCI.

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  • This is tottaly unacceptable charge from paypoint. They charge us for montly and for paper rolls now?! The little commisons we earn dont even pay for paypoint chargers.
    Monthly charges
    Paper toll charges
    Bank charges
    Basicly they dont want retailer to earn single pence out of paypoint terminals! Over the phone i have been told its a ‘company decision’ and nothing else.. well i can see its a company decision, but they cant explain why they have these charges on top of montly standard charges!!!
    All retailer have to make formal complain about paper roll charges! Monthly standard charges should cover the paper rolls businesses use!
    Spare minute of your self and make a complain!
    Their e-mail: enquiries@PayPoint.com

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