Retailers have called for a decrease in low usage charges from the Post Office following its decision to take over Payzone's bill payments service.

According to the Post Office, the acquisition, which is still subject to approval by the Competition and Markets Authority (CMA), promises to offer shoppers greater convenience and access and help drive footfall.  

However, Andy Banks of Andy's News in Rotherham told RN this will not be possible without bringing down low usage charges first.

"If the Post Office can bring low usage charges down and increase the commission retailers receive, that would be a positive step forward," he said. 

"We’ve been having issues with Payzone regarding terminals, so if the Post Office introduces a new system that is compatible with our needs, that too would be a good thing."

Meanwhile, Arif Ahmed from Ahmed Newsagents in Coventry, told RN despite the Post Office being a credible company to take over the business, he shares the same concerns. 

"Every month I am charged £14.36 plus VAT for not hitting targets. It's hard to meet targets because Payzone has never been concerned about competition and are happy to give anyone who wants the service a terminal –  this makes it hard for everyone in the area to compete."

A Post Office spokesperson confirmed that both networks will continue operating under the terms they have in place with their respective providers.

The spokesperson told RN: “However, over time and as part of an ongoing exercise, we will be reviewing things like charges to agents, to ensure they are appropriate and fair."

The NFRN has said it will monitor the progress of the review and the subsequent merger and will look to ensure independent retailers are not disadvantaged. 

Read more: Post Office plans 'win-win' Payzone acquisition