Independent retailers are urging PayPoint to reconsider plans to increase its service fee charge by 3.9% next month.
This week, letters are being sent out to PayPoint customers informing that the company had reviewed and decided to increase its service fee charges in line with the Retail Price Index (RPI).
At the time of the review on February 16 2022, RPI was confirmed at 7.8%.
In the letter to retailers, PayPoint informed customers that “of the broader cost pressures for our retailer partners, we feel it would not be right or appropriate to apply this in full”, therefore the utilities payment provider are raising its charge by 3.9%, whilst absorbing any additionally burden itself.
Senior members of NFRN were first made aware of the increase during a meeting with PayPoint management held last month.
At the meeting, NFRN updated PayPoint on the ongoing challenging trading environment that retailers are operating in and the low margins that retailers received in return for having a PayPoint terminal.
Commenting on the increase, NFRN national president, Narinder Randhawa emphasised his disappointment with PayPoint claiming this increase comes, “at such an economically challenging time for independent retailers everywhere.”
Randhawa added: “As each day goes by, it seems that independent retailers are being hit with one blow after another. We are already expecting huge hikes to our energy bills from April, coupled with increases in the minimum wage and associated employer contributions and the reintroduction of business rates.
“Now, despite being encouraged to do otherwise, PayPoint is adding to our financial woes by increasing its charges,” he said.
To mitigate the effects on independent retailers, NFRN will work with PayPoint on ensuring members are aware of PayPoint’s other initiatives they are running like PayPoint Counter Cash, MyStore+ and Love2Shop digital vouchers.
PayPoint are confirmed to attend NFRN’s spring national council meeting to be held in Birmingham in April.
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