Retailers across the UK are taking action to protect their profits after PayPoint defended its decision to cut commission caps on terminal transactions.
Marcus Bergin, owner of SuperNews in Gloucester, has put up a poster in his shop (right) telling customers he will refuse to process PayPoint transactions unless they make an additional purchase.
The move was supported by dozens of retailers on Facebook and Twitter, including Nisa Mickleton Village Store owner Harj Dhasee, who said he will also use the poster.
Meanwhile, Blantyre retailer Mo Razzaq is introducing a 20p handling charge for shoppers using PayPoint who don’t buy anything else.
He said: “With the banking costs as well, it’s got to the point where this is becoming unprofitable for me, so we have to introduce a charge.”
In addition, retailers were also gathering evidence to disprove PayPoint’s claims that its terminals are a footfall driver for stores.
Steve Barker, owner of S&J News in Rochester, Kent, monitored his customers for two days and found 50% of PayPoint customers didn’t purchase a single item.
At the same time, the NFRN has unveiled its ‘PayPoint, PayFair’ campaign in a bid to overturn the plans, and has launched a survey to gather data from PayPoint retailers.
With the banking costs as well, it’s got to the point where this is becoming unprofitable for me, so we have to introduce a charge
It follows on from NFRN chief executive Paul Baxter telling RN the organisation will refer PayPoint to the Competition and Markets Authority (CMA) on grounds of abuse of dominance.
Responding to RN, a CMA spokesperson said it could not comment on whether it would investigate the case but added it was “always willing to receive any intelligence from individuals or organisations”.
PayPoint also said it could not comment on the legal challenge and re-stated its threat to remove terminals from retailers who charge a handling fee.