The NFRN has 15,000 members and is concerned over changes to Payzone’s revised contract

Payzone has scrapped plans to impose a new three-year contract on retailers after facing a legal letter from the National Federation of Retail Newsagents (NFRN).

Lawyers for the NFRN, which has 15,000 members, wrote to Payzone expressing concerns over plans to impose a new three-year contract with no option to exit without penalty. The federation also said proposed new contracts ‘significantly changed’ terms and conditions and affected fees, access rights and data sharing. 

NFRN national president Linda Sood said it had been contacted by members who were angry at Payzone’s attempt to impose the new contracts. She said the trade association would stand behind members who wished to take further action.

NFRN chief executive Paul Baxter said: “These contracts amount to one of the most egregious attempts to impose unfair contracts upon retailers that I have seen in more than 35 years working in the retail sector.”

However, Payzone has responded to the concerns by pledging to contact customers and offer them a chance not to extend their contracts, as well as vowing to meet with the NFRN.

Payzone said the new terms and conditions had been introduced because of a new tablet rollout.

“Payzone has invested £10m in upgrading our retailer technology, allowing merchants to improve the range of services they can offer and increase footfall, with more robust security,” said Rupert Lowery,

“During our initial rollout of the new technology, a small proportion of our merchants as well as the NFRN raised some points with us about the new terms and conditions we’re offering. We’ve listened to this, and are going to contact all of our customers and offer them the chance to get back in touch if they don’t want to extend their contracts.”