PayPoint is to meet the National Federation of Newsagents in an attempt to bury the hatchet over recent transaction fee cap reductions.

As The Grocer went to press, PayPoint sales director Andrew Goddard said he was hoping to meet NFRN CEO Paul Baxter on 22 May.

“We are being highly accommodating but have not been able to secure a date,” he said.

The payment services company is anxious to head off the NFRN’s planned formal submission to the Payment Services Regulator, calling for a full market investigation into the over-the-counter payment and collection services market. Retailers have also launched a #PayPointPayFair campaign on Twitter.

An NFRN spokesman said it had yet to send off its submission because it was trying to get all the information together based on the facts.

PayPoint sent an open letter to retailers this week to clarify its decision to reduce transaction fees.

Goddard told The Grocer complainants were “a relative handful” and that Asda, Tesco, Sainsbury’s, The Co-op Group and One Stop had the same commission caps imposed.

“The value of PayPoint from inception has been about the value of footfall,” he said.

“The argument that has been put back is the value of the transaction. They are not taking the full value into account. We bring the customer through the door for the retailer to obviously sell their goods and services. There’s a compelling case for the value of those customers.

“What we are doing here is a consequence of commercial pressure we are under. We continue to drive more schemes and expanding the variety of retail services that help reduce the cost of PayPoint. I want to drive customer through the door and make it profitable for retailers.”