PayPoint has found itself in the firing line for the second time in as many months as another terminal provider complains to the OFT about its exclusivity agreements.

Retail Gateway, whose parent company is Helperton, has written to the competition watchdog protesting about the 'bully boy' tactics it claims PayPoint uses to stop retailers using other terminal providers.

The move mirrors 3R Telecom's complaint last month about 'heavy-handed tactics'.

PayPoint was using its rights to London congestion charge payments to bully retailers into giving up long-standing deals with rival terminals, claimed Harry Rogers, sales director of Retail Gateway.

"PayPoint has told merchants that unless our terminal comes off the counter it will not let them do congestion charging," Rogers said. "It's a bullying tactic to get the customers to knock out terminals. We don't mind fair competition, but we've sat back and seen it going on for some time now and it's getting to a stage where we are getting fed up with it."

However, a PayPoint spokesman said: "Our contract has always said the retailers are signing up to the complete package and it's to be exclusive.

"We have a sheet of paper that states those terms specifically, so they are aware of it before they sign the contract. If they feel that is not what they want they are under no obligation to sign."