Independent retailers are set to benefit from better credit and debit agreements following a deal between electronic payment provider PayPoint and Lloyds TSB.

Now each time a customer purchases goods by card, retailers will be charged a maximum of 1.4% on credit card payments and 14p on debit card payments.

Customers who pay for goods with credit and debit cards spend more money in-store than those who pay with cash, PayPoint said, so allowing customers to pay by card would increase basket spend for retailers.

"This new deal is part of our commitment to deliver the best-value services to our retailers," added Mike Igoe, retail director for PayPoint. "These new rates are PayPoint's best ever and we encourage our retailers to take advantage of this highly competitive offer."

Meanwhile, rival company Payzone has hit a further crisis. It has received an EGM requisition notice from shareholders to remove David Mills as a non-executive director.

The notice follows a boardroom row at Payzone when, after being sacked in January, chief executive John Nagle and chief finance officer John Williamson took legal action claiming breach of contract. Williamson has since dropped his case but Nagle is fighting on.