The row between PayPoint, the utility payment network, and independent retailers over margins is blowing up again.
The furore has been sparked by the introduction of new services from PayPoint utility clients with retailers complaining about commission terms.
As was the case previously with its other services, PayPoint is continuing to offer retailers 0.5% commission for each transaction, capped at 13p for payment up to £99, despite being inundated by complaints from retailers over the last two years.
Now, in a letter to PayPoint, seen by The Grocer this week, Jim Botterill, chairman of Botterills Convenience Stores, said: “This leaves me with the lack of belief you will try and do anything about commissions when you renegotiate contracts with the utility companies in October as promised.
“My feeling at this time is that I will be raising the matter with Spar, the Association of Convenience Stores and the Scottish Grocers’ Federation.”
Botterill also complained that margins were being further eroded by bank charges for money made on services.
Spar MD Jerry Marwood said the symbol group was currently negotiating with PayPoint over new services. He said: “It’s well known that the product is not efficient or economically viable. That PayPoint is growing its range at this point is stupid.”
He warned PayPoint that unless it re-considered terms it ran the risk of losing its business even with independent retailers. That, in turn, could lead to vulnerable sections of the UK community losing access to utility payment facilities.
No one from PayPoint was unavailable to comment.
The furore has been sparked by the introduction of new services from PayPoint utility clients with retailers complaining about commission terms.
As was the case previously with its other services, PayPoint is continuing to offer retailers 0.5% commission for each transaction, capped at 13p for payment up to £99, despite being inundated by complaints from retailers over the last two years.
Now, in a letter to PayPoint, seen by The Grocer this week, Jim Botterill, chairman of Botterills Convenience Stores, said: “This leaves me with the lack of belief you will try and do anything about commissions when you renegotiate contracts with the utility companies in October as promised.
“My feeling at this time is that I will be raising the matter with Spar, the Association of Convenience Stores and the Scottish Grocers’ Federation.”
Botterill also complained that margins were being further eroded by bank charges for money made on services.
Spar MD Jerry Marwood said the symbol group was currently negotiating with PayPoint over new services. He said: “It’s well known that the product is not efficient or economically viable. That PayPoint is growing its range at this point is stupid.”
He warned PayPoint that unless it re-considered terms it ran the risk of losing its business even with independent retailers. That, in turn, could lead to vulnerable sections of the UK community losing access to utility payment facilities.
No one from PayPoint was unavailable to comment.
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