Payzone is to increase its weekly fee for stores using its legacy terminal by more than 200% to £2.99 per week starting on 27 March.
An email from the firm’s commercial director Simon Lambert, sent on 27 February and seen by Better Retailing, announced the rise from 99p to £2.99, while also stating it would be scrapping and simplifying unspecified “additional contract charges”.
Stores will automatically rollover to the new price unless they contact Payzone in the 30 days following the 27 March to have Payzone services removed from their store.
Payzone pledged it would not charge early termination fees to those that opt out of the service rather than pay the increased weekly fees.
Arif Ahmed, from Ahmed Newsagent in Coventry, told Better Retailing: “Indie retailers are going to lose out. I can’t see many retailers taking this contract when we’re subsidising the network for them and it’s the cost-of-living crisis. We’re struggling and not getting any commission.”
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An upgrade to a Payzone Plus device, with exclusive free services like Jisp Scan & Save, was also offered at £4.99 per week, £3 lower than the £7.99 weekly fee currently advertised on the company’s website.
Lambert revealed that selected Payzone Plus stores will also receive access to Post Office drop and collect services, which he said would “attract more customers with convenient parcel drop-off and collection locations”.
A spokesperson from Payzone said: “Over the last few years, Payzone has significantly expanded their partnerships, giving retailers’ customers access to more services than ever before. From March 2023, these fees and charges are changing to reflect the growing variety of services available through the Payzone device. They have, in tandem, simplified many of the additional administrative charges, removing them from the terms and conditions.”
Additional fees being axed from Payzone’s terms and conditions include the set up costs, engineer visits, promotional materials, and training and administration.
Better Retailing understands Drop and Collect services are only available to Payzone Plus stores within ‘postcode gaps’ in its network.
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