Payzone has backed down after retailers and the NFRN spoke out over the company’s plans to force all retailers onto new terms and conditions without any right to opt out.

Retailers who get in touch with Payzone will now be able to leave their contract.

Commenting on feedback to the contract changes, a spokesperson from Payzone told Retail Express: “We’ve listened to this, and are going to contact all of our customers and offer them the chance to get back in touch if they don’t want to extend their contracts.”

The news comes after a letter from the NFRN’s legal team accused payments service provider of breaking the Unfair Contract Terms Act 1977. The contract terms changes include additional charges, banning retailers from charging for card transactions and the ability to further change terms and fees with just seven days’ notice.

Payzone said it would: "Soon meet again with the NFRN to provide an update." However Retail Express understands that Payzone has not yet met the NFRN in relation to the contract changes, and that Payzone failed to respond to the NFRN within the time limits outlined in their letter.

Chard Newsagent owners Margaret and Les Gilbert joined other retailers in taking a stand against the new contracts by turning off their terminals. Speaking to Retail Express, Les said he was: “Pleased they’d done the right thing.” Adding: “It’s what we’ve wanted since the beginning. Right up to last night they were adamant there was no way out of the new contract, it seems they’ve had a change of heart.”

Despite giving Retailers the ability to opt out of the new agreement, issues with the contracts remain, including clauses which would allegedly make retailers break the Data Protection Act by providing store staff member's personal data to Payzone.

Retail Express approached the NFRN for comment and is awaiting their response. A tweet from the federation stated:

Describing the changes to its service which coincide with the T&C changes, a spokesperson for Payzone said: “Payzone has invested £10million in upgrading our retailer technology, allowing merchants to improve the range of services they can offer and increase footfall, with more robust security.”