Deputy Vice President of the Federation of Independent Retailers (the Fed), Hemanshu Patel, has cancelled his Payzone contract ahead of the firm increasing its fees by 3.5% from April.
The trade body expects other retailers to follow suit, describing the increase as “a bitter pill for Payzone retailers to swallow”.
Letters advising of hike stated that the increases to a weekly charge of £5.54 – and £8.85 for those offering card processing – are in line with its annual retail index price adjustment.
Hemanshu said: “Payzone has become an unsustainable service for retailers like me. The system is slow, unprofitable, and has seen little meaningful improvement over the years.
“With rising operational costs and better alternatives available, it simply does not make sense to continue offering this service in my store. Given the current economic climate, many small businesses will be forced to reconsider their partnership with Payzone, just as I am doing.”
