Scottish Grocers’ Federation has contacted all its retail members to make them fully aware of the new changes to the terms and conditions of PayPoint Retailer Agent contracts.
The Federation is seeking to ensure its members have as much information as possible before they make decisions which could have a crucial impact on their long-term business strategy.
A Retail Agent will be deemed to have accepted the full terms of the Contract Variation unless they terminate their contract prior to June 1, 2017. The changes are listed in a new ‘Booklet of Terms’ for retailer agreements. The new contracts will last for five years with a two-year cancellation period. Typically, the new service fee will be £10 per week rather than the previous £10 per month.
Chief Executive Pete Cheema said: “As the national trade association for the industry in Scotland we need to ensure retailers have all the information they need. At the end of the day only retailers can decide what is best for their business but they should go through a checklist to see if PayPoint is providing the right solution at the right price. Does it encourage footfall, does the PayPoint-related basket spend really make a profit, does the commission rate cover the overall transaction cost, does PayPoint provide enough flexibility in terms of other providers they could deal with? Retailers should answer all these questions before they sign up.”
In 2016 PayPoint generated revenue of over £212m.