Convenience industry trade group the Scottish Grocers’ Federation and payments service company PayPoint have announced that they are to set up a regular schedule of forum meetings from next year.
The parties plan discussions twice a year from early 2016, at meetings to be chaired by the SGF and held in Glasgow and Edinburgh, that will cover issues including commissions, bank charges, simple payments, fraud and communications.
PayPoint came under fire from many retailers earlier this year when it reduced the cap on commissions it pays to retailers on bills and budget payments from 13p to 10p and rates on many other payments from 10p to 7p.
Some retailers argued that the commission rates mean they end up losing money when they pay bank charges on the cash they deposit before it is transferred to PayPoint. The services company argues that the extra footfall its service encourages means it is commercially positive for retailers. But that argument is rejected by critics of the commission caps.
Since it announced the cuts PayPoint has said it plans to overhaul aspects of its service including switching to a freephone telephone number for the call centre that deals with retailer enquiries. The firm also runs the Collect Plus parcel scheme and other retail sevices.
In a statement on the SGF website the organisation’s chief executive Pete Cheema said the forum was part of constructive engagement with PayPoint and would be a step forward in finding workable solutions to challenges.
PayPoint’s Darren Tredgett said PayPoint was keen to work with all of its retailers and help them profit from PayPoint in store.
• What do you think? Can a forum address retailers’ issues on payment services? How can PayPoint help retailers profit from having its payments service in their stores?
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