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Payzone services at risk after fee rise, Fed warns

Hemanshu Patel representing Fed’s response to Payzone fee hike 2025

Fed’s national deputy vice president Hemanshu Patel

The Fed

Independent retailers will seriously think twice about providing Payzone services in their stores following the news that the company is increasing its fees by 3.5 per cent from April, the National President of the Federation of Independent Retailers (the Fed) has warned.

Letters advising of the increase have been arriving with members since the beginning of this month. They state that the increases to its weekly charge to £5.54 – and to £8.85 for those offering card processing – are in line with its annual retail index price adjustment.


Payzone says that the move will enable the company to continue investing in service improvements, security updates and partnerships that bring value to its network of retailers.

Describing the increase as a bitter pill for Payzone retailers to swallow, Mo Razzaq said, “Members who are affected by these fee increases may seriously think twice about continuing to offer Payzone services.”

They took effect as businesses prepared to face the perfect storm of higher wage costs and rises to employers’ national insurance contributions, Razzaq continued.

The Fed’s national deputy vice president Hemanshu Patel added that he had already cancelled his Payzone contract.

Mr Patel 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.”

It was reported in July last year that Payzone has partnered with Strathclyde Partnership for Transport (SPT) to provide easy access to newly modernized ZoneCard tickets for public transport across the Strathclyde region.

The partnership was expected to benefit both retailers and customers, with increased footfall into stores resulting in a boost to local business and community engagement.