Payment System Regulator Changes to Point of Sale and Payment Companies Selling Practices 2023

The Payments System Regulator has brought in regulations to change how point of sale and card products are sold.

The Payment Systems Regulator Are Making Important Changes To How Card Payments Are Sold

When sales practices are so bad that a regulator has to act to change them, you know that an industry needs root and branch reform. The good news for retailers is that the Payments Services Regulator has acted on their behalf to alter the appalling practices of payments companies tackling the hidden charges, obscure contracts, tech-babble, and under-handed sales tactics that have been rife in how payment acceptance is sold for way too long.

From January 6th 2023 how payment companies, card terminal companies and POS companies sell is being forced to change. Specifically, the major changes are around contracts and how fees are explained. Here’s a synopsis:

  • From Jan 6th payment card and POS, companies will only be permitted to sign customers up to a maximum 18-month contract

  • Beyond their initial 18-month contract customers will automatically move onto a monthly rolling contract and will only have to give a month’s notice to cancel

  • Providers will have to give their customers reminders of when their contracts are due to expire and early termination fees must be clearly published and explained

  • Providers will also have to provide simple summary boxes of their card fees, making their fees transparent and easier to compare to other providers

  • Providers will have to provide an online quotation calculator so that their customers can clearly see what they will be charged

The details are available on the Payments System Regulator’s website

In our view, these are extremely welcome changes. AirPOSPay, our payments product that we’ve added to our point of sale system, is just over a year old. As with everything we do we have been completely open and transparent about our terms (no contract at all), pricing (a flat percentage with no extra charges) and hardware (a flat price, no terminal rental, etc.)

Basically, payment acceptance companies fall into two buckets; modern zero-contract payment processors with clear pricing and terms and old-school payment processing companies with lengthy and difficult-to-understand contracts, hidden pricing, and impossible-to-fathom terms. The contrast really is that stark.

The 14 companies who have been instructed to make these changes are

  • Adyen UK Limited

  • Barclays Bank PLC

  • Chase Paymentech Europe Limited

  • Elavon Financial Services DAC

  • EVO Payments International GmbH, Branch UK

  • First Data Europe Limited

  • First Merchant Processing (Ireland) DAC

  • GPUK LLP

  • Lloyds Bank plc

  • PayPal (Europe) Sarl et Cie SCA

  • Square UK

  • Stripe Payments UK Ltd

  • SumUp Payments Limited

  • Worldpay (UK) Limited

For PayPal, Square, Stripe and Sumup this simply means falling into line with how they publish pricing whereas for Elavon, EVO Payments, Adyen UK, Barclays and First Data Europe (who are Clover) among others, this will be a fundamental shift in business model and approach which is great for retailers. For downstream providers such as ePOS Now also who process their payments via Adyen the regulations will apply which is great news as ePOS Now are among the worst offenders in the industry when it comes to obscure pricing and

We see it all daily when quoting for AirPOS Pay. The retailer thinks they’re paying 0.8% per transaction for card services but when the mix of cards is taken into account, and especially when commercial cards are considered, it’s often two or three times this amount per transaction. And then you add terminal rentals. And then you add support. And suddenly the price you were quoted is somehow a fifth of what you end up paying.

If these regulations are the beginning of the end of these shady and outdated business practices we should all applaud on behalf of retailers everywhere.

If you’d like to know more about AirPOSPay our POS and payments solution please get in touch here https://www.airpointofsale.com/contact-us/

  • Share

All Posts

Next. Post

We’re changing retail forever, say hello to AirPOS Pay!