Good to Know

Does it matter what you call the agreement that the merchant signs?

NetPay provides a merchant with the opportunity to offer their customers the ability to pay by card. This is done by routing payments through a terminal or our payment gateway.

This forms the basis of our service offer.

In order for NetPay to provide this service to merchants, there are two things that are essential.

  • The card services agreement/online payment services agreement
  • The merchant account agreement

    Card Services Agreement





    The card services agreement relates to the card terminal, the method by which the merchant can take card payments.

    NetPay works in partnership with PayTek, a company who finance the cost of the card terminal that NetPay provides to the merchant.

    The merchant makes a monthly payment to PayTek for the use of the card terminal. The card terminal is needed in order for NetPay to provide merchant services to the merchant.

    The card terminal does not belong to the merchant, nor will they own it at the end of the 36 or 48 month term.


    Online Payment Services Agreement

    The NetPay Logo



    The online payment services agreement relates to an electronic payment gateway, the method by which the merchant can take card payments via a payment portal or an eCommerce website.

    NetPay own, and manage, their own fully PCI Compliant Payment Gateway which allows merchants to setup their own online platforms to take transactions.

    The merchant makes a monthly payment for this service. If you are an Indirect Reseller, NetPay will bill the merchant on your behalf

    If you are a Wholesale Reseller, NetPay will bill you, as the reseller, for the service. It is then your responsibility to bill your merchant for the service.

    An Online Payment Services Agreement is a fixed 12 month term, which can be renewed at the end of term

    The merchant can be setup for services (MOTO & eCommerce) through a single service agreement. If they wish to add one or the other at a later stage, this can be added to their existing service.

    Merchant Account Agreement



    First Data provides the acquiring services to the merchant, allowing the card terminal to authorise payments with the card issuer and card scheme.

    In order to get a merchant account, a reseller completes an application form on behalf of the merchant and the account is either accepted or rejected. The agreement that the merchant signs is an agreement between them and First Data. Broadly, the merchant agrees for First Data to process payments and to settle funds, for set charges that are agreed with the reseller at boarding.

    The merchant account is vital to allow NetPay to provide merchant services to the merchant.

    What’s in a name?

    good_to_knowNetPay is providing merchant services – the ability for the merchant to take credit or debit card payments for their goods or services.

    As part of that service offer, equipment (card terminal) and an account (merchant account) are necessary to facilitate the merchant services.

    So, yes, it does matter what you call the agreement that a merchant signs.

    It is not a lease agreement, a hire agreement or a purchase agreement.

    It is a service agreement.

    A Merchant’s Rights

    The Consumer Credit Act 1974 regulates most consumer credit agreements and consumer hire agreements with individuals. These individuals include sole traders and small partnerships.

    Business that are not a sole trader or partnerships consisting of two or three people or an unincorporated body of persons – i.e. not a company – do not attract any rights under the Consumer Credit Act.

    As the agreement that the merchant has signed is a card services agreement, this operates outside of the Consumer Credit Act. This means that any merchant who is not a sole trader, a small partnership or an unincorporated body of persons is not able to cancel the card services agreement.

    Similarly, the merchant account application form that was signed during recruitment is for the provision of a service, and therefore falls outside of the Consumer Credit Act also.



    As we know the merchant has signed a service agreement, neither the card services agreement or the merchant account is subject to the Consumer Credit Act and there is no cooling off period.

    A merchant can cancel – let’s look how.

    Card Services Agreement for Card Terminal

    Merchant can cancel, however it will cost 95 percent of the remaining period of the card services agreement.

    Scenario – A newsagent has a merchant services agreement with NetPay, and are 12 months into a 48 month term. The business owner wants to cancel. They would have to pay 95 percent of the remaining 36 month period.

    Merchant Account for Acquiring Services

    Again, the merchant can cancel.

    A merchant who has a turnover of less than £2 million a year may give one month’s notice to First Data.

    A merchant who turns over more than £2 million a year must have completed 12 months of the term, and must give one month’s notice.

    Please note, if a merchant cancels their merchant account, they are still liable for paying 95 percent of the remaining period of the card services agreement.

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