The PayPoint row shows no sign of abating as a number of retailers prepare to switch off their terminals in protest at the move to reduce caps on commission.

As retailers plan to take collective action on Friday 15 May, the National Federation of Retail Newsagents is advising its members to continue to accept payments from vulnerable customers.

But Harj Dhasee, of Nisa Mickleton, Gloucestershire, said a representative of PayPoint had told him that it was in breach of contract not to process transactions during business hours.

“He said there was a clause in the contract, but he couldn’t point to it. Apparently it depends on the contract.”

Harj switched off his terminal for four days last week and will do so again from tomorrow. He said customer feedback had been universally positive when he explained his decision.

The NFRN is to make a formal complaint about PayPoint to the Payment Systems Regulator (PSR), and is seeking a full market investigation into the Over-the-Counter Payment and Collection Services market. The PSR is an independent economic regulator and a subsidiary of the Financial Conduct Authority (FCA).

Meanwhile, PayPoint UK managing director Seamus Smith is set to leave the company for a FTSE 100 business, while retail director Andrew Goddard plans to “move on at a later date”.

“Neither of these developments is in any way related our commission policies,” a spokesman said