A Guide: Payment Services

Framework Contract

A framework contract is a contract governing the future execution of individual and successive payment transactions.

Ending a framework contract & possible charges

You can cancel your contract at any time, unless a certain period of notice has been agreed. Such a period of notice cannot exceed one month. If your contract has been running for 12 months or more and this contract is for a fixed period of 12 months or the length of time is not specified, you will not be charged for ending the contract.

Any future regular service charges for the running of the payment services may be charged, but if you have made any such payments in advance they must be returned on a pro-rata basis. Any charge that is made as a result of ending the contract must be proportionate to the payment service provider’s actual costs.

The payment service provider must give at least two months’ notice of termination on a framework contract that is not for a defined term.

Changes to a contract

The service provider is required to advise you of any changes to the conditions of your contract no later than 2 months before the changes are due to take place.

In some instances, the contract between yourself and the payment service provider may state that changes are to be made without your agreement. The service provider still needs to advise you of the changes no later than 2 months before the changes are due to take place. In this situation you must accept any changes unless you have notified the service provider prior to the proposed date of change that you reject such a change.

If you reject any contract changes prior to them coming into effect, you have the right to terminate the contract immediately without incurring charges.

Where it is a change to interest or exchange rates that the payment service provider is proposing this can be applied immediately and without notice provided that such a right has been agreed upon in the contract and the change is based on the reference interest or exchange rates.