DRAFT — for internal legal review. This document has not been approved by Flatpay Legal or Compliance and is not the live customer-facing agreement. Do not issue, cite or rely on it. Placeholders for the contracting entity and support contact are still to be completed.
Flatpay

Pay by Link Merchant Terms

The terms that apply when you request payment from your customers using a Flatpay payment link. Section 1–14 apply to every merchant. Schedule 1 sets out the additional terms for your Merchant Category Code.

UNITED KINGDOM VERSION 1.0 — DRAFT LAST UPDATED 5 AUGUST 2026 GBP ONLY

SECTION 1About these Terms

1.1
These Terms and Conditions (“Terms”) govern the use of the Flatpay Pay by Link service (the “Service”) by merchants located in the United Kingdom (“you”, the “Merchant”).
1.2
The Service is provided by Flatpay (“we”, “us”, “Flatpay”) as part of your existing Merchant Agreement with Flatpay. These Terms supplement, and form part of, that Merchant Agreement. If there is any conflict between these Terms and the Merchant Agreement, the Merchant Agreement prevails except where these Terms expressly state otherwise.
1.3
By creating or sending a payment link through the Service, you agree to these Terms, including the terms specific to your Merchant Category Code (“MCC”) set out in Schedule 1.
1.4
We may update these Terms from time to time. We will give you at least two (2) months’ written notice of any change, in accordance with the Payment Services Regulations 2017, unless the change is required by law or card scheme rules to take effect sooner. If you do not accept a change, you may terminate your use of the Service without charge before the change takes effect. Continued use of the Service after the effective date constitutes acceptance.

SECTION 2Definitions

Card Schemes
Visa, Mastercard and any other payment network through which Transactions are processed.
Cardholder
The person to whom a payment link is sent and who authorises a Transaction.
Chargeback
A Transaction that is disputed and reversed under Card Scheme rules.
MCC
The four-digit Merchant Category Code assigned to you under Card Scheme rules, which reflects your primary business activity.
Payment Link
A unique URL generated through the Service that allows a Cardholder to make a card payment to you remotely.
SCA
Strong Customer Authentication as required under the Payment Services Regulations 2017 (as amended) and applicable FCA technical standards.
Transaction
A payment made by a Cardholder using a Payment Link.

SECTION 3The Service

3.1
The Service allows you to request payment from your customers by sending a Payment Link by SMS, email, messaging service or other agreed channel. Payments made through a Payment Link are card-not-present (remote) transactions.
3.2
Each Payment Link must relate to a genuine sale of goods or services by the business named in your Merchant Agreement, at your registered trading location(s), within the business activity described by your assigned MCC.
3.3
Payment Links expire after the period shown in your dashboard (by default 7 days). Expired links cannot be paid and a new link must be issued.
3.4
The Service is available only for Transactions in pounds sterling (GBP) unless we agree otherwise in writing.

SECTION 4Eligibility and onboarding

4.1
The Service is available only to Merchants who have completed our onboarding checks, including identity verification and customer due diligence carried out under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
4.2
You must tell us promptly, and in any event within 14 days, if there is any material change to your business, including a change of ownership, legal form, trading name, trading address, or the nature of the goods or services you sell. A change in business activity may require a change to your MCC and to the terms that apply to you under Schedule 1.
4.3
We may decline, suspend or withdraw access to the Service for any Merchant or MCC where required by law, Card Scheme rules, or our reasonable risk policies.

SECTION 5Your general obligations

You must, for every Payment Link you create:

5.1
Accuracy. State the amount clearly and describe the goods or services accurately in the link description. The amount charged must match the amount agreed with the customer.
5.2
One link, one sale. Use each Payment Link for a single, identifiable sale. You must not split a single sale across multiple links to avoid limits, or aggregate unrelated sales into one link.
5.3
Legitimate delivery channel. Send Payment Links only to customers who have asked to buy from you. You must not send unsolicited Payment Links, use links for marketing, or publish a Payment Link on a public website or social media page — a link is a payment request to a specific customer, not a checkout page.
5.4
No surcharging. You must not add a surcharge for paying by consumer debit or credit card, in line with the Consumer Rights (Payment Surcharges) Regulations 2012.
5.5
Receipts. Provide the customer with a receipt or confirmation for every completed Transaction, including your business name as it will appear on the Cardholder’s statement.
5.6
Refund policy. Have a clear refund and cancellation policy, make it available to the customer before payment, and honour it. Refunds must be made back to the card used for the original Transaction, never by cash or bank transfer.
5.7
Distance selling information. Because Pay by Link Transactions are distance contracts, you must comply with the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, including giving consumers the required pre-contract information and, where applicable, the 14-day cancellation right, and with the Consumer Rights Act 2015.
5.8
Lawful sales only. Sell only goods and services that are lawful in the UK, that you are licensed to sell where a licence is required, and that fall within your assigned MCC and Schedule 1.
5.9
No card data handling. Never ask a customer to send you their card number, CVV or expiry date by phone, SMS, email or any other channel. All card data must be entered by the Cardholder directly on the secure payment page.

SECTION 6Authentication and security

6.1
All Transactions are subject to SCA (3-D Secure) except where a lawful exemption applies. We apply exemptions automatically; you must not attempt to circumvent SCA.
6.2
You are responsible for keeping your Flatpay account credentials secure and for all Payment Links created through your account. Tell us immediately if you suspect unauthorised access.
6.3
We may delay, block or refuse any Transaction where we reasonably suspect fraud, unlawful activity, or a breach of these Terms, and where lawful we will tell you why.

SECTION 7Fees and settlement

7.1
The fees for the Service are set out in your Merchant Agreement or the pricing schedule provided to you. Pay by Link Transactions are card-not-present transactions and may be priced differently from in-person transactions.
7.2
Settlement timing follows your Merchant Agreement, subject to any MCC-specific settlement terms in Schedule 1 and to any holds or reserves applied under clause 8.
7.3
We may deduct from settlement any fees, Chargebacks, refunds, fines or other amounts you owe us.

SECTION 8Refunds, Chargebacks and reserves

8.1
You are liable for all Chargebacks and associated Card Scheme fees on Transactions processed through the Service, as set out in your Merchant Agreement.
8.2
Because Payment Link Transactions are card-not-present, they carry a higher risk of dispute. You should keep evidence of the customer’s order, your communication with the customer, and delivery or performance of the goods or services, for at least 13 months after the Transaction.
8.3
Where your Chargeback rate, refund rate or dispute profile materially exceeds Card Scheme thresholds or our reasonable risk expectations for your MCC, we may (acting reasonably and with notice where lawful) apply a rolling reserve, delay settlement, reduce your Payment Link limits, or suspend the Service.
8.4
For goods or services delivered or performed more than 7 days after payment (“delayed delivery”), the MCC-specific rules in Schedule 1 apply.

SECTION 9Prohibited use

9.1
You must not use the Service for any category listed in Schedule 2, for any activity outside your assigned MCC, or for:
  • transactions with yourself, your owners, directors or employees (self-payment or cash advance);
  • money transmission, currency exchange, or loading of e-money wallets;
  • collection of debts owed to third parties;
  • any sale that is illegal, or that breaches Card Scheme rules.
9.2
Breach of this clause is a material breach entitling us to suspend or terminate the Service immediately.

SECTION 10Data protection

10.1
Each party will comply with the UK GDPR and the Data Protection Act 2018 in connection with the Service.
10.2
For customer personal data you collect (for example the name, phone number or email address used to send the link), you are the controller. For payment processing data, Flatpay processes data as described in the Flatpay Privacy Notice available on our website.
10.3
You must have a lawful basis for sending a Payment Link to the contact details you use, and must not use those details for marketing without valid consent under the Privacy and Electronic Communications Regulations 2003.

SECTION 11Liability

11.1
Nothing in these Terms excludes or limits liability for death or personal injury caused by negligence, fraud or fraudulent misrepresentation, or any liability that cannot be excluded by law.
11.2
Subject to clause 11.1, our aggregate liability to you in connection with the Service in any 12-month period is limited to the total fees you paid us for the Service in that period, and neither party is liable to the other for loss of profit, loss of business, or indirect or consequential loss.
11.3
We do not guarantee uninterrupted availability of the Service. Planned maintenance will be notified in advance where practicable.

SECTION 12Suspension and termination

12.1
Either party may terminate use of the Service on one (1) month’s written notice. Termination of your Merchant Agreement terminates the Service automatically.
12.2
We may suspend or terminate the Service immediately where: you materially breach these Terms; we are required to do so by law, a regulator or a Card Scheme; or we reasonably suspect fraud or illegal activity.
12.3
Termination does not affect liability for Transactions, refunds or Chargebacks arising before or after termination in respect of Transactions processed through the Service.

SECTION 13Complaints

13.1
If you are unhappy with the Service, contact our support team first. We will acknowledge your complaint promptly and aim to resolve it within 15 business days (35 business days in exceptional circumstances), in line with the Payment Services Regulations 2017.
13.2
If you are a micro-enterprise or otherwise eligible, you may be able to refer your complaint to the Financial Ombudsman Service, Exchange Tower, London E14 9SR (financial-ombudsman.org.uk).

SECTION 14General

14.1
These Terms are governed by the laws of England and Wales, and the courts of England and Wales have exclusive jurisdiction, save that if your registered office is in Scotland or Northern Ireland you may bring proceedings in your local courts.
14.2
If any provision of these Terms is found unenforceable, the remainder continues in force. A failure to enforce a right is not a waiver of it. You may not assign your rights under these Terms without our written consent.

SCHEDULE 1MCC-specific terms

These terms apply according to the MCC assigned to you at onboarding, shown in your Merchant Agreement and dashboard. If you operate under more than one MCC, the terms for each MCC apply to the Transactions processed under it. These are in addition to Sections 1–14 above.

Hospitality
MCC 5812

Eating places and restaurants

Permitted uses: deposits and pre-payments for table bookings and private events, pre-orders for collection, invoice settlement for functions and catering.

  • Deposits and no-show charges must be agreed with the customer in writing (including by email or SMS) before the Payment Link is sent, including the amount and the cancellation terms.
  • For event or function bookings taking place more than 30 days after payment, keep the booking confirmation as delivery evidence; we may apply deferred settlement to the deposit element where the event is more than 90 days away.
  • Refunds for cancelled bookings must follow the cancellation policy shown to the customer before payment.
MCC 5813

Drinking places — pubs and bars

Permitted uses: deposits for table and area reservations, private hire, ticketed events run by the venue, and tab settlement.

  • Alcohol may only be supplied on your licensed premises in accordance with your premises licence under the Licensing Act 2003. Payment Links must not be used for remote sale and delivery of alcohol unless your licence permits off-sales and you carry out age verification (Challenge 25) at handover.
  • No-show and minimum-spend charges must be disclosed to the customer before payment.
MCC 5814

Fast food and takeaway

Permitted uses: telephone and message-based orders for collection or delivery.

  • The Payment Link description must identify the order (for example an order number). Goods should normally be delivered or collected within 24 hours of payment.
  • Where delivery is by your own staff, keep a record of delivery; where a customer claims non-delivery, that record is your primary Chargeback defence.
Food & convenience retail
MCC 5411MCC 5462

Grocery stores and supermarkets · Bakeries

Permitted uses: phone orders for collection or local delivery, deposits for large or custom orders such as celebration cakes and hampers.

  • Age-restricted products (alcohol, tobacco, lottery) must not be sold by Payment Link unless you are licensed for off-sales and verify age (Challenge 25) at handover.
  • For custom orders, keep the customer’s written specification. Custom goods may be exempt from the 14-day distance-selling cancellation right, but you must tell the customer this before payment.
MCC 5921

Package stores — beer, wine and spirits (off-licence)

Permitted uses: off-sales only, where your premises licence expressly permits them.

  • Payment Links may be used only where your premises licence permits off-sales and any delivery service complies with the Licensing Act 2003.
  • Age verification (Challenge 25) is mandatory at handover. A signature from a person appearing under 25 without ID is not a valid delivery.
  • Transactions must not be completed for customers who cannot verify their age; refund the Transaction in full.
  • Settlement may be subject to a higher risk review during your first 3 months on the Service.
Personal care & health
MCC 7230MCC 7298

Beauty and barber shops · Health and beauty spas

Permitted uses: booking deposits, no-show charges agreed in advance, payment for completed treatments, gift vouchers.

  • No-show and late-cancellation charges are enforceable only where the customer agreed to the policy before booking; keep the booking confirmation.
  • Gift vouchers must show an expiry date of at least 12 months and are redeemable against your services only.
  • Treatment courses paid up front (for example six sessions): if you cease trading or cannot deliver the remaining sessions, the undelivered element is refundable. We may treat course sales over £500 as delayed delivery under clause 8.4.
MCC 8021MCC 8099

Dentists and orthodontists · Health practitioners

Permitted uses: payment of treatment invoices, deposits for treatment plans.

  • You must hold and maintain any registration required for your practice (for example GDC, CQC or the relevant professional body) and tell us if it lapses.
  • Treatment plans paid in advance are delayed delivery; keep the signed treatment plan as evidence.
  • Payment Links must not be used for the sale of prescription-only medicines.
MCC 0742

Veterinary services

Permitted uses: payment of treatment invoices, deposits for procedures, out-of-hours telephone payments.

  • Keep the clinical invoice as Transaction evidence.
Trades & home services
MCC 1711MCC 1731MCC 0780MCC 7349

Heating & plumbing · Electrical contractors · Landscaping · Cleaning and maintenance

Permitted uses: deposits against written quotes, stage payments, and final invoices.

  • Deposits must not exceed 50% of the quoted price unless materials are custom-ordered, and each stage payment link must reference the quote or invoice number.
  • For consumer contracts agreed away from your business premises, the 14-day cancellation right applies. You must not start work within the cancellation period without the customer’s express request, and you must keep that request.
  • Where work completes more than 30 days after a deposit is taken, the deposit is delayed delivery under clause 8.4; keep the signed quote and completion record (photographs, sign-off, or invoice acceptance).
MCC 7538

Automotive service shops

Permitted uses: payment of repair invoices, deposits for parts orders, MOT and service bookings.

  • The Payment Link description must reference the vehicle registration or job number.
  • Parts deposits for special-order parts must be identified as such before payment; tell the customer if the deposit is non-refundable once the part is ordered.
Transport
MCC 4121

Taxis, limousines and private hire

Permitted uses: pre-payment for booked journeys, account settlement, deposits for airport transfers and events.

  • You must hold a valid operator’s licence under the Local Government (Miscellaneous Provisions) Act 1976, the Private Hire Vehicles (London) Act 1998, or equivalent local licensing, and tell us if it is suspended or revoked.
  • The Payment Link description must include the journey date. Journeys more than 30 days ahead are delayed delivery under clause 8.4.
General retail & services
MCC 5999MCC 5699

Miscellaneous retail stores · Miscellaneous apparel

Permitted uses: phone and message orders for collection or delivery, deposits for special orders.

  • Goods must normally be dispatched within 30 days of payment. If you cannot dispatch in time, tell the customer and offer a full refund.
  • The 14-day distance-selling cancellation right applies to most goods; you must tell consumers how to cancel and refund within 14 days of return.
  • Keep proof of dispatch and, for orders over £100, tracked delivery evidence.
MCC 7299

Miscellaneous personal services

Permitted uses: payment for services agreed with the customer in advance, deposits for appointments.

  • The service and date must be identifiable from the link description or your booking records.
  • Services scheduled more than 30 days after payment are delayed delivery under clause 8.4.

SCHEDULE 2Prohibited and restricted categories

Prohibited

The Service must not be used at all for these.

  • Gambling, betting, lotteries and prize draws requiring payment (including MCC 7995)
  • Adult content and services
  • Sale of tobacco, e-cigarettes or vaping products at a distance (including MCC 5993) unless separately approved in writing
  • Cryptoasset sales, exchange or brokerage (including MCC 6051 in respect of cryptoassets)
  • Money transfer, remittance and cheque cashing
  • Weapons, ammunition and offensive weapons as defined by UK law
  • Controlled drugs and psychoactive substances; cannabis products other than lawful consumer CBD products
  • Prescription-only medicines sold at a distance
  • Counterfeit goods and goods infringing intellectual property rights
  • Pyramid, Ponzi and multi-level marketing recruitment fees
  • Debt collection on behalf of third parties
  • Any business activity requiring FCA authorisation that you do not hold

Restricted

Written approval from Flatpay is required before first use.

  • Remote sale of alcohol for delivery (see the MCC 5921 terms)
  • Travel services, package holidays and event tickets where the event or travel is more than 90 days after payment
  • Subscriptions and recurring billing of any kind — the Service supports single payments only
  • Charitable donations (MCC 8398)
  • Any Transaction above your per-link limit shown in your dashboard
Not sure whether a sale is permitted? Contact Flatpay support before sending the Payment Link. Sending a link for a prohibited category is a material breach under clause 9.2 and may result in immediate suspension.