Electronic Payment Agreement Template for England and Wales

An Electronic Payment Agreement governed by English and Welsh law is a legally binding contract that establishes the terms and conditions for electronic payment processing services. It covers essential aspects such as transaction processing, security requirements, fees, liability allocation, and compliance with UK payment regulations including the Payment Services Regulations 2017 and relevant FCA requirements. The agreement ensures all parties understand their rights, obligations, and responsibilities in relation to electronic payment processing.

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What is a Electronic Payment Agreement?

The Electronic Payment Agreement is essential for businesses engaging in electronic payment processing within England and Wales. This document establishes the legal framework for payment processing relationships, incorporating requirements from UK payment regulations, data protection laws, and financial services legislation. It's particularly crucial in today's digital economy where electronic payments are increasingly prevalent. The agreement covers critical aspects such as transaction processing, security protocols, fee structures, and compliance requirements, while ensuring alignment with UK regulatory standards including the Payment Services Regulations 2017 and FCA guidelines.

What sections should be included in a Electronic Payment Agreement?

1. Parties: Identification of the payment service provider and the client/merchant

2. Background: Context of the agreement and brief description of the services

3. Definitions: Key terms used throughout the agreement including relevant regulatory definitions

4. Services Description: Detailed outline of payment services provided and scope of services

5. Fee Structure: Payment terms, transaction fees, and charging mechanisms

6. Security Requirements: Security protocols, authentication requirements, and data protection measures

7. Service Levels: Performance standards and availability commitments

8. Term and Termination: Duration of agreement and termination provisions

9. Liability and Indemnification: Allocation of risks and responsibilities between parties

What sections are optional to include in a Electronic Payment Agreement?

1. Integration Requirements: Technical specifications for system integration with client systems

2. Currency Conversion: Terms for handling multiple currencies and cross-border transactions

3. Merchant Banking Details: Specific settlement account information for merchant services

4. Dispute Resolution Process: Specific procedures for handling payment disputes and chargebacks

What schedules should be included in a Electronic Payment Agreement?

1. Fee Schedule: Detailed breakdown of all applicable fees and charges

2. Service Level Agreement: Detailed performance metrics and service standards

3. Technical Integration Guide: Technical specifications and API documentation

4. Security Protocol Requirements: Detailed security requirements and compliance standards

5. Data Processing Agreement: GDPR-compliant data processing terms and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Publisher

Genie AI

Sector

Banking

Cost

Free to use

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